Case Law Details
General Insurers Public Sector Association of India Vs CIT (ITAT Delhi)
Introduction: This article scrutinizes an important order by ITAT Delhi in the case of General Insurers Public Sector Association of India vs. CIT. The appellant challenges the denial of TDS credit by CPC, leading to an appeal before ITAT. The ITAT directs re-examination, unraveling the intricacies of the case and delving into the CBDT’s recent notification facilitating TDS refunds.
Detailed Analysis: The General Insurers Public Sector Association of India (GIPSA) filed an appeal against the order of the ld. NFAC/CIT(A), Delhi, challenging the denial of TDS credit by CPC. GIPSA, incorporated as an Association of Person (AOP), focuses on coordinating common interests among Public Sector General Insurance Companies (PSGICs). The appeal pertains to the rejection of TDS credit claimed in the Return of Income, amounting to INR 18,34,346/- for AY 2020-21 and AY 2021-22.
The CPC, Bengaluru, denied the credit of due taxes paid, asserting an inability to identify the relevant income disclosed in the Income Tax return for TDS claim. The Commissioner of Income Tax (Appeals) affirmed the CPC’s decision, citing the lack of evidence submitted by GIPSA for TDS pertaining to AY 2020-21.
The ITAT Delhi, after scrutinizing the facts, found that the CPC’s intimation lacked details of denial or restriction of TDS credit. The Commissioner of Income Tax (Appeals) noted that the TDS claim included amounts for AY 2020-21, where GIPSA had not submitted evidence or TDS receipts. However, the subsequent conclusion stated that the CPC granted TDS credit of INR 16,14,950, contrary to the INR 14,93,584 granted in the order U/s 143(1).
The appellant provided Annexure B, explaining the TDS claim reconciled with the disclosed turnover in the Income Tax return for AY 2021-22. The ITAT considered the CBDT’s recent notification No. 637 (E.) dated 30th Aug, 2023, introducing Form 71 for TDS refunds, highlighting the challenges faced by taxpayers in TDS claims.
The ITAT, recognizing the complexity of the issue, remanded the matter to the Assessing Officer (A.O.) for verification and reconciliation. The appellant was instructed to promptly clarify any queries raised by the A.O.
Conclusion: ITAT Delhi’s decision to direct the re-examination of the denied TDS claim sheds light on the challenges faced by taxpayers. The case underscores the importance of proper documentation and evidence submission in TDS claims. Additionally, the mention of the CBDT’s notification introducing Form 71 signifies efforts to bring uniformity and ease the process for taxpayers facing TDS-related issues. The decision offers relief to the appellant for statistical purposes, emphasizing the need for a comprehensive and transparent TDS claim process.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeal has been filed by the assessee against the order of ld. NFAC/CIT(A), Delhi dated 03.08.2023.
2. The Appellant GENERAL INSURERS PUBLIC SECTOR ASSOCIATION OF INDIA (GIPSA) was incorporated on 07/11/2000 as Association of Person (AOP).
3. The Aims & Objects of GIPSA, is focused on providing the PSGICs a/platform for formulating policies on the matter of common interest with a view to adopt uniform approach in its implementation, like, Co-ordination amongst PSGICs on common HR & Technical matters and matters mandated to it; Liaison with PSGICs and DFS-MoF & other Ministries of Gol on behalf of PSGICs & vice-versa on issues as and when mandated to it; and also representation with authorities like Insurance Regulatory Authority of India, Parliamentary Committees, Comptroller and Auditor General and Central Vigilance Commission on the matters common to all PSGICs
4. GIPSA is a common internal forum created by the 4 Public Sector General Insurance Companies as its members, viz. (1) National Insurance Company Ltd; Head Office, Kolkata; (2) New India Assurance Company Ltd; Head Office, Mumbai; (3) The Oriental Insurance Company Ltd; Head Office, New Delhi and (4) United India Insurance Company Ltd; Head Office, Chennai for catering to common interests.
5. The Appellant has filed Return of Income showing an Income of IN 38,380/- and Tax Refund of INR 18,22,370/. The Present Case is before this bench as the Appellant has been denied the credit of TDS, by CPC, Bangaluru, claimed in the Return of Income, as the CPC was unable to identify the relevant Income disclosed in the Income Tax return for claim of The Ld. CIT(A) affirmed the order of the CPC which has not given credit of Due Taxes paid.
6. Facts reveal that the Appellant has Claimed TDS in Income Tax Return (ITR) of INR 18,34,346/- being aggregate of AY 2020-21 INR 4,11,857 & INR 14,22,489 AY 2021-22 (Extract of Copy of schedule TDS from Income Tax Return AY 2021-22 / Annexure-B).
7. The CPC banglore in Intimation U/s 143(31)(a) under Schedule “Computation of Restriction of TDS based on rule 37BA has not provided any details of denial / restriction of TDS credit. The ld. Commissioner of Income Tax (Appeals) at para 6 held that the Appellant has not identified the claim of TDS through evidences by quoting “Besides this amount, the TDS claimed by the appellant also included TDS pertaining to A.Y. 2020-21. Hence, this portion of TDS in which the appellant had not submitted any proof of evidence or TDS receipts was not considered”. The Commissioner of Income Tax (Appeals) thereafter concluded that the CPC Banglore has granted TDS credit of INR 16,14,950 in place of INR 14,93,584/- actually granted in the Order U/s 143(1)
8. The assessee filed Annexure B is enclosed explaining the Claim of TDS duly reconciled with the Turnover disclosed in the Income Tax return for AY 2021-22 justifying the Genuiness of claim of TDS and the refund due to the It was submitted that The CBDT to bring uniformity in action of CPC, after understanding the problem faced by Assessee / Taxpayer’s, with respect to claim of TDS, has come out with a notification No. 637 (E.) dated 30th Aug, 2023, Notifying a Form 71 enable the Appellant for a Refund.
9. The ld. DR submitted that the factum of disclosure of the income on which the TDS has been deducted in the ITR can be examined by the Jurisdictional Assessing Officer and the submissions of the assessee could be examined by the JAO. The ld. AR fairly accepted to submit the details before the JAO
10. Having gone through the issue, we remand the matter of file of the A.O. for the limited purposes verification and reconciliation. The assessee shall clarify the queries of the A.O. promptly if any.
11. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 16/11/2023.
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