Case Law Details
Rajesh Kumar Vs D.D.I.T (ITAT Delhi)
Rajesh Kumar’s appeal against the CIT(A) order before the Income Tax Appellate Tribunal, Delhi, concerning the denial of TDS credit raises crucial questions about the tax liabilities of Kachha Arthias.
The crux of the matter lies in the contention that the assessee, being a Kachha Arthia, is not liable for the tax on the income in question. The argument revolves around the interpretation of CBDT Circular No. 452 and whether the assessee should be entitled to credit for TDS deducted at the source.
Upon review, the CIT(A) held that despite the applicability of the circular, the assessee cannot benefit from erroneously deducted tax, as it was not declared as income. This decision underscores the significance of accurately reflecting income in tax filings and the consequences of discrepancies therein.
The appellant vehemently argued for the recognition of their status as a Kachha Arthia, citing the circular in their favor. Conversely, the Departmental Representative supported the CIT(A)’s stance, leading to a thorough examination of legal provisions and precedents.
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