Case Law Details
Adroit Structural Engineers Pvt. Ltd. Vs. DCIT (ITAT Ahmedabad)
Introduction: In a recent case before the Income Tax Appellate Tribunal (ITAT) Ahmedabad, Adroit Structural Engineers Pvt. Ltd. contested the disallowance of TDS credit by the Commissioner of Income Tax (Appeals) (CIT(A)) for the Assessment Year 2020-21. Despite the delay in filing the appeal, the ITAT considered the matter and ruled in favor of the assessee. This article provides a detailed analysis of the ITAT’s decision and its implications.
Detailed Analysis: Adroit Structural Engineers Pvt. Ltd. filed an appeal against the order of the CIT(A) disallowing the credit of TDS amounting to Rs. 14,38,505/- for the Assessment Year 2020-21. The appeal was time-barred by 189 days, but the ITAT, considering the bona fide mistake on the part of the assessee, condoned the delay and proceeded to examine the case on merits.
The assessee argued that the TDS credit should be allowed as the corresponding income had been offered to tax in the relevant assessment year. Despite the TDS not reflecting in Form 26AS, the ITAT acknowledged judicial precedents stating that TDS credit should be allowed in the year in which the corresponding income is assessable, provided there is no double deduction claimed.
The ITAT found merit in the assessee’s argument, noting that the services and invoices were raised in the impugned assessment year. As the assessee had not claimed TDS in any prior assessment year, the ITAT ruled in favor of the assessee, directing the Assessing Officer to verify and grant relief accordingly.
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