Assessee entitled to credit of TDS appearing in Form 26AS & such credit cannot be denied without opportunity of hearing to assessee

Baid Trade Fina Pvt. Ltd. Vs ITO (ITAT Kolkata)

Facts in brief are that the assessee filed its return of income on 26.09.2010 claiming TDS of Rs. 79,028/- as per Form 26AS, however in the intimation/order dated 25.04.2011 u/s 143(1) of the Act, the assessee was not granted the credit of TDS without assigning any reasons therefor. The appeal of the assessee also dismissed as barred by limitation by the Ld. CIT(A) reasoning that delay in filing the appeal could not be explained by the assessee.

After hearing the rival contentions and perusing the material on record, we find that the AO has not granted the credit of TDS of Rs. 79,028/- which was apparently and undisputedly to be given to the assessee as this amount is duly appearing in the form 26AS. The Ld. CIT(A) dismissed the appeal of the assessee on the ground of being late without deciding the issue on merits. We also note that a rectification petition moved by the assessee before the AO dated 20.1.2020 requesting the AO to grant the credit of TDS of Rs. 79,028/- is also pending before the AO. Considering the facts and circumstances in totality , we are of the considered view that the assessee is entitled to credit of TDS which was denied in the intimation u/s 143(1) of the Act. Accordingly we restore the issue to the file of the AO with the direction to verify and allow the same after affording a reasonable opportunity of hearing to the assessee.

FULL TEXT OF THE ORDER OF ITAT KOLKATA

This is the appeal preferred by the assessee against the order of the Commissioner of Income Tax(Appeals)-NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 28.12.2021 for the assessment year 2010-11.

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