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| The Tax Publishers2019 TaxPub(DT) 7991 (Jp-Trib) INCOME TAX ACT, 1961
Section 154
No fault lies with assessee as it was under the impression that its claim was accepted as apparent from reading of the rectification order passed under section 154 and only on receipt of refund cheque, the assessee realized that the credit of TDS has still not been granted to it, therefore, where the income was offered to tax and brought to tax by AO, assessee was legal eligible and well within its right to claim corresponding TDS and AO was directed to give the TDS credit to assessee.
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Rectification under section 154 - Mistake apparent - Assessee sought credit of TDS in respect of income already offered -
Assessee was a firm of Chartered Accountants and professional fees received during the year is booked as income and credit of TDS was taken corresponding to income offered to tax and the remaining TDS credit is carried forward to the next years. It was noticed that an amount received was booked under professional fees and duly offered to tax in the return of income. Assessee moved an application for rectification of mistake under section 154 seeking credit of TDS in respect of income already offered to tax. Even though AO stated in his rectification order under section 154 that the claim of the assessee was found correct, however, while processing of refund claim, credit was again not given to assessee. As soon as assessee received the refund cheque wherein there was short credit of TDS, assessee moved an appeal before CIT(A) who dismissed the appeal of assessee holding that since the order under section 154 was passed, there was delay in filing the appeal and therefore the appeal of the assessee was dismissed at admission stage. Held: AO had passed specific directions under section 154 allowing the assessee's claim towards grant of TDS credit and only when assessee received the cheque towards the income tax refund, there was apparent inconsistency between the order passed under section 154 and processing of the income tax refund wherein assessee was not granted credit for the TDS which was directed to be allowed by the AO while passing the order under section 154. No fault lies with the assessee as it was under the impression that its claim has been accepted as apparent from reading of the rectification order passed under section 154 and only on receipt of refund cheque, the assessee realized that the credit of TDS has still not been granted to it. Therefore, where the income was offered to tax and brought to tax by AO, assessee was legal eligible and well within its right to claim corresponding TDS and AO was accordingly directed to give the TDS credit to assessee.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, JAIPUR BENCH
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