Ajit Kumar Vs ACIT (International Taxation) (ITAT Bangalore)
ITAT Bangalore allowed the appeal filed by an assessee against the final assessment order passed under section 147 read with section 144C(13) of the Income Tax Act, 1961 for Assessment Year 2015-16. The assessee, an NRI individual, had not originally filed a return of income and his case was reopened after transactions were flagged under the verification module of the Insight Portal.
In response to notice under section 148A(d), the assessee filed a return declaring total income of Rs.5,04,279/- and claimed a refund of Rs.2,63,670/-. During reassessment proceedings, the assessee furnished documents relating to purchase and subsequent sale of immovable property and computed a resulting capital loss of Rs.43,04,205/-.
The Assessing Officer denied the refund, taking the view that reassessment proceedings were for the benefit of the Revenue and that a refund could not be claimed where the assessee had not originally filed a return under section 139. The DRP dismissed the assessee’s objections and the final assessment order was passed accordingly. Before the Tribunal, the assessee submitted that there was no dispute regarding the TDS deducted by the buyer and reflected in Form 26AS, and that the TDS represented income tax paid by the deductor on the assessee’s behalf. ITAT Bangalore noted that there was no dispute regarding the TDS and held that the TDS amount appearing in Form 26AS could not be treated as escapement of income since the amount was already lying with the Income Tax Department.
The Tribunal held that the TDS credit was eligible to be set off against any tax liability and that, where the TDS exceeded the tax liability, the assessee was eligible for refund of the excess income tax payment. The lower authorities’ view was therefore held to be unjustified. The Assessing Officer was directed to give TDS credit/tax refund after due verification. The appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
