TaxTMI 
TaxTMI 
2025 (11) TMI 2055
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...., the assessee claimed TDS credit of Rs. 1,78,80,099/- as reflected in Form 26AS at that point in time. Subsequently, the assessee filed revised return on 2nd March 2015 and in the interim period between original return of income and revised return of income, a party viz. Prime Focus Ltd deducted and deposited tax with the credit of Central Government amounting to Rs. 73,24,074/- but did not inform the assessee about the same. Thus, at the time of filing of revised return, the assessee was unaware of the additional TDS credit of Rs. 73,24,074/- and inadvertently missed to claim the genuine TDS credit in the revised return of income as well. However, the assessee had offered the corresponding income of Rs. 7,32,40,740/- pertaining to Prime Focus Ltd at the first instance itself i.e. original return followed with revised return of income. 3. Further, the case was selected for scrutiny and assessment proceedings were completed under section 143(3) of the Act vide order dated 19/01/2017 whereby the AO made a transfer pricing adjustment which was subsequently deleted by the Ld. CIT(A). During the proceedings, the assessee was not aware of the genuine TDS credit and accordingly, the s....
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....o grant the tax credit of INR 73,24,074 along with interest under section 244A of the Act. The Appellant craves leave, to add, to amend, modify, rescind, supplement, or alter any of the Grounds stated here-in-above, either before or at the time of hearing of this appeal. Further, the Appellant craves leave to submit such facts/documents/evidence in the course of hearing as may be necessary." 6. We have heard Ld. AR and Ld. DR. At the outset, Ld. AR submitted on behalf of the assessee that it was an inadvertent error of not claiming TDS credit in return of income which does not mean that assessee has forgone his right to claim the tax credit. Secondly, the denial of credit regarding the said TDS by the AO as well as Ld. CIT(A) is against the principle of natural justice and legal settled precedents and shall amount to double taxation of the assessee which is not permissible in law. Thirdly, it is in consonance of Article 265 of the Constitution of India which mandates that „no tax shall be levied or collected except by authority of law; if a tax has been paid in excess of the tax specified, the same has to be refunded.' It is therefore stated that denial o....
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....und would only be granted when the TDS matches with the details mentioned in Form 26AS and the mismatching is not attributable to the assessee and the fault solely lay with the deductor. The petitioner has also made out a case for payment of interest that the delay in refunding the amount was attributable solely with the Income Tax Department and there is no fault on the part of the assessee." Ld. AR further submitted that Hon'ble Allahabad High Court in the same decision has relied the judgment of Hon'ble Delhi High Court in Its Own Motion (supra) that when an assessee approaches the Assessing Officer with requisite details and particulars in the forms of TDS certificate as an evidence against any mismatched amount, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS in the Government Account and if the payment has been made, credit of the same should be given to the assessee. 8. Ld. AR further relied on the judgment of ITAT in the case of Damco India (Pvt.) Ltd. vs. CIT (2023) 153 taxmann.com 636 (Mumbai Trib.) wherein it was held that section 219 of the Act also mandates that the credit of advance tax shall be given to the assessee i....
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.... filling of return of Income, the assessee inadvertently missed to claim TDS credit of INR 73,24,074 and thereby requested us to provide credit of the same at the time of passing order giving effect. However, as per the provision of the I.T. Act,1961, the Assessee shall be eligible to claim TDS credit as reported in the return of Income. Accordingly, since TDS amount of INR 73,24,074 was not claimed in return of Income by the assessee, the said extra credit of Rs. 73,24,074/- is not allowed to the assessee." 12. Further, Ld. CIT(A) has confirmed the said order of AO while observing as under:- "6. Ground No.1 to 4 are on the singular issue of granting of credit for TDS over and above that claimed in the return of income. Therefore, all the grounds are dealt with together and decided as follows. 6.1. The undisputed facts of the case are that the appellant filed its original return of income on 22.11.2023 claiming credit of TDS for an amount of Rs. 1,78,80,099/-. Thereafter, the appellant filed a revised return on 02.03.2015, without making any fresh claim for TDS. It is claimed by the appellant that one of the parties had deducted TDS of Rs. 73,24,074/- after the....
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....paid to the Central Government shall be given for the assessment year for which such income is assessable. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of - (i) the information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorised by such authority; and (ii) the information in the return of income in respect of the claim for the credit, Subject to verification in accordance with the risk management strategy formulated by the Board from time to time. 6.9. Thus, one of the fundamental requirements is that the claim for credit of TDS ought to be made in the return of income in accordance with Rule 37BA, supra. 6.10. It is also pertinent to note there is a statutory time limit and specified form for claiming refund of taxes paid, including by way of TDS as provided in Section 239 of the Income Tax Act, which mandates as under: "Section 239. (1) Every claim for refund under this Chapter shall be made by furnishing return in accordance with the provisions of section 139." 6.11 This statutory ....
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....rein. Case in point is the directions of Hon'ble High Court of Delhi in Hari Kishan Sharma Vs Government of NCT of Delhi W.P.(C).No.915 of 2019 dated September 3, 2024 (2024) 166 taxmann.com 688 (Delhi). The Hon'ble High Court directed the Board to condone the delay and allow the appellant assessee therein to file a revised return for making a fresh claim of refund. It did not do away with the need to file a proper return, duly filed and or validly condoned under the Act. The case laws relied on by the appellant are clearly distinguishable to the facts of appellant's case. 6.14. The appellant being a corporate entity and a regular tax payer ought to have known full well that time limit for filing of any revised return under the Act is already over. It also ought to know that in order to seek credit for additional TDS which was not made in the return of income filed earlier, other legal remedies available under the Act. Including filing of representation to CBDT under Section 119(2)(b) of the Act need to be explored. Appellant's claim that it did not come to know about the deduction of additional TDS by the concerned party does not inspire confidence for the....
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....rt to ascertain or enquire from the assessee regarding his claim that the corresponding income was duly offered and the assessee has positively asserted that the corresponding income of Rs. 7,32,40,740/- pertaining to Prime Focus Ltd was offered at the first instance itself i.e. original return followed with revised return of income. Since the said deposit of TDS was duly reflected in Form 26AS and for that reason the AO as well as Ld. CIT(A) has chosen not to make enquiry in that regard. Both the lower authorities has proceeded on the premise that procedural rule of 37BA of Income Tax Rules for claiming TDS credit for tax deducted at source has not been followed and the claim was not made in ITR and also not within the reasonable period as the same has been made after a period of 9 years and as per the settled legal precedents and legal provision, the claim of the assessee has been denied. It is a settled law that the rule and procedure are handmade of Justice. When substantial justice is required to be done, the rule and procedure does not come in the way of upholding the principle of natural justice for imparting substantial justice. Admittedly the deduction and deposit TDS is a....