TMI Blog2022 (10) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... As gone through the decision of the ITAT, in the case of the assessee itself [ 2020 (2) TMI 21 - ITAT MUMBAI] , it is observed that the ITAT has decided the issue in fovour of the assessee in accordance with the provisions of Sec. 199 r.w.rule 37BA(3) of the Act. The point of time at which the benefit of TDS is to be given, is governed by sub-rule (3) of Rule 37BA, which unequivocally provides through clause (i) that the credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable‟. It is, ergo, abundantly clear from the mandate of Rule 37BA(3)(i) that the benefit of TDS is to be given for the assessment year for which the corresponding income is assessable. As income on which tax was deducted at source, is patently assessable in the year under consideration, we hold that the benefit of the TDS should also be allowed in the same year, namely, the year under consideration. Appeal of assessee allowed. - SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER For the Appellant : Akram Khan Siddhant Raichura For the Respondent : Harmesh Lal ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a result of which the said tax was included in the TDS return of the subsequent financial year. Therefore, the ld. CIT(A) held that in assessee s case the tax had not been deducted by the deductor in the relevant year, therefore, the claim of the assessee for TDS was not acceptable. 4. During the course of appellate proceedings, the ld. Counsel submitted that in the case by the assessee itself for A.Y. 2015-16 the ITAT, Mumbai had adjudicated the similar issue on identical facts in favour of the assessee vide ITA No. 5562/Mum/2018 for A.Y. 2015-16, dated 8.01.2020. The ld. Counsel has also referred provision of Sec.199 r.w.rule 37BA of the I.T. Rule 1962 in support of its claim. On the other hand, the ld. D.R. supported the order of the CIT(A). 5. Heard both the sides and perused the material on record. Without reiterating the facts as elaborated above the assessee claimed that the corresponding amount has been fully offered to tax, therefore, it was entitled to entire TDS credit of Rs. 17,80,18,807/- as claimed in the return of income as per the provisions of Sec. 199 r.w.rule 37BA(3) of the I.T. Rule 1962. The assessee has also submitted that it has not claimed such TDS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority. (2) (i) where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee: Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax referred to in sub-rule (1). (ii) The declaration filed by the deductee under clause (i) shall contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such, 'person. (iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich as claimed by the assessee pertains to its duly accounted for sales/receipts for the year under consideration i.e. A.Y 2015-16, had been declined by the lower authorities. Our aforesaid view that as per section 199(1) r.w.r 37BA, the credit for the tax deducted at source has to be allowed to the assessee in the year in which the correlating income is assessable is fortified by the order of a co-ordinate Bench of the Tribunal viz. ITAT, Pune, B‟ Bench in the case of Mahesh Software Systems P.Ltd Vs. ACIT, Cir-11(2), ITA No. 1288/Pun/2017, dt. 20-09-2019 for A.Y 2011-12. In the said case, it was observed by the Tribunal, as under: 4. We have heard both the sides and gone through the relevant material on record. A copy of the Sale register of the assessee has been placed at pages 46 and 47 of the paper book depicting total sales for the year under consideration at Rs. 3,69,53,687.33. This amount of turnover of Rs. 3.69 crore includes the invoice dated 28-03-2011 amounting to Rs. 80,10,000/- raised on Ashoka Leyland. It is in respect of this amount of invoice Rs. 80,10,000 plus other taxes etc. totalling to Rs. 84,10,000/-, that Ashoka Leyland deducted tax at source amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons for giving credit to such person. (iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of (i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority: and (ii) the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessable income in the said year. Accordingly, we restore the matter to the file of the A.O, with a direction to allow the short/deficit credit of TDS of Rs. 45,41,995/- to the assessee in the year under consideration i.e A.Y 2015-16. Before parting, we may herein observe, that the A.O before allowing the credit of the TDS of Rs. 45,41,995/- shall verify the veracity of the claim of the assessee that the sales/receipts corresponding to the TDS credit of Rs. 45,41,995/- were accounted for by it during the year under consideration viz. A.Y. 2015-16. Also, as a word of caution, the A.O shall take necessary steps in order to ensure that no TDS credit of the aforesaid amount of Rs. 45,41,995/- is/was availed by the assessee in the immediately succeeding year i.e A.Y 2016-17 in which the same is reflected in its Form 26AS . Following the decision of ITAT in the case of the assessee itself as elaborated above we direct the A.O to allow the claim of the assessee. Accordingly all the grounds of appeal of the assessee are allowed. ITA No.1293/Mum/2022 6. As the facts and the issue involved in this appeal are the same as supra in ITA No. 1292/Mum/2022, therefore, applying ..... 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