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2015 (11) TMI 284 - HC - Income TaxEntitlement to the TDS without offering the corresponding income to taxation by declaring it as total income - vendor had billed M/s Relcom Engineering Pvt. Ltd. ("REPL"), its sister company, for the work but had mistakenly mentioned its (assessee’s) PAN in the TDS certificate, thus inadvertently crediting its TDS account in the 26AS statement, which is PAN based. Held that:- The assessee fairly admitted throughout the proceedings for its TDS claim of ₹ 1,20,73,097/- that the benefit of such claim has not been availed by M/s. REPL. Therefore, the revenue, having assessed M/s REPL’s income in respect to such TDS claim cannot now deny the assessee’s claim on the mere technical ground that the income in respect of the said TDS claim was not that of the assessee, given that M/s Relcom (the assessee) and M/s REPL are sister concerns and M/s REPL has not raised any objection with regard to the assessee’s TDS claim of ₹ 1,20,73,097/-. The provisions of Rule 37BA of the Income Tax Rules, 1962, which envisions grant of TDS credit to entities other than the deductee (herein, M/s REPL). We must clarify that we are not oblivious of the fact that Rule 37BA is not directly applicable in the facts of this case. The reliance placed on Rule 37BA is merely to demonstrate that in not all circumstances is TDS credit given to the deductee. This Court relies upon the well-settled dictum in [Sardar Amarjit Singh Kalra v. Pramod Gupta, (2002 (12) TMI 607 - SUPREME COURT)]. Therefore, the revenue’s contention that the assessee, instead of claiming the entire TDS amount, ought to have sought a correction of the vendor’s mistake, would unnecessarily prolong the entire process of seeking refund based on TDS credit. - Decided against the revenue
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