Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 917 - AT - Income TaxDenial of TDS credit - accrual of income - assessee has not offered income to tax - Held that:- If a particular amount on which tax was deducted at source is not chargeable to tax, the assessee is entitled for credit for TDS. Similarly in the case on hand before us, the assessee received mobilization advance and in turn this was passed on to Essar Engineering Services Ltd for execution of sub contract, however, the whole contract got cancelled by virtue of which Essar Engineering Services Ltd refunded the assessee the entire sub contract amount of ₹ 54,04,47,510/- and the assessee in turn has to refund the entire contract amount which was agreed between the assessee and Essar projects (India) Ltd and in this circumstance, no part of income has been accrued to the assessee. In this situation, when no part of the contract has been accrued and nothing is taxable in the hands of the assessee, there is no justification in denying the credit for TDS on the ground that the assessee has not offered income to tax. The fact of cancellation of contract has not been denied by the assessing officer and it is not the contention of the assessing officer that the assessee or the sub contractor has executed a part of the contract and therefore, income was accrued to the assessee or to the sub contractor. Therefore, in the absence of any such finding by the assessing officer that the assessee or the sub contractor has executed a part of the contract, the question of accruing income to the assessee from this contract does not arise, hence in our considered view, the assessing officer should not have denied credit for TDS refund to the assessee. - Decided in favour of assessee
|