The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT)set aside the matter for verification by the Assessing Officer (AO) regarding the disallowance of Tax Deducted at Source (TDS) credit due to the non-inclusion of certain income in the return.
IMNU Student Activity Association,appellant-assessee,filed a return showing “NIL” income and paid taxes of Rs. 1,86,110/-. On 12.01.2024, an intimation under Section 143(1) was issued, confirming “NIL” income and a refund of Rs. 1,56,200/-. However, the TDS credit was granted at Rs. 1,48,769/- instead of the claimed Rs. 1,86,110/-.
The appeal before the Commissioner of Income Tax(Appeals)[CIT(A)] was dismissed as it was found that the appellant had not included Rs. 3,50,000/- and Rs. 60,000/- received from Indian Oil Corporation and M/s. PMG Integrated Communications Pvt. Ltd. in the income account, despite claiming TDS on these amounts. The CIT(A) ruled that TDS credit can only be granted if the income is reported in the return.
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The two member bench comprising Dr.BRR Kumar(Vice President) and Siddhartha Nautiyal(Judicial Member) noted that the assessee had accounted for TDS of Rs. 1,48,110/- on interest income of Rs. 14,81,117/- and Rs. 38,000/- on sponsorship income of Rs. 5,00,000/- in a separate “student activity fund account.”
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It found that the CIT(A) had erred in not granting the TDS credit. The matter was sent back to the Assessing Officer(AO) with instructions to verify the facts and grant the appropriate TDS credit.
In short the appeal filed by the assessee was allowed for statistical purposes.
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