##PAGE1##

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

ITA No. 939/PUN/2026

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

2

ITA No. 939/PUN/2026

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. The