Shree G. T. Sales Vs DCIT/ACIT-1(1) (ITAT Indore)
The Income Tax Appellate Tribunal (ITAT), Indore Bench, allowed the appeal of the assessee for statistical purposes and remanded the matter to the Assessing Officer for verification of Tax Deducted at Source (TDS) credits claimed by the assessee for Assessment Year 2019-20.
The dispute originated from an intimation order passed under Section 143(1) of the Income Tax Act dated 17.02.2020 by CPC Bengaluru, wherein a demand of Rs.4,27,238 was raised. The assessee had declared total income of Rs.33,95,889 and claimed TDS credit of Rs.9,67,280. However, CPC matched only Rs.6,02,418 and treated Rs.3,64,862 as unmatched TDS, resulting in denial of credit and consequential tax demand.
The assessee challenged the intimation order before the CIT(A). The appellate authority upheld the CPC action, observing that TDS credit can be allowed only when conditions under Section 199 are fulfilled, including actual deduction of tax, deposit of tax to the Central Government, and furnishing of TDS certificates. The CIT(A) noted that Form 26AS reflected TDS of only Rs.6,93,587 and therefore upheld denial of TDS credit of Rs.3,64,862 along with consequential demand.
Aggrieved by the appellate order, the assessee filed a second appeal before the Tribunal. At the hearing, the Tribunal first considered delay in filing the appeal. The assessee explained the delay through an affidavit stating that the CIT(A) order was passed electronically and was not physically served. According to the assessee, the email may have gone into the spam or junk folder, and the firm became aware of the order only upon logging into the income tax portal in June 2025. Thereafter, the appeal was filed on 10.07.2025 with a delay of around 130 days.
