TMI Blog2015 (9) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that:- The assessee has not filed any supporting document in support of his contention that the provision is reversed in the subsequent year and the income is offered. He has not even mentioned the assessment year in which the provision is reversed. In the above circumstances, we decline to issue any direction so far as the other year is concerned. However, the assessee will be at liberty to put up the proper claim in the year in which the provision is reversed and the income is offered. With this remark, we sustain the addition - Decided against assessee. Disallowance of credit for TDS - AO did not allow the credit of TDS on the ground that the tax has been deducted on the rent received by the assessee - Held that:- The identical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Counsel for the assessee was fair enough to admit that this issue is covered against the assessee by the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Gujarat State Road Transport Corporation, reported in (2014) 366 ITR 170 (Guj). Respectfully following the same, we reject Ground No.1 of the assessee's appeal. 4. Ground No.2 of the assessee's appeal reads as under:- 2. On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming disallowance of ₹ 5,51,327/- made by the Assessing Officer by disallowing provision for Cess on royalty. 5. At the time of hearing before us, it is submitted by ld. Counsel that during the accounting year relevant to assessment year u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the same amount i.e. ₹ 5,51,327/-. Therefore, if the addition is sustained in this year, then suitable direction may be given in the other year wherein this provision is reversed. However, the ld. Counsel for the assessee has not filed any supporting document in support of his contention that the provision is reversed in the subsequent year and the income is offered. He has not even mentioned the assessment year in which the provision is reversed. In the above circumstances, we decline to issue any direction so far as the other year is concerned. However, the assessee will be at liberty to put up the proper claim in the year in which the provision is reversed and the income is offered. With this remark, we sustain the addition of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educted at source from the amount of income should be allowed simultaneous with the event of chargeability of such income to tax. So once the year of chargeability of the amount received in the nature of income is determined, the credit for tax deducted has to be allowed to the payee in such year. This is the only mandate of section 199. This section basically deals with the question of determination of the year in which the credit for the tax deducted at source should be allowed. The object of this section is to avert the situation of claiming credit of the tax deducted at source in the year of assessee's choice. That is why it has been made clear that the credit should be allowed in the year in which the income on which such tax has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. The AO has unequivocally held that the amount is not chargeable to tax in the hands of the assessee. The finding of the AO is not that such receipt is liable to tax in the hands of the assessee in a later or an earlier year. Rather it is that the amount received by the assessee is not at all chargeable to tax either in the current year or in an earlier or a later year. If the AO had held that the amount received by the assessee as chargeable to tax in a later or an earlier year, then of course, the assessee could not have validly claimed the credit for tax deducted at source against its income for the current year. As the amount on which tax was deducted at source is not at all chargeable to tax, then the command of section 199 will hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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