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2022 (10) TMI 1209 - AT - Income TaxShort TDS credit granted - tax had not been deducted by the deductor in the relevant year, therefore, the claim of the assessee for TDS was not acceptable - difference in the amount of TDS credit as per Form 26AS and amount claimed by the assessee in its return of income - CIT(A) had dismissed the appeal of the asssesse stating difference is due to the fact that the assessee’s client had booked the expenses in the same financial year in which the assessee had recognized the income, however assessee’s client had deducted tax while making payment in the subsequent financial year as a result of which the said tax was included in the TDS return of the subsequent financial year - HELD THAT:- CIT(A) has not adjudicated the claim of the assessee in accordance with the provisions of Sec. 199 r.w.rule 37BA(3) of the I.T. Rules, 1962 and also not taken into consideration the decision of ITAT in the case of the asessee itself. 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.
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