IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2024-25 Anshul Anil Goel DCIT (1) 1, Pune

1 Talera Park, Kalyani Nagar, Vs.

Pune – 411014 PAN: AAWPG2101N (Appellant) (Respondent)

Assessee by : Shri Sharad A Shah Department by : Shri Ramnath P Murkunde Date of hearing : 14-01-2025 Date of pronouncement : 27-01-2025

O R D E R

PER R. K. PANDA, VP :

This appeal filed by the assessee is directed against the order dated

27.11.2024 of the Ld. Addl./JCIT(A)-1, Chennai relating to assessment year 2024-

25.

2. Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 30.07.2024 declaring total income of Rs.38,76,29,470/- and claimed total TDS of Rs.14,53,50,759/- and TCS of Rs.25,28,802/-. The break-up of TCS claimed by the assessee was as under:

TCS of Rs.15,78,602/- collected for self

TCS of Rs.9,50,200/- collected in the hands of his minor child whose income is

clubbed in the income of the assessee.

3. During the year under consideration, the minor son of the assessee namely Master Nishkarsh Goel made a foreign investment on which the TCS was collected by the bank and form 27D was also issued by the bank. Since the entire income of the minor son of the assessee was required to be clubbed in the hands of the assessee, the assessee clubbed the income earned by the minor and also the foreign investment made by him in his return of income. Accordingly, the TCS collected in the name of the minor was also claimed by the assessee. However, the CPC while processing the ITR u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) denied the claim of TCS collected in the hands of the minor child and accordingly raised a demand of Rs.10,29,700/-.

4. The assessee filed an appeal before the Ld. Addl./JCIT(A). The provisions of section 206C of the Act were brought to the notice of the Ld. Addl./JCIT(A). It was also brought to his notice that the government has proposed to introduce a provision in section 206C to allow the Board to notify the rules for cases where credit of tax collected are given to person other than the collectee. However, to ensure that this provision is not misused, credit of TCS of the minor shall only be allowed where the income of the minor is being clubbed with the parent as under sub-section (1A) of section 64 of the Act which states that in computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child. Although this amendment was effective from 1^st day of January, 2025 it was submitted that since no mechanism is still provided to allow such TCS credit, the assessee cannot be deprived of the TCS credit of the minor child in his hands.

5. However, the Ld. Addl./JCIT(A) was not satisfied with the arguments advanced by the assessee and rejected the claim of the TCS credit of Rs.9,50,200/-

by observing as under:

―4. Decision The appellant had filed his Income tax return for the year 2024-25 on

30.07.2024 declaring a total income of RS 38,76,29,470/- claiming total TDS of Rs. 14,53,50,759/- & TCS of RS 25,28,802/-. Out of the total TCS claimed, an amount of Rs. 15,78,602/- collected for self and TCS of Rs. 9,50,200/- was collected in the hands of his Minor child whose income was clubbed with his income. It is seen from the ITR of the appellant that the income earned by him and also foreign investment made by his minor child were duly disclosed by him. As the income of his minor child was required to be clubbed in his hands, the TCS collected in his name was also claimed by the appellant.

In this connection, the Finance Minister in his Budget Speech 2024 &

Memorandum Explaining the provisions in Finance Bill 2024, wherein following has been stated (relevant portion is reproduced below).

It is, therefore, proposed to introduce a provision in section 206C of the Act, to allow the Board to notify the rules for cases wh