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2014 (9) TMI 2 - HC - Income TaxClaiming TDS credit whereas interest income was not recognized following cash basis of accounting - accrual of income – Held that:- By adopting the cash system for this component of his returns, the appellant did not pay any tax on the interest payable to him by the 1st company, on the ground that the amount has not been paid at all - The 1st company made TDS in respect of the amount payable to the appellant as interest and issued certificate - The assessee wanted to use the certificate in its entirety – assessee cannot be permitted to blow hot and cold at one and the same time - If no TDS was affected and interest was not paid, he would not have been under an obligation to show the amount of interest in his returns, much less to pay tax - once TDS is affected, he cannot be permitted to use the certificate to cover other amounts even while refusing to show the amount of interest in his returns. Since the appellant has adopted the cash system and he did not receive the interest regarding which the TDS was affected, the TDS amount deserves to be treated as income. However, the attempt made by him to treat that amount as tax for the corresponding amount, cannot be permitted – Decided partly in favour of Assessee.
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