2025 (4) TMI 1692

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.... : "The refund was issued after due verification of TDS records in Form 26AS, which reflected a TDS credit of Rs. 2,86,834/-. The refund arose due to excess TDS paid, and as per section 237 of the Income Tax Act, a taxpayer is entitled to claim a refund of any tax paid or deducted in excess." 3. The brief facts of the case are that, the assessee is a co-operative society did not file any Return of Income ("ROI") u/s. 139 of the Income Tax Act, 1961 ("the Act") for A.Y. 2018-19. Subsequently, the case of the assessee was reopened u/s.147 of the Act and a notice u/s.148 of the Act was issued by Learned Assessing Officer ("Ld. AO"). In response to the notice u/s. 148 of the Act, the assessee filed its ROI on 2.5.2022 declaring total income ....

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.... cannot be used as an opportunity to claim fresh deduction or exemption. However, in the present case, there is no fresh claim of deduction or exemption. The assessee has merely claimed a refund of TDS, which is a statutory right and directly linked to the income assessed in the return filed in response to notice u/s. 148 of the Act. In support of his submission, the Ld. AR relied on the decision of Hon'ble Allahabad High Court in the case of CIT Vs. Vali Brothers (2005) 282 ITR 149 (Allahabad) and Hon'ble Jharkhand High Court in the case of Shri Chitranjan Jaiswal Vs. CIT in C.W.J.C. No. 2889 of 2000 on 16.06.2011. The Ld. AR further relied on the decision of the co-ordinate bench of the Tribunal in assessee's own case for A.Y.....

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....satisfied, section 263 can be invoked. 6.1 Reliance placed by Ld. PCIT on CIT Vs. Sun Engineering Works (P) Ltd. (supra) is misplaced. We have gone through the judgment of Hon'ble Supreme Court in the case of CIT Vs. Sun Engineering Works (P) Ltd. (supra), wherein the Hon'ble Supreme Court dealt with a situation that the assessee admitted to claim additional deduction unrelated to the reassessment issue. However, in the present case, the refund claimed by the assessee is not a fresh deduction / exemption, but a claim of TDS credit linked to the assessed income. Further, the TDS is a statutory right u/s. 199 and 237 of the Act and it credits cannot be denied merely because reassessment was initiated u/s. 147 of the Act. 6.2 We have....

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....der section 139(1) of the Act but has filed his return of income in response to the notice under section 147 of the Act while claiming the refund of excess tax paid. In our opinion, when the Ld. AO has framed the assessment considering the income as NIL as filed by the assessee in its return of income, the assessee is entitled for the refund of excess amount paid as taxes. Various judicial pronouncements have upheld the aforesaid view. Further, Section 237 of the Act provides that if the assessee has paid excess of the amount for which the assessee is properly chargeable under the Act for that assessment year such person is entitled to get the refund of the excess amount. In the instant case, the entire amount of TDS paid by the assessee wa....