Denial of TDS in intimation order u/s 143(1) without reasons: ITAT rules Assessee entitled to credit of TDS [Read Order]

The Income Tax Appellate Tribunal (ITAT), Kolkata has ruled that, the assessee entitled to the credit of TDS as denial of TDS in the intimation order under Section 143(1) was without assigning reasons.

The assessee, Baid Trade Fina Pvt Ltd filed its return of income on 26.09.2010 claiming TDS of Rs. 79,028/- as per Form 26AS, however in the intimation/order dated 25.04.2011 u/s 143(1) of the Act, the assessee was not granted the credit of TDS without assigning any reasons therefore. The appeal of the assessee also dismissed as barred by limitation by the Commissioner of Income Tax (CIT) reasoning that delay in filing the appeal could not be explained by the assessee.

The bench consisting of Sanjay Garg, Judicial Member and Rajesh Kumar, Accountant Member observed that “The Assessing Officer has not granted the credit of TDS of Rs. 79,028/- which was apparently and undisputedly to be given to the assessee as this amount is duly appearing in the form 26AS. The CIT(A) dismissed the appeal of the assessee on the ground of being late without deciding the issue on merits. We also note that a rectification petition moved by the assessee before the AO dated 20.1.2020 requesting the AO to grant the credit of TDS of Rs. 79,028/- is also pending before the AO. Considering the facts and circumstances in totality, we are of the considered view that the assessee is entitled to credit of TDS which was denied in the intimation u/s 143(1) of the Act.”

Accordingly, the matter was restored by the Bench  to the file of the Assessing Officer with the direction to verify and allow the credit of TDS after affording a reasonable opportunity of hearing to the assessee.

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