M/S S. BHANDARI & CO., C.A., JAIPUR v. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7, JAIPUR

ITA 1025/JPR/2019 | 2014-2015
Pronouncement Date: 29-11-2019 | Result: Allowed

Appeal Details

RSA Number 102523114 RSA 2019
Assessee PAN AAGFS7543C
Bench Jaipur
Appeal Number ITA 1025/JPR/2019
Duration Of Justice 3 month(s) 16 day(s)
Appellant M/S S. BHANDARI & CO., C.A., JAIPUR
Respondent DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7, JAIPUR
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-11-2019
Last Hearing Date 23-10-2019
First Hearing Date 23-10-2019
Assessment Year 2014-2015
Appeal Filed On 13-08-2019
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENC HES B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO JM & SHRI VIKRA M SINGH YADAV AM VK;DJ VIHY LA- @ ITA NO. 1025/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2014-15 M/S S. BHANDARI & CO. CHARTERED ACCOUNTANTS P-7 TILAK MARG C- SCHEME JAIPUR CUKE VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-07 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAGFS7543C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P. P. PAREEK (CA) JKTLO DH VKSJ LS @ REVENUE BY : SMT RUNI PAL (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 28/11/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 29/11/2019 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-3 JAIPUR DATED 11.06.2019 FOR A.Y 2014-15 AND THE SOL E GROUND OF APPEAL RELATES TO DENIAL OF CREDIT OF TAX DEDUCTED AT SOURCE AMOUN TING TO RS. 1 23 596/- 2. THE LD. AR SUBMITTED THAT THE ASSESSEE IS A FIRM OF CHARTERED ACCOUNTANTS AND IT FOLLOWS CASH BASIS OF ACCOUNTING AND THE PROFESSIONAL FEES RECEIVED DURING THE YEAR IS BOOKED AS INCOME AND CR EDIT OF TDS IS TAKEN CORRESPONDING TO INCOME OFFERED TO TAX AND THE REMA INING TDS CREDIT IS CARRIED FORWARD TO THE NEXT YEARS. ON PERUSAL OF THE RECORD S IT WAS NOTICED THAT AN AMOUNT OF RS. 11 LACS RECEIVED FROM M/S K.C. INDIA LTD WAS BOOKED UNDER PROFESSIONAL FEES AND DULY OFFERED TO TAX IN THE RE TURN OF INCOME. HOWEVER DUE TO AN OVER SITE BY THE ASSESSEE THE CORRESPONDING CREDIT OF TDS AMOUNTING TO RS. 1 23 596/- WAS CARRIED FORWARD TO SUBSEQUENT YE AR AND THE ASSESSMENT PROCEEDINGS WERE COMPLETED ACCORDINGLY. SUBSEQUENTL Y THE ASSESSEE MOVED ITA NO. 1025/JP/2019 M/S S. BHANDARI & CO. JAIPUR VS. DCIT CIRECLE-7 JAIPUR 2 AN APPLICATION FOR RECTIFICATION OF MISTAKE U/S 154 ON 10.03.2017 SEEKING CREDIT OF TDS IN RESPECT OF INCOME ALREADY OFFERED TO TAX AND PURSUANT THERETO THE AO PASSED THE RECTIFICATION ORDER DATED 29.09.2017 WHERE THE CLAIM OF THE ASSESSEE WAS FOUND CORRECT AND THE FINDINGS OF THE AO READS AS UNDER:- IN THIS CASE THE RETURN OF INCOME FOR AY 2014-15 W AS FILED ON 28.11.2014 ON TOTAL INCOME OF RS. 66 92 510/- CLAIM ING REFUND OF RS. 6 34 301/-. FURTHER THE ORDER U/S 143(3) WAS PASSED ON 21.11.2016 AT TOTAL INCOME OF RS. 66 92 510/- GIVING TDS CREDIT O F RS. 21 09 249/- AS PER 26AS MATCHING. THEREAFTER THE ASSESSEE HAD FILED AN APPLICATION O N 01.03.2017 TO THE UNDERSIGNED AND CLAIMED THAT REFUND HAS NOT BEEN IS SUED AS PER CLAIM IN RETURN OF INCOME. THE APPLICATION OF ASSESSEE IS CO NSIDERED CAREFULLY AND ON PERUSAL OF THE RECORD THE CLAIM OF THE ASSESSEE IS FOUND CORRECT AND CREDIT OF THE TDS IS NOW GIVEN. THEREFORE THE MISTAKE BEING APPARENT FROM RECORD I S RECTIFIED ACCORDINGLY. SUBSEQUENTLY WHEN THE ASSESSEE RECEIVED THE CHEQUE OF INCOME TAX REFUND FOR THE SUBJECT ASSESSMENT YEAR ON 03.07.2018 IT WAS N OTICED THAT EVEN THOUGH THE AO STATED IN HIS RECTIFICATION ORDER U/S 154 TH AT THE CLAIM OF THE ASSESSEE HAS BEEN FOUND CORRECT HOWEVER WHILE PROCESSING O F REFUND CLAIM CREDIT OF RS. 1 23 596/- WAS AGAIN NOT GIVEN TO THE ASSESSEE. AS SOON AS THE ASSESSEE RECEIVED THE REFUND CHEQUE ON 03.07.2018 WHEREIN TH ERE WAS SHORT CREDIT OF TDS OF RS. 1 23 596/- THE ASSESSEE MOVED AN APPEAL BEFORE THE LD. CIT(A) ON 25.07.2018. IT WAS SUBMITTED THAT THE LD. CIT(A) HA S DISMISSED THE APPEAL OF THE ASSESSEE HOLDING THAT SINCE THE ORDER U/S 154 W AS PASSED ON 29.09.2017 THERE WAS DELAY IN FILING THE APPEAL AND THEREFORE THE APPEAL OF THE ASSESSEE WAS DISMISSED AT ADMISSION STAGE. IN THIS REGARD I T WAS SUBMITTED BY THE LD. ITA NO. 1025/JP/2019 M/S S. BHANDARI & CO. JAIPUR VS. DCIT CIRECLE-7 JAIPUR 3 AR THAT AS FAR AS THE ORDER PASSED BY THE AO U/S 15 4 IS CONCERNED THE ASSESSEE PRAYER WAS ACCEPTED BY THE AO. THEREFORE THERE WAS NO CAUSE OF ACTION WHICH LIES WITH THE ASSESSEE AT THAT POINT I N TIME IN TERMS OF MOVING ANY APPEAL BEFORE THE LD. CIT(A). HOWEVER ONLY WHEN TH E ASSESSEE RECEIVED THE CHEQUE OF INCOME TAX REFUND PURSUANT THE ORDER OF S ECTION 154 IT WAS REALIZED THAT EVEN THOUGH THE DIRECTIONS HAVE BEEN GIVEN TO ALLOW THE CREDIT TOWARDS TDS HOWEVER THE SAME WAS NOT GIVEN EFFECT TO WHIL E PROCESSING THE PAYMENT TOWARDS THE REFUND CHEQUE. IT WAS ACCORDINGLY SUBMI TTED THAT ONLY ON RECEIPT OF CHEQUE THE ASSESSEE CAME TO KNOW THAT ORDERS SO PASSED BY THE AO U/S 154 HAS NOT BEEN ACTED UPON BY THE DEPARTMENT AND A CCORDINGLY ASSESSEE MOVED THE APPEAL BEFORE THE LD. CIT(A). IT WAS ACCO RDINGLY SUBMITTED THAT THERE WAS SUFFICIENT REASON FOR NOT PREFERRING THE APPEAL ON RECEIPT OF ORDER U/S 154 AND ONLY ON RECEIPT OF THE INCOME TAX REFUND T HE CAUSE OF ACTION LIES AND THEREFORE THE DELAY WHICH HAS HAPPENED IS BEYOND T HE CONTROL OF THE ASSESSEE AND THE SAME MAY BE CONDONED. ON MERITS IT WAS SUB MITTED THAT THE ASSESSEE HAS OFFERED AN AMOUNT OF RS. 11 LACS RECEIVED FROM M/S K. C. INDIA LTD. DURING THE YEAR AND THEREFORE CORRESPONDING TDS THEREON AM OUNTING TO RS. 1 23 596/- AS REFLECTED IN FORM NO. 26AS SHOULD BE ALLOWED TO THE ASSESSEE. 3. THE LD. DR IS HEARD WHO HAS OPPOSED THE SAID PR AYER OF LD. AR. IT WAS SUBMITTED THAT THERE WAS AN INORDINATE DELAY IN FIL ING THE APPEAL BEFORE THE LD CIT(A) AND THE SAME HAS RIGHTLY BEEN DISMISSED AS B ARRED BY LIMITATION. 4. AFTER HEARING BOTH THE PARTIES AND PURSUING AVAI LABLE MATERIAL ON RECORD WE NOTE THAT THE AO HAS PASSED SPECIFIC DIRECTIONS U/S 154 ALLOWING THE ASSESSEES CLAIM TOWARDS GRANT OF TDS CREDIT AND ON LY WHEN THE ASSESSEE RECEIVED THE CHEQUE TOWARDS THE INCOME TAX REFUND THERE WAS APPARENT INCONSISTENCY BETWEEN THE ORDER PASSED U/S 154 AND THE PROCESSING OF THE INCOME TAX REFUND WHEREIN THE ASSESSEE WAS NOT GRAN TED CREDIT FOR THE TDS ITA NO. 1025/JP/2019 M/S S. BHANDARI & CO. JAIPUR VS. DCIT CIRECLE-7 JAIPUR 4 WHICH WAS DIRECTED TO BE ALLOWED BY THE AO WHILE PA SSING THE ORDER U/S 154 OF THE ACT. THEREFORE WHERE THE DEPARTMENT HAS ACCEP TED THE CLAIM OF THE ASSESSEE TOWARDS SHORT CREDIT OF TDS IT SHOULD HAV E SUO-MOTO CARRIED OUT THE RECTIFICATION AND NO CAUSE OF ACTION LIES WITH THE ASSESSEE FIRM. HAVING SAID THAT WHERE THE ASSESSEE FEELING AGGRIEVED HAS MOVE D AN APPEAL BEFORE THE LD CIT(A) NO DOUBT THE ORDER UNDER APPEAL IS ORDER PA SSED BY THE AO U/S 154 AND THE APPEAL SHOULD NORMALLY BE FILED WITHIN THIRTY D AYS OF RECEIPT OF THE ORDER. HOWEVER IN THE INSTANT CASE NO FAULT LIES WITH TH E ASSESSEE AS IT WAS UNDER THE IMPRESSION THAT ITS CLAIM HAS BEEN ACCEPTED AS APPA RENT FROM READING OF THE RECTIFICATION ORDER PASSED U/S 154 AND ONLY ON RECE IPT OF REFUND CHEQUE THE ASSESSEE REALIZED THAT THE CREDIT OF TDS HAS STILL NOT BEEN GRANTED TO IT. THEREAFTER THE ASSESSEE HAS MOVED AN APPEAL BEFORE THE LD CIT(A) (ON 25.07.2018) WITHIN A PERIOD OF FEW DAYS OF RECEIPT OF REFUND CHEQUE (ON 3.07.2018). WE THEREFORE FIND THAT THERE IS A REASO NABLE CAUSE BEYOND THE CONTROL OF THE ASSESSEE IN PREFERRING THE APPEAL BE FORE THE LD CIT(A) AND THE DELAY SO HAPPENED IS HEREBY CONDONED. 5. ON MERITS WE FIND THAT IT IS UNDISPUTED FACT TH AT THE ASSESSEE HAS OFFERED AN AMOUNT OF RS. 11 LACS RECEIVED FROM M/S K. C. INDIA LTD. DURING THE YEAR. THEREFORE WHERE THE INCOME HAS BEEN OFFERED TO TAX AND BROUGHT TO TAX BY THE ASSESSING OFFICER THE ASSESSEE IS LEGAL ELI GIBLE AND WELL WITHIN ITS RIGHT TO CLAIM CORRESPONDING TDS THEREON AMOUNTING TO RS. 1 23 596/- AS REFLECTED IN FORM NO. 26AS. THE AO IS ACCORDINGLY DIRECTED TO GI VE THE TDS CREDIT OF RS. 1 23 596/- TO THE ASSESSEE. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ITA NO. 1025/JP/2019 M/S S. BHANDARI & CO. JAIPUR VS. DCIT CIRECLE-7 JAIPUR 5 ORDER PRONOUNCED IN THE OPEN COURT ON 29/11/2019. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 29/11/2019 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S S. BHANDARI & CO. JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE DCIT CIRCLE-07 JAIPUR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR ITAT JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 1025/JP/2019} VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ@ ASST. REGISTRAR