Manju Mithal vs CIT(A), Chennai

Parties Involved

Facts Summary

The assessee, Manju Mithal, filed her return of income for Assessment Year 2022-23 on 23.09.2022, declaring a total income of Rs.6,28,380/-. She claimed a tax deduction at source (TDS) of Rs.1,45,944/-. However, the Central Processing Centre (CPC) processed the return on 17.02.2023 and granted credit for only Rs.50,602/- of the claimed TDS. The assessee was issued a notice under section 139(9) of the Income Tax Act, 1961, stating that the gross receipt shown in Form No.26AS was higher than the total receipt shown under all heads of income on which credit for TDS has been claimed. The assessee responded that she is a kachha arhatia and the turnover is gross sales, but only the commission income is to be considered as income. The assessee argued that the amount of TDS and the amount on which such TDS is made cannot be considered as gross receipt of the assessee or income of the assessee and therefore, naturally does not match. The assessee referred to Circular No. 452 dated 17.03.1986. The assessee preferred an appeal before the learned CIT(A), but the appeal was dismissed. The assessee is now in appeal before the Income Tax Appellate Tribunal, Jodhpur.…

Legal Issues

• 1. Whether the CPC has authority to reduce the TDS claim of the assessee on account of mismatch in the TDS claimed.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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