IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER AND SHRI Dr. DIPAK P. RIPOTE, ACCOUNTANT MEMBER Assessment Year : 2023-24 Vinayak Sudhir Diwan, Income Tax Officer, S.No. 45-11, 107 B Ward-67(92), Saurabh Society, vs. Aayakar Sadan, Near Navsahyadri, Karve Bodhi Tower, Nagar, 548/2B, Salisbury Park, Pune-411052 Gultekdi, PAN : AKOPD8153F Pune-411037 (Appellant) (Respondent) Assessee by : Shri Narendra Joshi Revenue by : Shri Madhukar Anand, JCIT (through virtual)

Date of hearing : 07-05-2026 Date of pronouncement : 18-05-2026 / ORDER आदेश PER Dr. DIPAK P. RIPOTE, A.M:

This is an appeal filed by the assessee against the order of ADDL/JCIT (A)-2, Gurugram u/s. 250 of the Income Tax Act, 1961 („the Act‟), for Assessment Year 2023-24 on 29/12/2025, emanating from Order u/s 143(1) of the Act, denying the Credit for Tax Deducted at Source to the Assessee.

2. Ld.AR filed paper book, wherein it was submitted as under:

“Grounds of Appeal - U/S 154.

1) Wrong filling of income tax return, without availing credit of TDS done -

The appellant had not claimed the refund based on the TDS credit by mistake, however while processing the return u/s 143(1) the Assessing authority erred in not giving the due credit of the taxes deducted and reported against the PAN of the aseessee. As per Sec 143(1) of the income tax act Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax, interest and fee, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self- assessment and any amount paid otherwise by way of tax, interest or fee As per Sec 143(1) above, the intimation shall be sent to the assessee after calculating the total income of the assessee by correcting the arithmetical errors incorrect claims, disallowing losses wrongly claimed, disallowing expenditure wrongly claimed, addition to income appearing in Form 26AS of the assessee, the tax shall be computed on the basis of such total income assessed and sum payable to the assessee shall be determined after adjustment of tax deducted at source, any advance tax paid.

Here the assessing officer is supposed to compare the total income / Loss claimed by the assessee with the income appearing in Form 26AS, as well as the Tax deducted at source claimed by the assessee in return of income should be compared with the TDS appearing in Form 26AS. The appellant by mistake did not claim the refund of taxes deducted as per Form 26AS, however, the Assessing Authority also has erred in not taking cognizance of the TDS credit reflected in Form 26AS. Appellant thus requests your good self to direct the Assessing Authority to give due credit of TDS done for the assessment year in question and process the refund accordingly.

3. In this case the assessee filed return of income for AY 2023-24 u/s 139(1) of the Act. Inadvertently. assessee failed to claim credit for Tax Deducted at Source (TDS) in the Return of Income. The Return of Income was processed u/s 143(1) by the Centralized Processing Centre (CPC) of Income Tax on 19/02/2024 raising a Demand of Rs.1,47,490/-. Aggrieved by the Order u/s 143(1) the assessee filed an appeal before Commissioner of Income Tax (Appeal)[CIT(A)].

4. The ADDL/JCIT(A) held as under :

“ 4.6 As per the provisions of section 143(1) of the Act, the Assessing Officer (through CPC) is empowered to make adjustments only on the basis of arithmetical errors, incorrect claims apparent from information in the return, or disallowances specifically provided under the said section.