K. Venkatesan (HUF) Vs ACIT (ITAT Chennai)
Mistaken TDS on Agricultural Land: Chennai ITAT grants full credit despite non-disclosure in ITR; Tribunal Overturns Denial Based on Return Filing Discrepancy; ITAT Allows TDS Credit on Exempt Land Sale
Assessee filed its return of income declaring income of Rs.12,22,520/-. Assessee sold an agricultural land & the buyer had deducted TDS @1% Rs.10,50,000/- u/s.194IA on the sale consideration of Rs.10.50 crores. Since, the land sold was agricultural land, no TDS was required to be deducted by the purchaser & inadvertently it was deducted. Assessee has not shown the receipts as exempt income in ITR, though claimed to be exempt income, but corresponding TDS amount was claimed. CPC denied said TDS to the assessee on account of mismatch of corresponding income.
CIT(A) dismissed the appeal of the assessee noting that assessee has not shown the corresponding receipts (though claimed to be exempt) in its ITR but have asked for credit of corresponding TDS reflected in 26AS. CIT(A) held that -for any tax credit claim which is available in 26AS, the corresponding income must be shown in ITR and for exempt income, the ITR have specific schedule named “Exempt Income Schedule”. Since, assessee had not shown any such exempt income in the ITR, the action of CPC in denying the credit of TDS amounting to Rs. 10.5 lakhs on such exempt income not reflected in ITR is correct.
