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2022 (11) TMI 585 - AT - Income TaxNon-grant of credit of tax deducted at source - HELD THAT:-The assessee claimed the corresponding TDS credit in the impugned assessment year. Since the payment was released by Reliance Industries Ltd. in the subsequent assessment year after deduction of tax at source, the TDS amount was reflected in Form 26AS for assessment year 2017-18. In fact, the TDS certificate issued by Reliance Industries Ltd., TDS amount was shown for assessment year 2017-18. To a specific query raised by us, learned counsel appearing for the assessee made a statement at the Bar that neither the assessee has claimed TDS credit for the amount in dispute in assessment year 2017-18 nor AO has granted any such credit. On a perusal of Rule 37BA, it is observed that TDS credit has to be granted in the year in which the corresponding income is taxable. As per the accounting principle followed by the assessee, the income relating to the TDS is taxable in assessment year 2016-17. In fact, the assessee has offered the amount to tax in assessment year 2016-17. That being the factual position emerging on record, the assessee must get credit for the TDS in the impugned assessment year. More so, when the assessee has claimed that the TDS credit for the amount in dispute has not been granted in assessment year 2017-18. We direct the AO to grant credit for TDS to the assessee after factually verifying that credit for such TDS has not been granted to the assessee in assessment year 2017-18. Assessee appeal is allowed.
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