आदेश / O R D E R

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961,[ herein after referred to as the Act for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order bearingNumber:-ITBA/APLS/S/250/2024-25/1071722108(1) dated 31.12.2024 passed by the Ld. CIT(A) u/s 250 of the Act, which is herein after referred to as the “Impugned order”. The Relevant Assessment year is 2019-20 and the corresponding previous year period is from 01.04.2018 to 31.03.2019.

Factual Matrix

2.1 That as and by way of an intimation order made u/s 143(1) of the Act dated 17.02.2020 passed by the CPC Bengaluru a demand of Rs. 4,27,238/- was made. The total income was at Rs. 33,95,889/- [Rs. 16,97,787 from house property + Rs. 16,98,102/- profit & gain from business & profession]. Gross Tax liability was Rs. 10,59,518/- which was paid. However a fresh demand of Rs. 4,27,238/- was made. On page 44 of appeal memo an amount of Rs. 9,67,280/- was claimed as TDS, the amount Rs. 6,02,418/- was found matched & Rs. 3,64,862/- was found to be mismatched [ Details of unmatched tax deducted at source] hence the demand of Rs. 4,27,238/- u/s 143(1). That the aforesaid intimation order u/s 143(1) bears No. :- CPC/1920/AS/1961789557 with demand identification no. 201920 1937107129042T and that the same is dated 17.02.2020 which is herein after referred to as the “Impugned intimation Order”.

2.2 That the assessee being aggrieved by the aforesaid “Impugned assessment Order” prefers the first appeal u/s 246A of the act before the Ld. CIT(A) who by the “Impugned Order” has dismissed the first appeal of the assessee on the grounds & reasons stated therein. The core grounds & reasons for the dismissal of the first appeal were as under:-

“6. Observations, Findings and Decisions

I have carefully considered the facts of the case and the submission of the appellant. I have perused the order dated 17.02.2020 passed u/s. 143(1) of the Income-tax Act by the C.P.C, Bengaluru for A.Y. 2019-20 as well as the grounds of appeal, statement of facts, and written submission filed by the appellant. From the intimation u/s 143(1) dated 17.02.2020 passed by CPC, Bangaluru it is observed that Assessing Officer has made adjustment u/s 143(1) and denying the TDS credit for Rs. 3,64,862/- deducted by from the income and raising a demand of Rs. 4,27,240/- vide order dated 17.02.2020 in the intimation u/s 143(1) of the Income Tax Act.

7.2 Ground no.1,2 and 3 are related to disallowing TDS of Rs. 3,64,862/- and consequently raising demand of Rs. 4,27,240/- vide order dated 17.02.2020 in the intimation u/s 143(1). In this regard fact of the case and submission made. by the appellant it is perused that the credit of TDS shall be allowed in the assessment year in which the income from which tax is deducted, is assessable, has been concur. However, the assessment of income alone is not the criteria for claiming credit of TDS. The credit of TDS is admissible on fulfillment of other conditions prescribed in section 199 namely:

1. The tax deductible at source is actually deducted,

2. The Tax so deducted is paid to the Central Government and

3. A certificate of deduction of tax at source as provided under section 203 is furnished for claiming credit of TDS.

7.3 In this connection it is observed that the while processing income tax return u/s 143(1) and disallowing TDS credit of Rs. 3,64,862/-, it is pointed out by CPC shown in the 26AS/AIS of concerned assessment year and shown by the assessee in his file income tax return of AY 2019-20. It is pertinent to note that the purpose of issuing TDS certificate under Section 203 of the Act is to enable the assessee to avail credit of the tax deducted at source in the relevant assessment year. If the TDS certificate is not issued, then under Section 199 of the Act, the assessee from Whose income, tax has been deducted at source will not be entitled to