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2020 (4) TMI 428 - AT - Income TaxDenial of credit of TDS - Income recognition method - AO dismissed the claim of the assessee holding that the credit of TDS is to be allowed only in the year in which receipt has been reflected by the assessee as its income in its account - HELD THAT:- AO has not made any adverse inference in so far as the method of accounting employed by the assessee is concerned and has accepted that the assessee is consistently following POCM for recognizing income from construction contracts as prescribed in Accounting Standard-7 issued by Institute of Chartered Accountants of India, which is mandatory accounting standard. In its reply, the assessee has specifically mentioned that since it is following POCM, it has offered for tax the income on which it has claimed TDS during the year, in subsequent years on the basis of revenue recognized as per the consistent method of accounting followed by the assessee as per POCM. There is no mention of any such income offered in subsequent Assessment Years nor it has been verified by the Assessing Officer. Therefore, in the interest of justice and fair play, we restore this issue to the file of the Assessing Officer. The Assessing Officer is directed to verify whether the income has been recognized in subsequent Assessment Years and if found correct, credit of TDS should be given accordingly. Appeal of the assessee treated as allowed for statistical purposes.
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