Unable to identify relevant Income disclosed in  Income Tax Return for claim of TDS: ITAT directs Readjudication [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi bench directed readjudication of matter due to an inability to identify the relevant income disclosed in the Income Tax Return for the claim of Tax Deduction at Source.

The assessee, General Insurers Public Sector Association of India (GIPSA), was incorporated on 07/11/2000 as an Association of Persons. The aims and objects of GIPSA focus on providing the PSGICs a platform for formulating policies on matters of common interest, with a view to adopting a uniform approach in implementation and also representing with authorities like the Insurance Regulatory Authority of India, Parliamentary Committees, Comptroller and Auditor General, and Central Vigilance Commission on matters common to all PSGICs.

The assessee filed a Return of Income showing an income of INR 38,380/- and a Tax Refund of INR 18,22,370. The appellant has been denied the credit of TDS by CPC, Bengaluru, claimed in the Return of Income, as the CPC was unable to identify the relevant income disclosed in the Income Tax return for the claim of TDS.

Aggrieved, the assessee filed a further appeal before the CIT(A), dismissed the appeal, and therefore filed another appeal before the tribunal.

The assessee has claimed TDS in the Income Tax Return (ITR) of INR 18,34,346/-, being the aggregate of Assessment Year 2020-21 INR 4,11,857 & INR 14,22,489 Assessment Year 2021-22.

Ram Sahni, Counsel for the assessee, submitted that the claim of TDS duly reconciled with the turnover disclosed in the Income Tax return for Assessment Year 2021-22 justifying the genuineness of the claim of TDS and the refund due to the assessee.

Atiq Ahmed, Counsel for revenue, argued that the factum of disclosure of the income on which the TDS has been deducted in the ITR can be examined by the Jurisdictional Assessing Officer, and the submissions of the assessee could be examined by the JAO.

Further argued that the CBDT, to bring uniformity in the action of CPC after understanding the problem faced by Assessee/Taxpayers with respect to the claim of TDS, has come out with a notification no 637 (E.) dated on 30th Aug 2023, notifying a Form 71 enabling the Appellant for a refund.

After reviewing the facts and records, the single-member bench of Dr. B. R. R. Kumar (Accountant member) remands the matter to the file of the A.O. for the limited purposes of verification and reconciliation with respect to the TDS claim.

To Read the full text of the Order CLICK HERE

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