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2016 (4) TMI 569 - AT - Income TaxTDS credit to the assessee - CIT(A) allowed the claim - Held that:- CIT(A) by considering Income Tax (8th Amendment) Rules, 2011, observed that in the case of the assessee, the payment for work contract was made to the assessee by Bangalore Metro Railway Corporation(deductee); the assessee recorded the receipts of ₹ 69,97,50,697 in its books as its turnover; that what is relevant for purposes of S.199 and Rule 37B(2)(i) is whether the contract receipts formed part of the income computation of the assessee; and that the fact that the contract receipts were given credit in the Profit & Loss Account of the assessee. He further observed that there is no requirement in the law that the assessee itself should execute the works and it is not possible for any person, leave alone, a legal entity like a consortium, to physically execute mammoth contracts running into cores on its own. He also observed that the very fact that the assessee engaged IVRCL to execute the works does not take away the fact that the contract receipts constitute its turnover and the income therefrom was assessable in the hands of the assessee. It is also observed by the learned CIT(A) that it is irrelevant whether the project resulted in a profit for the assessee or whether the assessee chose to sub-contract it to IVRCL on a no-margin basis. With these observations and also by following the decision of the jurisdictional High Court in the case of CIT V/s. Bhooratnam & Co.(2013 (1) TMI 478 - ANDHRA PRADESH HIGH COURT ), the CIT(A) directed the Assessing Officer to give credit for the TDS to the assessees. We concur with the reasoning given by the CIT(A) for allowing the claims of the assessees for TDS credit. - Decided in favour of assessee
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