TMI Blog2006 (9) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... even when only one fourth of the rental income is assessed in the hands of the assessee. The learned Commissioner of Income-tax (Appeals) failed to note that proportionate income as per proviso to section 199." 3. The brief facts of the case are that Shri T.G. Veeraraghavan, a resident individual, filed his return of income on 31-12-1997 declaring total income of Rs. 1,90,810, for the assessment year 1996-97. While working out the refund due to the assessee amounting to Rs. 1,85,875, the assessee claimed a sum of Rs. 2,31,069 towards tax deducted at source. This return was processed under section 143(1)(a) and an intimation was issued on 26-2-1999. While computing the refund due to the assessee, the Assessing Officer limited the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to income chargeable to tax during an assessment year has been discussed in various provisions of the Income-tax Act, 1961, and that the provisions relating to tax deducted at source mentions income, receipt or payment relevant to an assessment year in which such income, receipt or payment is assessable in the hands of an assessee/persons entitled to receive the income, receipts and payments. According to him, it would be seen there from that the income, receipts or payments referred to therein is the income etc. included in the total income of an assessee from various heads of income and accordingly credit for tax deducted at source as per section 199 has also to be considered in relation to the income etc. includible in the total income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at source as per the certificate issued by the lessee, according to the Assessing Officer. Since the assessee had admitted only his share of income from the property income, the assessee was entitled to claim credit for tax deducted at source only to the extent of such share of income assessed in his hands based on section 199 of the Act. Thus the Assessing Officer rejected the petition filed under section 154 of the Act, by the assessee. 4. Aggrieved, the assessee moved the matter in appeal before the first appellate authority before whom similar submissions as made before the Assessing Officer were made. It was reiterated before the Commissioner of Income-tax (Appeals) that there was no specific provision in section 199 of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to para 5 of section 154 order passed by the Assessing Officer. She also pleaded that the other co-owners had not voluntarily filed any return admitting the share of property income and only they have availed the benefit under Voluntary Disclosure of Income Scheme, 1997 and hence they could not claim the proportionate tax deducted at source made on the rental income, by the lessee. On the other hand, the learned counsel for the assessee apart from reiterating the very same submissions made before the authorities below, submitted that the co-owners subsequently declared the same income under Voluntary Disclosure Income Scheme and not claimed their share of tax deducted at source. He also placed on record a Xerox copy of the notes on claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 1997-98. In other words, the amendment has been brought into the statute with prospective but not retrospective effect. In these facts and circumstances I find that the lessee has issued certificate for tax deducted at source under section 194(1) deducting the tax of Rs. 2,25,000 in the name of the assessee, Shri T.G. Veeraraghavan, even though he was only a co-owner. Before the amendment to section 199, which was brought into the statute book with effect from the assessment year 1997-98, normally credit for tax deducted at source was given to the person in whose name the certificate was issued. As rightly pointed out by the learned counsel for the assessee before the Commissioner of Income- tax (Appeals) if such full credit i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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