Question And Answer
Subject: Claim of TDS and Assessment
Querist: Manali
Answered by:
Tags: ,
Date: November 3, 2022
Query asked by Manali

Assessee is an individual engaged in business of contract. In the year 2016-17 filed the ROI in time and claimed the TDS of Rs. 310000/-.  During the course of assessment proceedings AO find that there is difference in the receipts disclosed in the profit and loss account and in statement 26AS of Rs. 62 lakhs . Assessee has given explanation that out of Rs 62 lakhs , 59 lakhs are receipts which are accounted in the year 2017_18 . AO made addition of Rs 3 lakhs and assessed income . In the year 2021, AO give notice U/Sec. 154 asking as to why entire 62 lakhs should not be added as assessee has claim the TDS in the year 2016-17 and therefore addition is required , since assessee has not responded AO passed order u/Sec 154  by making further  addition of Rs. 59 lakhs .

Assessee filed an appeal on the ground that AO is incorrect by adding 59 lakhs insteade he can disallow excess TDS . However  CIT(A) also agree  that what Assessee is claiming before CIT A is correct , however since assessee has not supported with any decision he confirmed the addition of Rs.59 lakhs.


1. Whether action of AO is correct ?

2. Whether CIT (A) is justified in Law ?

3. Whether assessee can take ground before ITAT that order passed by AO u/Sec. 154 is Bad in Law as this ground has not taken this ground .

Pl guide

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The Action of the Ld. AO nor of the Ld. CIT(A) is justified. The issue is merely on account of timing which should have been rectified by the Ld. AO or CIT(A). The assessee should approach the Tribunal and seek appropriate relief.

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