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2022 (12) TMI 74 - AT - Income TaxCredit for TDS - Income offered on receipt basis - whether assessee is eligible to claim credit of TDS in assessment year 2016-17, when the assessee offers this income on “receipt” of the same since the assessee is following the cash basis of accounting and offers income on receipt basis? - HELD THAT:- ITAT Ahmedabad on identical set of facts in the case of Chirag M Shah [2022 (6) TMI 236 - ITAT AHMEDABAD] has also held that the assessee is entitled to get credit of TDS in the year in which he has offered to tax the professional fees income on receipt basis i.e. by following cash basis of accounting, even though the client/deductor had deducted tax in earlier years by following an “accrual” basis of accounting. ITAT Chennai Bench in the case of Supreme Renewable Energy Ltd. [2008 (8) TMI 432 - ITAT MADRAS-C] held that "when a particular income is received by assessee after deduction of tax at source and said TDS has been duly deposited with the Government and the assessee has received requisite certificate to this effect, then on production of the said certificate the assessee becomes entitled to credit of TDS, even if the assessee has not directly offered said income for tax as the assessee considers that same is not liable for tax. We are of the considered view that the assessee is eligible to claim credit for TDS in assessment year 2016-17, when such professional income has been offered to tax by the assessee on “receipt” basis, since the assessee has been consistently following cash basis of accounting since inception, even though TDS was deducted on such income in the prior assessment year 2015-16. Appeal of the assessee is allowed.
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