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2024 (3) TMI 571 - AT - Income TaxCredit of TDS - consideration received for offshore supply of rolling stock, when no corresponding income has been offered for taxation by the assessee - AO held that credit of TDS is not allowable since the Assessee did not offer corresponding income to tax in its RoI - HELD THAT:- As per Section 199(1) of the Act, any deductions made in accordance with the foregoing provisions of this chapter and paid to the Central Government shall be treated as payment of tax on behalf of the person from whose income the deduction is made. Therefore, as per the provisions, once TDS was deducted, a credit of the same is to be given to the assessee. Considering the same, the claim of credit of withholding tax should be allowed to Assessee as per provisions of the Act. The Co-ordinate Bench of ITAT, in the case of Escorts Ltd. [2007 (5) TMI 362 - ITAT DELHI] held that once deduction of tax at source is made and the same is deposited with the Government then the assessee becomes entitled for credit of such TDS while computing the tax liability for the period irrespective of the fact that the assessee considered that he is not liable to tax in respect of the income and, therefore, does not disclose the amount of income in his return. The Income-tax Department cannot refuse to give credit merely by contending that the income has not been disclosed in the return filed by the assessee for the assessment year. Co-ordinate Bench of ITAT in the case of Supreme Renewable Energy Limited [2008 (8) TMI 432 - ITAT MADRAS-C] held that assessee is entitled to TDS even if the income has not directly been offered to tax as the same was not liable to tax. Thus we hold that the assessee is entitled to credit of TDS/Withholding tax and the consequent refunds thereof.
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