Credit of DDT paid denied on Technical Default: ITAT directs Revenue to correct Data uploaded in OLTAS Database and Grant Credit of DDT [Read Order]

The Income Tax Appellate Tribunal ( ITAT ) Ahmedabad Bench has held that credit of Dividend Distribution Tax (DDT) paid denied on technical default and directs revenue to correct data uploaded in Online Tax Accounting System (OLTAS) database and grant credit of Dividend Distribution Tax (DDT). The appellant, Strategic Infosystems Pvt. is a Private Limited Company engaged in the business of providing service. During scrutiny assessment, the appellant has declared a dividend of Rs.22,87,500/- and has paid Dividend Distribution Tax (DDT) u/s. 115- O of the I.T. Act. The Assessing Officer (CPC) has not given the credit of DDT of Rs.3,88,761/- and has raised the demand for DDT of Rs.5,13,165/- along with interest u/s. 115P of Rs.1,24,404/- alleging that a technical default was committed at the time of filing of challan, wherein a wrong column was tick marked by the assessee inadvertently. The appellant filed a rectification application u/s. 154 on the CPC portal and the Assessing Officer rejected the rectification application by directing the assessee to get the mistake corrected by the bank/jurisdictional Officer for the corrected date uploaded to the OLTAS database to enable him to get the credit of DDT. The appellant filed an appeal against the above rectification application and the CIT(Appeals) dismissed the appeal hence, the appellant filed appeal before ITAT. The counsel for the assessee submitted that the payment of dividend distribution tax is also made in time, and it is evident from the challan. The counsel for the assessee further submitted that owing to an inadvertent mistake committed at the time of filing of challan, the vested legal right of the assessee to get the credit of dividend distribution tax deposited within time cannot be denied. The Tribunal observed that the assessee has already approached the CPC thrice and also approached CIT(Appeals) for redressal of its grievance and there is no denying that the assessee has paid and deposited DDT within the due date. The Coram of Mr. Waseem Ahmed, Accountant Member, and Mr. Siddhartha Nautiyal, Judicial Member has held that “in our considered view, it is a fit case where the assessee should be granted necessary credit of DDT paid. Accordingly, the revenue is directed to grant credit of DDT to the assessee by giving necessary directions to the jurisdictional Assessing Officer to correct the data uploaded to the OLTAS database and grant credit of DDT to the assessee”. Mr. Sanjay R. Shah and Mr. R.R. Makwana appeared for the appellant and revenue. The appellant, Strategic Infosystems Pvt. is a Private Limited Company engaged in the business of providing service. During scrutiny assessment, the appellant has declared a dividend of Rs.22,87,500/- and has paid Dividend Distribution Tax (DDT) u/s. 115- O of the I.T. Act. The Assessing Officer (CPC) has not given the credit of DDT of Rs.3,88,761/- and has raised the demand for DDT of Rs.5,13,165/- along with interest u/s. 115P of Rs.1,24,404/- alleging that a technical default was committed at the time of filing of challan, wherein a wrong column was tick marked by the assessee inadvertently. The appellant filed a rectification application u/s. 154 on the CPC portal and the Assessing Officer rejected the rectification application by directing the assessee to get the mistake corrected by the bank/jurisdictional Officer for the corrected date uploaded to the OLTAS database to enable him to get the credit of DDT. The appellant filed an appeal against the above rectification application and the CIT(Appeals) dismissed the appeal hence, the appellant filed appeal before ITAT. The counsel for the assessee submitted that the payment of dividend distribution tax is also made in time, and it is evident from the challan. The counsel for the assessee further submitted that owing to an inadvertent mistake committed at the time of filing of challan, the vested legal right of the assessee to get the credit of dividend distribution tax deposited within time cannot be denied. The Tribunal observed that the assessee has already approached the CPC thrice and also approached CIT(Appeals) for redressal of its grievance and there is no denying that the assessee has paid and deposited DDT within the due date. The Coram of Mr. Waseem Ahmed, Accountant Member, and Mr. Siddhartha Nautiyal, Judicial Member has held that “in our considered view, it is a fit case where the assessee should be granted necessary credit of DDT paid. Accordingly, the revenue is directed to grant credit of DDT to the assessee by giving necessary directions to the jurisdictional Assessing Officer to correct the data uploaded to the OLTAS database and grant credit of DDT to the assessee”. Mr. Sanjay R. Shah and Mr. R.R. Makwana appeared for the appellant and revenue. Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

Credit of DDT paid denied on Technical Default: ITAT directs Revenue to correct Data uploaded in OLTAS Database and Grant Credit of DDT [Read Order]

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