TMI Blog2022 (8) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ent assessment year when the TDS is shown to have been credited in the form 26AS. As stated on behalf of the assessee, the corresponding income will not be found to be recorded and therefore such direct ion would belie the letter and spirit of Sect ion 199(3) and Rule 37BA(3) thereto. Thus, on first principles, we are inclined to agree with the stand taken on behalf of the assessee for eligibility TDS credit in the Assessment Year 2016-17 itself when income has been claimed to have accrued/arisen and included for determination to chargeable income. We note that no positive finding of the Revenue Authorities below is available to show as to whether tax credit for TDS reflected in form No. 26AS in Assessment Year 2017-18 has been claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the assessee declared an income of Rs.1,66,11,872/- for Assessment Year 2016-17 in quest ion and inter alia claimed credit for TDS amounting to Rs.16,61,185/- deducted by deductor in the subsequent Assessment Year 2017-18. The assessee claimed credit of TDS in Assessment Year 2016-17 qua the corresponding income reported in that year and not in the subsequent Assessment Year 2017-18 where the TDS was actually deducted and reflected in the annual information statement generated by the Department in form 26AS. The Assessing Officer however did not grant credit of TDS in Assessment Year 2016-17 reportedly on the premise that such credit is not reflected in form no.26AS for Assessment Year 2016-17 in question. 3. Aggrieved, the assessee p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reading of Section 199(3) r.w. Rule 37BA(3) makes the position of law clear that credit for TDS is available in the year in which the income is reported and as a corollary, should not be deferred to some other assessment year. In the instant case, the Revenue has allowed the credit in the subsequent assessment year when the TDS is shown to have been credited in the form 26AS. However, as stated on behalf of the assessee, the corresponding income will not be found to be recorded and therefore such direct ion would belie the letter and spirit of Sect ion 199(3) and Rule 37BA(3) thereto. Thus, on first principles, we are inclined to agree with the stand taken on behalf of the assessee for eligibility TDS credit in the Assessment Year 2016-17 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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