The Income Tax Appellate Tribunal (ITAT), Mumbai has directed the AO to grant credit of advance tax worth rs. 1.10 crores paid by the assessee.
The assessee is engaged in the business of providing freight forwarding and supply chain management services to global customers of DAMCO Group. The assessee filed its return of income on 30/11/2013 declaring a total income of Rs. 18,58,74,940. The return filed by the assessee was selected for scrutiny and vide order dated 28/04/2017 the total income of the assessee was assessed at Rs. 38,23,56,290.
In appellate proceedings, the Tribunal granted partial relief to the assessee. Upon receipt of the order giving effect to the Tribunal’s direction, the assessee noticed that the credit for advance tax amounting to Rs. 1,10,00,000 paid was not claimed in the return of income. As the due date for filing the revised return of income had expired, the assessee approached the Assessing Officer (“AO”) by filing the rectification application under section 154 of the Act. Vide order dated 12/08/2020, the AO rejected the claim of the assessee for grant of credit of advance tax paid on the basis that the claim of the assessee is made after a lapse of almost 3 years after completion of the assessment.
The CIT(A) dismissed the appeal filed by the assessee on the basis that there is no mistake apparent from the record in the order passed by the AO giving effect to the order of the Tribunal, and thus the order of the AO cannot be interfered with under section 154 of the Act.
The taxpayer submitted that the assessee has filed an application before CBDT under section 119(2)(b) of the Act for condonation of delay in claiming the advance tax credit, which is pending consideration.
The ITAT found that the payments are duly reflected in the relevant extracts of Form 26AS furnished by the assessee.
Case Title: Damco India Pvt. Ltd. V/s Commissioner of Income Tax (Appeals)
Citation: ITA no.140/Mum./2022