2023 (1) TMI 427 - AT - Income Tax
Credit of TDS - income earned by Late assessee for services rendered by him to the two companies before his death - such income includible in his return filed by the legal representative for AY 2013-14 which admittedly has not been done and thus escaped assessment? - Assessee has claimed TDS in respect of the impugned commission income which is not its income and not declared in its return for AY 2014-15 - credit for TDS should go the person in whose hands the income is rightfully and finally assessed to tax - HELD THAT:- AO/CIT(A) both held that the impugned commission income on which tax has been deducted at source is taxable in the hands of Late Shri Hari Shankar Singhania as represented by his legal heirs and that the legal heirs of Late Shri Hari Shankar Singhania are liable to furnish the return of income and are also liable to pay taxes in respect of the income of Late Shri Hari Shankar Singhania. We agree.
However, as stated earlier, the impugned commission income has escaped assessment as in the return of income filed by the legal representative of Late Shri Hari Shankar Singhania on 27.09.2013 for AY 2013-14, the said commission income has not been declared.
Thus we are of the opinion that in the interest of justice, it would be fair and just if we direct the Ld. AO to re-open the assessment of Late Shri Hari Shankar Singhania (Individual) for AY 2013-14 to bring to tax the impugned commission income and allow the credit of TDS.
In so far as the assessee, Hari Shankar Singhania Estate is concerned, it shall abide by the procedure laid down under section 199 of the Act r.w. Rule 37BA(2)(i) of the Income Tax Rules, 1962 as amended by the Income Tax (Eight amendment) Rules, 2011 to enable the Ld. AO to give credit of TDS in the hands of Late Shri Hari Shankar Singhania (Individual) in AY 2013-14.