Rinkoo Processors Limited Vs ITO (ITAT Ahmedabad)
Material Facts
The assessee filed its return for AY 2015-16 declaring total income of ₹93,83,540. The original assessment under Section 143(3) was completed on 10.11.2017 determining total income at ₹95,29,988. Subsequently, the assessment was reopened under Section 147 based on ITS information showing TDS of ₹3,50,000 under Section 194IA reflected in the assessee’s Form 26AS relating to an immovable property transaction.
The assessee explained that it had not sold any property but had purchased an immovable property from M/s Goyal Developers for ₹3,50,00,000. While filing Form 26QB, it inadvertently entered its own PAN in the seller’s PAN column instead of the seller’s PAN. As a result, the TDS credit of ₹3,50,000 appeared in the assessee’s Form 26AS.
Procedural History
The Assessing Officer denied the TDS credit under Section 199 on the ground that the assessee, being the purchaser, was not entitled to the credit. On appeal, the CIT(A) directed the Assessing Officer to drop the penalty proceedings but confirmed the denial of TDS credit. The assessee thereafter appealed before the ITAT.
Legal Issues
- Whether the assessee was entitled to relief where TDS credit was reflected in its Form 26AS due to an inadvertent wrong PAN entry in Form 26QB.
- Whether the reassessment notice under Section 147 was valid when the recorded reasons stated that the assessee had sold the property instead of purchasing it.
Relevant Statutory Provisions
- Sections 143(3), 147, 194IA, 199 and 250 of the Income-tax Act, 1961.
- Rule 30 and Rule 37BA of the Income-tax Rules.
Assessee’s Submissions
