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2015 (9) TMI 1421 - ITAT JODHPUR

2015 (9) TMI 1421 - ITAT JODHPUR - TMI - Reopening of assessment - entitlement for credit of TCS/TDS in respect of income earned by the AOP - Held that:- In so far as the merits of case is concerned, the issue is squarely covered by the decision of CIT Vs. Bhooratnam & Company reported at [2013 (1) TMI 478 - ANDHRA PRADESH HIGH COURT ] wherein held as under: “Where income shown in the TDS certificate was offered to tax by the assessee then TDS credit is allowable on the basis of TDS mentioned in .....

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he ld. D.R. by bringing any cogent material on record. Accordingly, we do not find any reason to interfere with the conclusion arrived at by the ld. CIT(A) in directing the AO to allow credit of TCS/TDS issued in the name of individual members in the hands of the assessee-AOP after due verification and satisfaction. Facts and circumstances being pari materia similar in all the cases of all the assessees, following the reasons given hereinabove, we dismiss all the appeals of the Revenue.

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, which was not come within the purview of section 147 of the IT Act, 1961, as the excess credit of TCS/TDS is not the part of income of the assessee. Hence, the essential precondition of section 147 of the IT Act, 1961 has not been fulfilled in the assessee’s case. There is no variation in the income even after passing of order u/s 143/147 of the Act. Since there is no escapement of income which has been brought within the tax net after reopening, there is no justification for reopening of asse .....

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t the order of the CIT(A)-I, Udaipur dated 30.04.2015 all pertaining to A.Y. 2009-10 in the matter of order passed u/s 147/143(3) of the Income-tax Act, 1961 [hereinafter referred to as the Act , for short]. 2. Rival contentions have been heard and records perused. Common grounds have been taken in all the appeals of different assessees under consideration. Facts and circumstances in all the cases are same and since the issues involved are common, we are adjudicating upon them by this consolidat .....

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contract i.e. Rajsamand region. That the AOP had been constituted much before the award of contract to the AOP by the members interested to do the liquor business agreed by and between them. It is also pertinent to state here that at the time of formation/constitution of the AOP, it was mutually decided by & between the members of the AOP that the all shops awarded in the name of members shall be treated as the shops of the AOP. Further, all the income/revenue & expenditure with relates .....

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rce of the assessee AOP is from sale proceeds of Country Liquor, IMFL & Beer of the individual shops awarded in the name of its AOP members. According to the terms & conditions of the AOP, all the purchases, sales & expenses in respect of individual s shops awarded in the name of below member s of the AOP are taken in this Main AOP and accordingly credit of these TCS/TDS certificates in respect of this shops has taken by the main AOP in its Income Tax Return. Thus, in the assessee s .....

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bers as well as the TCS of these shops has also taken by the AOP in its IT return for the relevant financial year. Hence, the business activities in respect of the shops allotted in the individual names of the members of the AOP were collectively treated as the business activities of the AOP. 4. After the assessment was completed u/s 143(3), the assessee-AOP s case was reopened u/s 148 of the Act dated 25-03-2014 on the basis of audit objection raised by the AG audit party. In compliance to the .....

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nst the assessed income of ₹ 14,35,550/- assessed in the original return and assessed u/s 143(3) of the Act. The assessee requested to provide the reasons recorded for reopening of assessment proceedings, which were provided to the assessee AOP as under: "Brief facts of the cases are that the assessment u/s 143(3) in this case of completed on 28-03-2011 on total income of ₹ 14,35,550.00/-. According to the provisions of the IT Act credit of TCS/TDS collected/deducted shall be gi .....

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ected pertaining to the PAN of the assessee-AOP, the TCS credit should not be given to assessee-AOP. Against the above order of the AO, the assessee approached the ld. CIT(A) and raised the ground with regard to validity of reopening u/s 147 of the Act as well as on merits of the addition/disallowance made with respect to TCS/TDS. 6. By the impugned order, the ld. CIT(A) upheld the reopening u/s 147 of the Act by observing that the AO had reason to believe that income had escaped assessment. How .....

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ll be justified that the credit of TCS/TDS certificates issued in the name of individual members should be allowed in the hands of the AOP where the income from liquor business has been assessed. Accordingly, the Ld. AO is directed to allow the credit of TCS/TDS certificates issued in the name of individual members in the hands of the AOP after due verification and satisfaction according to the risk management strategy. Hence, this ground of appeal is allowed. 7. Against the above order of the l .....

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ision of the Hon'ble Andhra Pradesh High Court in the case of CIT Vs. Bhooratnam & Company reported at [2013] 262 CTR 0405 [AP] wherein the Hon'ble High Court has held as under: Where income shown in the TDS certificate was offered to tax by the assessee then TDS credit is allowable on the basis of TDS mentioned in the TDS certificates irrespective of the fact that TDS certificate was not in assessee s name. 9. The facts and circumstances in the instant cases are exactly identical. F .....

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