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TMI Blog2016 (9) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... 42,889/- when the TDS certificate filed along with the return of income was not for the relevant A.Y. 2006-07 and also not in the name of the assessee. " 3. The Assessee was created on 16th March 1939 with the aim of administering the provident fund contributions of both employer and employees of Bata Shoe Company Private Limited. The affairs of the fund were to be managed by the Trustees selected from both employees and employer side. The Assessee was exempted under section 17 of the Employees Provident Funds and Miscellaneous Provisions Act ,1952 vide exemption no-E-109(4) 1/789C , Dated-4th June 1957 issued by Provident Commissioner, New Delhi. The Assessee was recognized under the Income Tax Act ,1961(Act) by Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and expenditure. The annual accounts should be drawn keeping in view the (a) Trust Deed (b) Rules of the Fund (c) Conditions imposed by Commissioner (d) Fourth Schedule to the Income Tax Act ,1961 (e) Part XII of the Income Tax Rule, 1962 (f) Instructions issued by the Board from time to time. As per Rule-74 of the Income Tax Rules,1962 "The accounts of a provident fund shall be prepared at intervals of not more than twelve months". The Assessee is complying with the provisions of Rule-74 aforesaid by preparing accounts on Financial Year basis. Audited Accounts signed on 26th September 2006 for the financial year ended on 31st March 2006 along with schedules were filed before the AO. 4. As already stated the income of the Assessee was exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d F.Y- 2005-06 from 1st April 2005 to 15th July 2005 for 105 days. The bond issuer company M/s MPVCL had deducted and deposited Tax deducted at source (TDS) on accrued interest for the F.Y-2004-05 even though interest was not actually paid and issued TDS certificate in favour of deductee whose name was in bond holders register maintained by the issuer "M/s MPVCL" as at 31st March 2005. During F.Y-2005-06 when actual interest was paid in July 2005 on 9.5% bonds issued by " M/s MPVCL" , "M/s MPVCL" had deducted TDS of Rs. 11,42,889/- on interest income of 60 bonds for the period from 16th April 2004 to 31st March 2005, as on 31st March 2005 bond holder was "M/s The C K P Cooperative Bank Ltd " as per their record. Gross Interest Income -Rs. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate of Rs. 11,42,889/- issued by "M/s MPVCL" in their return for the assessment year 2005-06 and 2006-07. 6. The AO however Vide letter Ref No-ITO /W-31(1)/KoI/Demand/ 2011-12/793 dated-17th Feb 2012, ITO rejected refund application for the reasons that the Assessee's name was not found in the TDS certificate and the year mentioned in the TDS certificate was relevant to AY 2005-06 and not 2006-07. 7. On appeal by the Assessee, the CIT(A) allowed the claim of the assessee by observing as follows :- "9. Having considered the AO's action and the submission of the appellant along with the surrounding facts and circumstances of the issue at hand, I find that the appellant cannot be denied the refund amounts under discussion as goin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AY for which such income is assessable. Sections 198 and 199 do not in any way change the year of assessability of income which depends upon the method of accounting regularly followed by the assessee. 9.2. Delhi High Court in case of Commissioner of Income Tax v. Malibu Estate [2007]164 Taxman 518 (De/h) has held that u/s 199 credit of TDS has to be given to the assessee in whose hands the income is finally held assessable even though TDS Certificates may not be in its name. Credit for TDS has to be given to the tax payer in whose hands the income is finally held assessable and that too in the year in which the corresponding income was assessable / taxed. In the instant case, the entire income starting from issue date i.e. from 16th A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herwise a legitimate claim of the appellant after following due procedure in this regard ." 8. Aggrieved by the order of CIT(A) the revenue has preferred the present appeal before the Tribunal. 9. We have heard the rival submissions. The ld. DR relied on the order of AO. The ld. Counsel for the assessee reiterated the submissions made before CIT(A) and relied on the order of CIT(A). After considering the rival submissions we are of the view that there is no merit in this appeal by the revenue. The facts with regard to the ownership of the bonds on which the interest accrued as that of the assessee is not in disputed. It is also not in dispute that the assessee was entitled to the interest on the bonds that were acquired by the assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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