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2023 (1) TMI 719 - AT - Income TaxTDS credit - refund of TDS reflected in his Form-26AS - tax liability was created against the firm on transfer of such asset, which was owned by firm - CPC denied such refund in its intimation dated 08.10.2018 - HELD THAT:- Claim of credit can only be considered in the hand of firm as the income is assessable in the hand of partnership firm. The assessee executed the sale deed on behalf of the firm in the representative capacity as a partner. The assessee has not filed any declaration that as per Rule 37BA the credit be given to the partnership firm. We find that there is no dispute that the TDS was deducted on the sale consideration of the asset, which was owned by partnership firm - there is no dispute that the assessee is partner in the said firm and signed the sale deed on behalf of partner in fiduciary relationship. It is also admitted fact that the TDS was credited in the account of (PAN) of assessee. From the fact of the present case, it is not clear that any tax liability was created against the firm on transfer of such asset, which was owned by firm. Thus, we deem it appropriate to restore the case to the file of assessing officer, with the direction to adjudicate the issue afresh. The assessee is also directed to move appropriate application under section 199 read with Rule 37BA for claiming the credit of such TDS with required declaration, undertaking of other condition prescribed therein. On filing such application with required declaration, the assessing officer shall decide the same in accordance with law. Needless to direct that before passing the order afresh the assessing officer shall grant proper and fair opportunity to the assessee. Appeal of the assessee is allowed for statistical purpose.
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