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2016 (5) TMI 1093 - AT - Income TaxRectification application regarding the credit of TDS rejected - Held that:- From going through the above decision of Hon’ble Karnataka High Court in the case of Digital Global Soft Ltd (2011 (9) TMI 206 - KARNATAKA HIGH COURT), we find that in the present appeal before us the issue is similar as the assessee has not claimed TDS in its regular return of income, because it was not in the possession of the TDS certificates and so much so, the deductor M/s. Bodal Chemicals Limited has not issued the TDS certificates to the assessee. It was only in January, 2011, i.e., after the end of the two years and nine months from the end of the relevant financial year that the assessee came into possession of the TDS Certificates issued by M/s. Bodal Chemicals Limited for ₹ 74,774/-. The appellant has submitted before the Assessing Officer that the amount on which TDS of ₹ 74,774/- has been deducted is duly shown in the financial statements submitted by it at the time of filing of return of income. We are, therefore, of the view that the assessee is very much eligible for getting credit of ₹ 74,774/- as the said amount was not a lawful amount to the Government and the assessee should not be deprived of the credit of TDS of ₹ 74,774/- for the mistake/delay made by the deductor. In the given circumstances, as the assessee was not having any possibility to revise the return u/s 139(5) of the Act, the only option left with him was to file an application u/s 154 of the Act which he did so; and therefore, ld. Assessing Officer using his inherent power u/s 154 of the Act for amending any mistake apparent on record should have examined the claim of the assessee by verifying the books of accounts of the assessee as well as the relevant ledger accounts wherein the impugned amount on which TDS of ₹ 74,774/- has been deducted, is duly reflected. We also observe that none appeared on behalf of the assessee during the appellate proceedings before the ld. CIT(A) and we are, therefore, of the view that the matter to be set aside to the file of the ld. Assessing Officer to allow the claim of TDS of ₹ 74,774/- after verifying the books of accounts and financial statements with regard to the receipt of reimbursement of expenses on which TDS of ₹ 74,774/- has been deducted by M/s.Bodal Chemicals Limited. Needless to mention that necessary opportunity of being heard to be given to the assessee to provide all necessary documents and supporting towards the claim of TDS of ₹ 74,774/-. Decided in favour of assessee for statistical purposes.
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