Income Tax Appellate Tribunal - Delhi
M/S. Sushil Chand Contractor And ... vs Ito, Meerut on 3 April, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES "G" : DELHI
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND
SHRI L.P. SAHU, ACCOUNTANT MEMBER
ITA.No.968/Del./2015
Assessment Year 2009-2010
M/s. Sushil Chand
Contractor & Co. Mawana,
Meerut. C/o.Sh.PK The Income Tax Officer,
Dublish, Advocate, 205/5,
vs Ward-2(3), Meerut.
Thapar Nagar, Meerut -
250 001.PAN ABAFS2670M
(Appellant) (Respondent)
For Assessee : Shri P.K. Dublish, Advocate
For Revenue : Shri Kaushlendra Tiwari, Sr.DR
Date of Hearing : 26.03.2018
Date of Pronouncement : 03.04.2018
ORDER
PER BHAVNESH SAINI, J.M.
This appeal by assessee has been directed against the order of the Ld. CIT(A), Meerut, dated 17th December, 2014, for the A.Y. 2009-2010 on the following grounds : 2
ITA.No.968/Del./2015 M/s. Sushil Chand Contractor & Co. Mawana, Meerut.
"1. That on facts and in the circumstances of the case, the learned CIT(A) erred in law in confirming the illegal order passed by the assessing officer U/S 154 of I.T. Act, rejecting the claim of refund of the appellant firm on the ground of non-matching of TDS amount on website of NSDL.
2. That on facts and in the circumstances of the case, the learned CIT(A) erred in law in not allowing the credit of prepaid taxes (TDS) to the appellant firm.
3. That at any rate the order passed by the learned assessing officer U/S 154 and confirmed by the learned CIT(A) is illegal, arbitrary and bad in law. On the merit of the case, the claim of TDS amounting to Rs.1,31,451/- made by the appellant firm U/S 154 of I.T. Act ought to have been allowed.
4. That the order passed by the learned assessing officer U/S 154 of I.T. Act and confirmed by the learned CIT(A) is against the principle of natural justice and the provisions of Income Tax law."
2. Briefly, the facts of the case are that for A.Y. 2009- 2010, assessment was completed under section 143(3) on 17th January, 2011. During assessment proceedings, the A.O. did not allow credit of TDS amount to Rs.1,31,451/-. The assessee 3 ITA.No.968/Del./2015 M/s. Sushil Chand Contractor & Co. Mawana, Meerut.
filed application under section 154 for allowing the credit of Rs.1,31,451/-. The assessee requested the A.O. to refund the amount which is payable to the assessee. The A.O. in the letter addressed to the assessee informed him that his assessment has been revised under section 154 of the Act and refund will be issued to him after approval of JCIT. However, the A.O. again wrote a letter to the assessee that JCIT, Range-II, Meerut has rejected the request for approval of refund due to non-matching of TDS amount. The A.O. further informed to assessee that his petition under section 154 of the I.T. Act is rejected. The assessee filed the appeal before the Ld. CIT(A). The Ld. CIT(A) also similarly noted that as per practice prevalent in the Department, before issuing any refund of more than Rs.1 lakh, the A.O. has to take online approval of the Range Head. The Range Head gives his approval only when pre-paid tax claimed by assessee is reflected in the online record of the assessee. The appeal of assessee was accordingly rejected. 4
ITA.No.968/Del./2015 M/s. Sushil Chand Contractor & Co. Mawana, Meerut.
3. After considering the rival contentions, we are of the view that the matter requires reconsideration at the level of the A.O. The assessee filed copy of the TDS certificates in the paper book from pages 44 to 49. The Department has maintained online system and only on that basis, the Department claimed that refund could be allowed to the assessee if the online system shows the credit of TDS. The assessee has no control over the same. The assessee, at the most, could produce the TDS certificates which could have been verified by the A.O. before giving credit of TDS to the assessee. In case, there is no matching of TDS amount on online, according to A.O, the assessee would never get refund of the same amounts. In view of the above, we are of the view that this point could not be considered in favour of the Revenue. The assessee cannot be faulted for the online system not showing the credit in the hands of the assessee. In such a situation, either the online system should be updated or the A.O. should have verified the facts manually. The assessee cannot be penalized for the same. The Ld. D.R. also suggested that the matter may be remanded 5 ITA.No.968/Del./2015 M/s. Sushil Chand Contractor & Co. Mawana, Meerut.
to the file of A.O. for verification of the facts. In this view of the matter, we set aside the orders of the authorities below and restore the matter in issue to the file of A.O. with a direction to re-decide the issue in accordance with law, after verifying the TDS certificates manually, produced by the assessee. A.O. shall give reasonable, sufficient opportunity of being heard to the assessee and shall do the needful to provide refund, if any, to the assessee as per law.
4. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court.
Sd/- Sd/-
(LP SAHU) (BHAVNESH SAINI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Delhi, Dated 03rd April, 2018
VBP/-
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT 'G' Bench, Delhi
6. Guard File.
// BY Order //
Assistant Registrar : ITAT Delhi Benches : Delhi.