Inadvertence on the part of the assessee to claim the credit for the advance tax while filing its return of income: AO is duty bound to give credit in the regular assessment
Here is one case of denial of credit of advance tax paid by assessee during assessment proceeding. AR submitted that the assessee has filed an application before CBDT u/s 119(2)(b) for condonation of delay in claiming the advance tax credit, which is pending consideration, and also placed on record a copy of the challan payments of advance tax as well as relevant extracts of Form 26AS wherein the aforesaid payment is duly reflected.
The case detail is as under:
ITAT MUMBAI :_DAMCO INDIA PVT. LTD. VERSUS COMMISSIONER OF INCOME TAX (APPEALS) , DELHI, .- ITA no.140/Mum./2022
Dated.- August 10, 2023
ITAT held as under:
We have considered the submissions of both sides and perused the material available on record. From the perusal of the challan of payment of advance tax, we find that an advance tax of Rs. 44 lakh was paid by the assessee on 14/06/2012, and an advance tax of Rs. 66 lakh was paid by the assessee on 13/09/2012. We find that the aforesaid payments are duly reflected in the relevant extracts of Form 26AS furnished by the assessee. It cannot be disputed that the claim made by the assessee was limited to the grant of credit of the aforesaid advance tax paid during the year under consideration and the same doesn’t pertain to fresh claim of any allowance/deduction. It is not a case wherein the assessee sought credit of TDS which needs to be verified with documentation and correlated with the corresponding income.
Further, section 219 of the Act also mandates that the credit of advance tax shall be given to the assessee in the regular assessment.
Thus, the inadvertence on the part of the assessee to claim the credit for the advance tax while filing its return of income or filing the revised return of income in this regard does not absolve the AO from its statutory duty as per section 219 of the Act to grant the credit in the regular assessment, particularly when the said amount is duly reflected in Form 26AS which forms part of the record of the Revenue.
Therefore, we are of the considered view that the AO erred in not rectifiying this apparent mistake when the same was pointed out by the assessee vide its application under section 154 of the Act.
Accordingly, we direct the jurisdictional AO to grant the credit of advance tax of Rs. 1,10,00,000 paid by the assessee during the financial year 2012-13. As a result, the impugned order passed by the learned CIT(A) is set aside and the grounds raised by the assessee are allowed.
In the result, the appeal by the assessee is allowed.
The copy of the order is as under: