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2016 (4) TMI 1453 - AT - Income TaxTCS Credit to partnership firm - in intimation u/s 143(1) claim of TCS was restricted as reflected in the 26AS Form of the assessee - assessee is a partnership firm doing the business of liquor and all the partners are license-holders and they have formed partnership to carry on the business of liquor - HELD THAT:- From TCS Certificate, it is found that all these TCS certificates were in the name of the persons having their own PAN Numbers, TCS collected of such persons is allowed in the hands of the assessee partnership firm. TCS was claimed in the name of different persons. The assessee is entitled to get credit of TCS. We find that as per Rule 37BA, which has been amended from 1.4.2009, in above situation, the person to whom the payment has been made or credit has been given on the basis of information relating to deduction of tax furnished by the Deductor to the income of tax authorities or the persons authorized by such authority. Rule 37BA provides that where any income on which the tax has been deducted at source is assessable in the hands of persons other than deductee, the credit for tax deducted at source, as the case may be, shall be given to the persons and not to the deductee. We find that in this case, the assessment was made u/s 143(1). Therefore, in the interest of justice and fair play, we are of the view that the matter requires verification. AO is directed to give credit of this tax, which is effective from 01.04.2009 and the new rule has been amended from 2011. Therefore, the credit may be given for 24.10.2011 to the assessee after verifying whether the credit has been claimed or not in the hands of partners. If the partners have not claimed TCS certificate, the credit may be given to the partnership firm as per the decision of Bhooratnam & Company, [2013 (1) TMI 478 - ANDHRA PRADESH HIGH COURT] - Appeal of the assessee is allowed for statistical purposes.
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