TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1000
X X X X Extracts X X X X
X X X X Extracts X X X X
....ond) through M/s Stock Holding Corporation of India Ltd. (hereinafter referred to as SHCIL) as under: 8% RBI Bond Cumulative option 4,00,00,000 8% RBI Bond Non- Cumulative option 4,00,000 2.1 Further, it was submitted that the assessee had invested in 7.75% taxable Government of India Bonds (non-cumulative option) through M/s HDFC Bank Ltd. 2.2 Further, it was submitted that the assessee had declared the interest on accrual basis in the returns filed for the earlier years and had deposited her tax liability on such interest income in different Assessment Years whose assessments have been completed under section 143(1) as under. A.Y. 2018-19 - Rs.32,00,000 A. Y. 2019-20 - Rs. 33,44,000 A.Y. 2020-21 - Rs. 32,00,000 A. Y. 2021-22 - Rs. 25,00,000 A. Y. 2022-23 - Rs.25,00,000 Total - Rs. 1,47,44,000 Further, it has been submitted that out of the Interest received on maturity of Rs. 2,40,40,000 during the year (on which TDS has been deducted u/s 193 of the I.T. Act, 1961) the income relatable to the year under consideration of Rs. 92,96,000, declared in the return after reducing the interest accrued stated as above, has been accepted. 2.3 The assessee submitted....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. Because the learned authorities below have erred both on facts and in law in not allowing the claim of the credit of TDS of Rs.24,04,000 reported in Form 26AS-Annual Tax Statement of the appellant by the M/s Stock Holding Corporation Ltd. in respect of the TDS deducted on the interest received on maturity of 8% Taxable Gol Bond. The disallowance made is liable to be 3. Because in any view of the case, the appellant having declared the interest on accrual basis in the returns filed for the earlier years deposited his tax liability on such interest income in different Assessment Years whose assessments have been completed under section 143(1) as under. A.Y. 2018-19 - Rs.32,00,000 A. Y. 2019-20 - Rs. 33,44,000 A.Y. 2020-21 - Rs. 32,00,000 A. Y. 2021-22 - Rs. 25,00,000 A. Y. 2022-23 - Rs.25,00,000 Total - Rs. 1,47,44,000 Thus, out of the Interest received on maturity of Rs. 2,40,40,000 during the year (on which TDS has been deducted u/s 193 of the I.T. Act, 1961) the income relatable to the year under consideration of Rs. 92,96,000, declared in the return after reducing the interest accrued stated in the above table, has been accepted. 4. Because the learned aut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the I.T. Act, 1961 of Rs. 24,04,000 thereon, which was reported by SHCIL in the Annual Tax Statement - Form No. 26AS for the impugned year i.e. A.Y. 2023- 24 (PB Page Nos. 42-62, relevant page 47) That the appellant has disclosed the interest earned on 8% Taxable Government of India Bonds both cumulative and noncumulative in her ITR filed for various years. The tax was paid on the interest under cumulative option on accrual basis in terms of section 145 of the I.T. Act, 1961, the detail of the interest earned is as under. Asst. Year Interest on Non Cum. 8% RBI Bond credited in Bank A/c (inv. Value Rs. 40 lacs) Interest due on Non Cum. 8% RBI Bond (Inv. Value Rs. 40 lacs) Interest received on Non Cum. 7.75% RBI Bond credited in Bank A/c (Inv. Value Rs. 2.75 Cr.) Total Interest received on RBI Bond TDS Deducted Claimed in ITR (In respect of TDS on Interest credited in Bank A/c) Interest accrued on 8% Cum. RBI Bond (Inv. Value Rs. 4.00 Cr.) TDS Deducted Claimed in ITR (in respect of TDS on maturity Interest credited in Bank A/c) Total Interest on Taxable Bonds disclosed in ITR PB Page Nos. (A) (B) (C) D= (A+B+C) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the present appeal merged with those orders and the remedial option available to the appellant was to file appeal against the rectification order u/s 154 dated 08.04.2024. The aforesaid decision of the Id. CIT(A) is bereft of the situation where the appeal is filed against order passed under section 143(1) and nothing precludes him to seek remedial action by the appellant by raising online rectification request before CPC seeking redressal of his grievance under section 154. Had the grievance been resolved by CPC the appeal filed before CIT(A) could have been withdrawn, it is not a case that the appeal filed against the Intimation u/s 143(1) is absolutely barred in the scheme of Act. It is respectfully submitted that the appellant has two remedies against the Intimation u/s 143(1), viz (i) file appeal u/s 246A, or (ii) file rectification application u/s 154. Accordingly, the appellant filed appeal and a rectification-application u/s 154 which is not only one of the available remedies but also a simpler remedy and practically resorted to by many of the assessee's, particularly in the matter of the adjustment involved in the present appeal. Your honours ki....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he mistake sought to be rectified must be manifest and self-evident on the face of the record. It must be one which is apparent and not lurking, which is visible and not dormant, which can be seen and not hidden. It cannot be demonstrated to exist by relying upon materials outside the record. A decision on a debatable point of law or failure to apply the law to a set of facts which remain to be investigated cannot be corrected by way of rectification. The appellant is very much entitled to the TDS credit and by not allowing the same, the same would result in computation of tax liability beyond and against the scheme of the Act. Hence it is prayed that the lower authorities be directed to accept the claim of appellant on merit." 7. On the other hand, the Ld. DR supported the order of the Ld. CIT (A). 8. We have heard both the parties and perused the material available on record. We note that the Ld. CIT(A) dismissed the appeal of the assessee, on the ground that the correct recourse for the assessee was to file an appeal against the subsequent rectification order dated 08.04.2024 passed by the CPC, as the present appeal had merged in the subsequent rectification order....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) Interest received on Non Cum. 7.75% RBI Bond credited in Bank A/c (Inv. Value Rs. 2.75 Cr.) Total Interest received on RBI Bond TDS Deducted Claimed in ITR (In respect of TDS on interest credited in Bank A/c) Interest accrued on 8% Cum. RBI Bond (Inv. Value Rs. 4.00 Cr.) TDS Deducted Claimed in ITR (in respect of TDS on maturity interest credited in Bank A/c) Total Interest on Taxable Bonds disclosed in ITR PB Page Nos. (A) (B) (C) D= (A+B+C) E D+E 2018-19 3,20,000 - 3,20,000 32,000 32,00,000 - 35,20,000 5-8 2019-20 1,76,000 1,44,000 3,20,000 32,000 32,00,000 - 35.20,000 9-12 2020-21 3,20,000 - 3,20,000 32,000 32,00,000 - 35,20,000 13 - 17 2021-22 3,20,000 - 11,74,686 14,94,686 1,34,602 25,00,000 - 39,94,686 18-26 2022-23 3,20,775 - 21,31,250 24,52,025 2,45,204 25,00,000 - 49,52,025 27 - 34 1,44,000* 1,46,00,000 2023-24 3,39,803 - 21,31,2....