Income Tax Appellate Tribunal - Delhi
Sohan Lal Sabharwal, New Delhi vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH 'G' : NEW DELHI)
SMT. DIVA SINGH, JUDICIAL MEMBER
and
BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER
ITA No.5194/Del./2010
(ASSESSMENT YEAR : 2007-08)
Shri Sohan Lal Sabharwal, vs. ACIT, Circle 32 (1),
34, Sidhartha Enclave, New Delhi.
New Delhi.
(PAN : AQIPS6953J)
(APPELLANT) (RESPONDENT)
ASSESSEE BY : Shri Anoop Mehra, CA
REVENUE by : Shri S. Mohanthy, DR
ORDER
PER B.C. MEENA, ACCOUNTANT MEMBER :
This appeal filed by the assessee arises out of the order of the CIT (Appeals)- XXVI, New Delhi dated 15.09.2010 for the assessment year 2007-08. The grounds of appeal read as under :-
"1. That on the facts and circumstances of the case, the Learned CIT (A) has erred in holding that the claim of TDS cannot be allowed in view of the provisions contained in section 239(2)(c).
2. That the Learned CIT (A) has erred on the facts and in law in not allowing the claim of TDS amounting to Rs.1,04,636/-, although the same is reflected in 26AS and the corresponding income was duly declared in the return of income filed.
3. That the impugned Appellate order is bad in law and therefore, invalid.2 ITA No.5194/Del./2010
4. The Appellant crave leave to add/alter any/all grounds of appeal at the time of hearing of this Appeal Petition."
2. The assessee is an individual. The return of income filed for the assessment year 2007-08 on 31.07.2007 declaring income at Rs.15,99,980/-. The same was accepted and an intimation u/s 143(1) was sent. In the intimation, a demand of Rs.41,886/- was raised. Subsequently, the assessee claimed that there was an inadvertent mistake in claiming the credit of TDS and an application u/s 154 was moved before the Assessing Officer for granting the credit for tax deducted at source. The Assessing Officer rejected the application for rectification u/s 154. The assessee filed appeal before the CIT (A). The CIT (A) dismissed the assessee's appeal in view of the overriding provisions of section239(2)(c) by holding that by these provisions, the Assessing Officer is restrained for allowing an application u/s 154 dated 25.08.2009 which ultimately result in a refund.
3. While pleading on behalf of the assessee, the learned AR submitted that the assessee is a senior citizen and the CIT (A) was not justified in rejecting the assessee's claim for credit for TDS. The income on which tax was deducted has been offered in the return of income. However, due to inadvertent mistake, the claim for TDS was not made. He pleaded that a senior citizen should not be punished for a small inadvertent mistake occurred while filing the return of income. He also submitted that the CIT (A) has dismissed the assessee's appeal by holding that the assessee's application dated 25.08.2009 made u/s 154 would have resulted into refund which is prohibited by the provisions of section 239(2)(c) of the Income-tax Act and these provisions are stringent and does not provide for 3 ITA No.5194/Del./2010 alternative remedy in such cases including for seeking of relief by way of condonation of delay in filing the claim of refund. However, he submitted that the assessee has made an application for refund on 25.09.2008 which is placed at page 14 of the paper book filed by assessee. Ld. AR also pleaded that the same was also available before the CIT (A). CIT (A) has not mentioned anything in this regard in her order. Since the assessee has claimed that this application for rectification dated 20.11.2008 filed in the Income-tax Circle 32(1), New Delhi on 25.11.2008 has not been considered by the CIT (A), in our considered view, it shall be appropriate to restore the appeal to the CIT (A) to verify the records and decide on the issue. If this application u/s 154 is found in order then the provisions of section 239(2)(c) shall not be applicable. Therefore, we restore the issue to the file of the CIT (A) to decide the issue de novo.
4. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in open court on this 31st day of October, 2011.
Sd/- sd/-
(DIVA SINGH) (B.C. MEENA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated the 31st day of October, 2011
TS
Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT (A)-XXVI, New Delhi.
5.CIT(ITAT), New Delhi.
AR, ITAT
NEW DELHI.