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October 2024

For failure on the part of the payer to deduct TDS, the assessee cannot be penalised by levy of interest under section 234C.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 4 mins

43 Standard Chartered Bank (Singapore) Limited vs. DCIT

TS-615-ITAT-2024(Mum)

Assessment Year: 2021-22

Date of Order: 14th August, 2024

Sections: 234B, 234C

For failure on the part of the payer to deduct TDS, the assessee cannot be penalised by levy of interest under section 234C.

FACTS

The assessee, a company incorporated in Singapore, registered as a Category I Foreign Portfolio Investor (FPI) with SEBI made investments in debt securities and equity shares in India. The assessee filed return of income for the year under consideration on 15th March, declaring a total income of ₹75,66,62,391. The return of income filed by the assessee was processed under section 143(1) and a demand of ₹47,13,33,940 was raised as a result of TDS credit not been granted and interest

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Deduction under Sections 54 and 54F can be claimed simultaneously qua investment in the same new asset. The covenants in the sale deed executed and registered are conclusive in the absence of any evidence to the contrary. The crucial date for the purpose of determination of date of purchase for the purpose of section 54 is the date when the possession and control of the property is given to the purchaser’s hands.

Section 143(1) mandates only processing the return of income to vouch for the arithmetical error, detect the incorrect claim of expenses, losses, verify and cross check the claim made in the audit report, claim of deductions, cross verify the income declared in form 26AS or form 16A etc. and the Revenue is not allowed to go beyond that. Claim not made in the return of income, which has been processed, and time for filing revised return has expired can be made only before the administrative officers or the Board and not in an appeal.