DCIT (Exemptions) Vs Deendayal Port Authority Administrative Officer (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad has upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)], allowing ₹168.61 crore TDS credit to Deendayal Port Authority Administrative Officer for AY 2019-20. The Revenue had challenged the CIT(A)’s decision, arguing that the TDS credit should be restricted to ₹165.66 crore, as initially claimed in the return. However, the assessee pointed to an updated Form 26AS, which reflected a higher TDS credit due to delayed payments and revised quarterly TDS returns filed by Port users. The CIT(A) accepted this explanation and directed the Assessing Officer (AO) to verify and allow the correct credit.
During the ITAT hearing, the Departmental Representative (DR) conceded the issue, acknowledging that the Revenue did not dispute the correctness of the TDS credit as per Form 26AS. The ITAT found no error in the CIT(A)’s decision, stating that TDS credit must be granted if the corresponding revenue has been offered to tax, subject to verification. The tribunal dismissed the Revenue’s appeal as infructuous, directing the AO to verify and grant the TDS credit accordingly. Additionally, the ITAT urged tax authorities to exercise discretion in filing appeals to avoid unnecessary litigation and judicial delays.
