Timely application for rectification under section 154 of the Act is mandatory; failure to comply results in denial of claims.

आदेश/ORDER

PER PRABHASH SHANKAR [A.M.] :-

Present appeal emanating from the appellate order dated 30.09.2024 is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to order u/s. 154 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 09.08.2021 as passed by the Income Tax Officer, Ward-15(1)(1), Mumbai for the Assessment Year [A.Y.] 2012-13.

2. The grounds of appeal are as under:-

1. The Learned CIT(A) erred in confirming the order passed u/s 154 of the Income Tax Act, 1961 which is bad in law.

2. The Learned CIT(A) further erred in confirming the finding of the Learned Assessing Officer for rejecting the application for giving credits of the tax deducted at source and issue a refund on account of more taxes paid.

3. The Learned CIT(A) further erred in confirming the finding of the Learned Assessing Officer that the appellant in liable for levy of interest u/s 234B of the Income Tax Act, 1961 .

4. The Learned CIT(A) further erred by not considering the submission made by the appellant company vide letter dated 09- 08-2024 and merely relied on the letter dated 26-10-2020 in the order.

5. The Learned CIT(A) erred in not considering the two findings of the Jurisdictional Supreme Court of India 261 ITR 367 & 164 taxmann.com 548 and CBDT Circular No. 551, dated 23-01-1990. According to this if the taxes paid including TDS paid are more than the tax liable to be paid by the appellant company the excess has to be refunded to the appellant.

3. Facts culled from the order reveal that the assessee had requested the ld. Assessing Officer by way of application u/s 154 of the Act for granting TDS credit of two TDS certificates which were not considered in the assessment order as were not available on income tax portal in Form 26AS at the relevant time. However, the AO granted credit of only TDS of Rs. 9,57,145/- while rejecting the claim of credit for the TDS of Rs. 51,39,779/-. The relevant extract of the rectification order is reproduced as under:-

“The assessee company has filed letters dated 29.10.2020 and 10.02.2021in this office stating therein that credit for TDS of Rs.51,39,779/- was not given while completing the assessment u/s.143(3) for A.Y. 2012-13 and therefore, requested to issue refund after giving credit for the same which as per the assessee is reflecting in 26AS.On verification of the record, it is seen that the assessment u/s. 143(3) for A.Y. 2012-13 was completed on 25.02.2015. As per provisions of section 154(7) of the Act, no amendment u/s. 154 of the Act can be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed. In the instant case the order u/s.143(3) was passed on 25.02.2015 and the assessee has not made any application for rectification within the time limit prescribed in sec.154 of the Act. In view of the above, the assessee’s request for giving credit to TDS of Rs.51,39,779/- cannot be considered at this stage and, therefore, the same is hereby rejected.”

4. Concurring with the AO, the ld.CIT(A) held that the order u/s 143(3) was passed on 25.02.2015 and the assessee had not made any application for rectification within the time limit prescribed in section 154. Thus, the appeal was dismissed by him.

5. Before us, it is submitted by the ld.Authorised Representative that the assessee filed its return of income declaring a loss of Rs 27,68,76,055/-.Assessment order u/s 143(3) dated 25/02/2015 was passed by accepting the returned loss. In the computation sheet attached to the order TDS Credit of Rs. 5