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CLAIM FOR TDS

anoop mehra (practice) (26 Points)

15 January 2010

AN ASSESSEE FILED HIS RETUN OF INCOME FOR A.Y. 2007-08 PREPARED ON I.T. SOFTWARE. HE DECLARED HIS ENTIRE INCOME BUT IN A RUSH TO FILE THE RETURN ON 31/07/2007, HE OMITTED TO CLAIM TDS ON INTEREST OTHER THAN INTEREST ON SECURITIES. THE DEFECT IN THE RETURN CAME TO LIGHT ON RECEIPT OF INTIMATION U/S 143(1). AN APPLICATION WAS MOVED BEFORE A.O. U/S 154 ATTACHING TDS CERTIFICATES REQUESTING CREDIT FOR TDS. THE APPLICATION REJECTED BY A.O. APPEAL PENDING BEFORE CIT(A). CAN WE GET BENEFIT U/S 203/205/199? ANY CASE LAWS AVAILABLE?

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5 Replies

Amir (Learner) (4016 Points)
Replied 15 January 2010

Dear Anoop,

u/s 254 AO is required to give reasonable of oppurtunity of beinh heared b4 rejecting assessee's claim..

On what grounds AO has rejected the claim??

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sanjay kumar ( tax consultant) (90 Points)
Replied 15 January 2010

the assessing officer has to recored reasons for refusing mistake u /s 154...if the full facts are as you haave mentioned ....and the assessing officer has denied without recording reasons ..then you have a strong case ....your appeal will succeed...

anoop mehra (practice) (26 Points)
Replied 28 January 2010

The A.O. has stated in the rejection order that since you did not claim TDS in the return, therefore,it cannot be allowed now although income was duly declared in the return filed.

sanjay kumar ( tax consultant) (90 Points)
Replied 28 January 2010

IF THE ASSESSMENT PROCEDING IS STILL CONTINUING THEN FILE THE RECTIFICATION PETITION....LET HIM REJECT ...HE IS BOUND TO RECORD REASONS FOR DOING SO...THIS IS THE BEST YOU CAN DO AT THIS STAGE ....ACTING IN AN ARBITRARY MANNER IS NOT UNUSUAL FOR THE ASSESSING OFFICER ...ANYBODY PRACTICING IS FAMILIAR WITH THIS ...DONT WORRY ...THERE LIES APPEAL WITH THE CIT ....JUST KEEP ME INFORMED....

Amir (Learner) (4016 Points)
Replied 28 January 2010

Dear Anoop, AS U HAVE MENTIONED THAT APPEAL IS PENDING BEFORE CIT(A), I M SURE THAT DECISION WILL BE IN UR FAVOUR.. AO's rejection is not tenable as per Law on the reasons mentioned..