2022 (11) TMI 1062 - AT - Income Tax
Credit of TDS carried over - TDS being carried forward is claimed in current financial year and adjusted against the tax liability for the year under consideration - Whether TDS was deducted in assessment year 2015-16 towards advance money received and no credit was taken as property was sold in AY 2016-17? - HELD THAT:- As in the financial year 2014-15 advance received against which TDS has been deducted and same was reflected in Form 26AS but same consideration was not received, hence, advance was not taken as income and TDS against that advance was not claimed. The assessee has carried forward to next financial year. In the next financial year 2015-16, relevant to AY.2016-17, full consideration was received and income was offered to tax and TDS was claimed. Therefore, we are of the view that these facts are to be examined by AO.
We direct the AO to examine the case of assessee and if he finds that in financial year 2015-16, if the assessee has received full consideration and income was offered to tax and the TDS which was not previously claimed in the financial year 2014-15, has been claimed by the assessee in financial year 2015-16, then TDS credit should be allowed to the assessee. Therefore, we remit the issue back to the file of AO with a direction to examine the facts as narrated by us above and if the same is found as correct the Assessing officer should allow the benefit of TDS in accordance with law. The assessee is directed to co-operate in assessment proceeding, as and when called by AO, he should file the relevant details and documents to prove his claim. This ground of assessee’s appeal is allowed for statistical purposes in above terms.