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2014 (9) TMI 520 - HC - Income TaxTDS Credit - treatment of TDS as income - relevant assessment year - Whether the Tribunal is right in holding that the assessee is not entitled to the credit of tax deducted at source on the amounts paid on sub- contract works – Held that:- At the time when the amounts were deducted by the principal while making payments to the subcontractors, the amounts were deducted at 2% towards TDS u/s 194C of the Act – giving effect to the orders of the Tribunal, AO had deleted the amount relating to the TDS which was treated as the income of the assessee u/s 198 of the Act - The amount deducted initially as TDS either can be treated as part of the income of the assessee or as representing and relatable to the receipts which are liable to be reckoned in the process of assessment - The amount received by the assessee on account of the TDS came to be treated as part of the commission, which the assessee is entitled to receive under agreement entered into with the subcontractor – it is rightly treated as income for the respective AYs - the assessee obviously is not entitled to the benefit of treating the amounts initially deducted as TDS, as part of the tax paid by the assessee – Decided against assessee.
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