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2013 (2) TMI 318 - DELHI HIGH COURTValidity of notice u/s 148 – Escaped assessment - Excessive relief - Re-opening of assessment – Reason to believe - Reason of reopening the assessment that credit for TDS was wrongly allowed in the original assessment - Assessee had claimed credit for tax deducted at source on estimated basis as TDS certificates of this amount were not available with the assessee at the time of filing return - During assessment u/s 143(3), royalty income from Indian concerns was determined and TDS was allowed by the A.O. However, as the above income was not disclosed in the income tax return, TDS credit against this income should not have been allowed Held that:- It is intended for the benefit of the assessee who had omitted to file the TDS certificate along with the return of income but subsequently produces the same before the A.O. within two years from the end of the assessment year in which the income relevant to the TDS is assessable, in which case the A.O. can amend the assessment order and grant the relief, invoking the powers u/s 154 None of the three clauses of the Explanation applies to case. Clause (a) speaks of no return having been filed; that is not the case here. Clause (b) speaks of a return having been filed without an assessment being made and the assessee had understated the income or has claimed excessive loss, deduction, allowance or relief in the return. This also is not the case here. Clause (c) has several sub-clauses and none of the situations applies to the petitioner's case. It cannot be so construed as to rope in cases where credit for TDS, which is a credit given against the tax payable and is not any allowance or deduction or loss or relief against the income chargeable to tax was erroneously given. There is, therefore, no merit in the reasons recorded by the revenue for reopening the assessment - Notice quashed – In favour of assessee
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