₹26 Lakh Shortfall in Permitted TDS: ITAT Directs AO to Allow Full Claim to Schindler India after Verifying Form 26AS [Read Order]
The Bench noted that the Departmental Representative abstained from making any specific challenge towards the contentions of the assessee, and allowed the TDS claim
The Income Tax Appellate Tribunal (ITAT) Mumbai Bench recently directed an Assessing Officer (AO) to allow elevator and escalator manufacturing giant Schindler India Private Limited (Schindler) to claim the entire Tax Deducted at Source (TDS) amount of ₹26,36,208 following due verification of Form 26AS.
Schindler India had instituted two appeals before the ITAT, pertaining to the assessment years (A.Y.) 2013-14 and 2014-15.
Besides the issue of TDS credit shortfall, Schindler India’s appeals involved several other grounds, including transfer pricing adjustments on royalty and management charges, additions related to provisions for bad and doubtful debts, disallowance of employee provident fund contributions, denial of MAT credit, levy of interest and penalty proceedings.
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Numerous grounds were raised by the appellant before the Tribunal, however not all of them were pressed; some stood remanded for further verification or were dismissed.
One of the grounds raised by Schindler pertained to a shortfall in TDS credit recorded by the AO as against the amounts reflected in the company’s Form 26AS for Assessment Year 2013-14.
Schindler raised concerns that the AO had only allowed a TDS claim amount of ₹11,53,59,382 as compared to the TDS credit amount of ₹11,79,95,590 reflected in Form 26AS - effectively lowering the TDS claim amount by ₹26,36,208.
Chandani Shah and Nidhi Agarwal appearing for Schindler India contended that the credit as per Form 26AS was accurate and sought directions to the AO to allow necessary TDS credit as per Form 26AS.
Meanwhile, Ajay Chandra appearing for the Revenue did not raise any specific objection to the claim beyond the discrepancy in credit reconciliation.
After hearing submissions and examining the relevant records, the two-member Bench of the Mumbai Income Tax Appellate Tribunal constituted by Vikram Singh Yadav, Accountant Member and Sandeep Singh Karhail, Judicial Member paid heed to Schindler India’s claim of additional TDS than was permitted.
Noting that the Departmental Representative of the Revenue did not raise any specific objections towards the contentions of the assessee, ITAT allowed the appeal on this ground for statistical purposes.
Furthermore, the Bench directed the Assessing Officer to allow the necessary TDS credit after carrying out due verification of the claims made.
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