Savadika Retail Private Limited Vs Deputy Director of Income Tax (ITAT Delhi)
CPC restricted Assessee’s TDS credit on the ground that the turnover reported in the return did not match the turnover appearing in Form 26AS. Assessee, engaged in wholesale & retail of goods including sales through e-commerce platforms, argued that TDS was correctly claimed exactly as per Form 26AS, & any turnover difference was due to sales returns, which naturally reduce reported turnover without affecting TDS already deducted by the platforms.
ITAT noted that the issue was identical to the Hyderabad Bench decision in Gopikishan Pallod, where it was held that TDS must be allowed in full if the related income has been offered, even if turnover in books is lower due to sales returns. Tribunal held that CPC’s “proportionate TDS” approach was incorrect & based on a misunderstanding of the business model.
Held: TDS credit must be allowed fully as per Form 26AS, since Assessee has offered the entire income to tax & reconciled turnover differences with sales returns.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned Appeals are filed by the Assessee against the orders of Ld. Commissioner of Income Tax (Appeals)/Addl/JCIT(A)-1 Nashik (‘Ld. CIT(A’ for short), New Delhi dated 24/02/2025 pertaining to Assessment Years 2022-23 and 2023-24 respectively.
