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2023 (12) TMI 275 - ITAT DELHIDenial of TDS credit - TDS is not reflected in Form No. 26AS of the assessee - HELD THAT:- We find that there is absolutely no dispute that the interest earned on advances of the contractors were part of business receipts and since the assessee had not commenced its business, the said interest income was duly reduced by the assessee from expenditure during the construction period in this balance sheet. It is not the case of the Revenue that the said interest income would be liable to be taxed under the head income from other sources. Hence, when there is no obligation on the part of the assessee to offer the said interest income to tax as per the provisions of the Act, and the same have been duly reflected in the books of accounts and audited balance sheet of the assessee, the TDS claimed relatable to such interest receipts cannot be denied to the assessee. We find that the CPC had denied the TDS figure only on the ground that the said TDS figure was not reflected in the Form 26AS of the assessee. We find from updated Form 26AS of the assessee, the very same TDS figure of Rs. 10,80,720/- is duly reflected and hence grievance of the CPC has been duly met. Hence, as per rule 37BA for the Income Tax Rules, the assessee shall be entitled for TDS credit - We further find that the similar issue came up in the case of Trikaal Mediinfotech Pvt. Ltd. [2023 (4) TMI 88 - ITAT MUMBAI] held that when TDS is made on a particular income which is otherwise not liable for tax, the assessee is entitled for the said credit of the TOS - when the assessee has earned interest on deposit mandatory for acquisition on installation of machinery then the interest was earned by the assessee and is directly incidental to the acquisition in respect of machinery and therefore the same has been rightly reduced from the cost of the machinery, In this way the assessee has indirectly disclosed income and has offered for assessment - Appeal of assessee allowed.
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