TMI Blog2017 (11) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-13. 2. The grounds of appeal are as under:- 1. That the Ld.CIT(A) 2, New Delhi has grossly erred both in law and on facts in not directing the grant of credit of TDS of ₹ 7,16,040/- in clear disregard of the order of Hon ble Income Tax Appellate Tribunal in the case of the appellant for Assessment Year 2011-12, despite specific ground and submission made by the appellant. 1.1. That the findings of the Ld.CIT(A), that the A.O is further directed to give credit of TDS strictly as per the provisions of Section 199 to be read with Rule 37BA of the I.T. Rules 1962 is vague finding and is based in disregard of the fact that the Ld. Assessing Officer , though by applying Rule 37BA of the Income Tax Rules 1962 ( Rule ) read with Section 199 of the Act give credit when he restricted the credit of TDS to ₹ 79,560/- as against credit to be allowed of ₹ 7,95,600/- and thus he ought to have followed the order of Hon ble Tribunal in the case of the appellant for Assessment Year 2011-12 and held specifically held that action of Ld. Assessing Officer was highly arbitrary, unjustified and not in accordance with law and directed thus for credit of TDS of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been taken in gross receipts. From the perusal of the reply of the assessee and TDS reconciliation submitted, it was observed that the assessee had shown professional receipts of ₹ 7,95,600/- and against the TDS claim of the same amount. During the course of assessment proceedings, the assessee was asked to explain why claim of TDS to the extent of income is not shown for Assessment Year 2012-13. The same was disallowed as per Rule 37BA read along with Section 199 of the I.T. Act, 1961 by the Assessing Officer. The Assessing Officer observed that from the perusal of Rule 37BA of the I.T Rules, 1962, it is clear that TDS credit shall be given for the assessment year for which such income is assessable. Meaning thereby TDS credit shall be allowed only when its corresponding income has been taken for taxation. Thus, the Assessing Officer held that the assessee is offering only such part of the professional income which is equivalent o the TDS claimed, the practice is totally in contravention of Rule 37BA and provisions of Income Tax Act and since, the assessee had shown professional income of ₹ 7,95,600/- he was eligible for TDS credit of ₹ 79,560/- (7,95,60 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.6185/Del./2013 which, such income is assessable. Thus, if the said rule is read, it is clear that the assessee is entitled to get credit of the tax deducted at source once such income is included in his income. The admitted facts of the case of the appellant is that the tax deducted at source has been offered as income by the appellant in his return of income and therefore, having regard to even the rules, the assessee is entitled to credit of the tax deducted at source. The assessee before the CIT(A) had provided an illustration whereby it was submitted that assuming an assessee follows cash system of accounting and raises an invoice of ₹ 100/- for the services rendered in financial year 2010-11 on his client and the said client deposits TDS of ₹ 10/- to the credit of the account of the assessee and issued a certificate of TDS to the assessee and thus, it was submitted that an amount of ₹ 10/- was since deducted in respect of the assessee, the said sum is income of the assessee which is assessable to tax. It was submitted that once an income is assessable to tax, the assessee is eligible for credit despite the fact that remaining amount would be taxable in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Peddu Srinivasa Rao (supra) has held as under: 8. We have carefully perused the provisions of section 199 of the Act and according to the pre-amended provisions of section 199, the credit of deduction made in accordance with the relevant provisions of this chapter and paid to the Central Government, shall be given for the amount so deducted on the production of the certificate furnished u/s 203 for the assessment made under this Act for the assessment year for which such income is assessable. But in the amended provisions the words for the assessment year for which such income is assessable has been omitted. Meaning thereby, that the legislature was quite conscious about the facts and hardships faced by some assessees, while making the amendments in section 199 and in amended provisions nothing has been stated about the year in which the credit of TDS is to be claimed. As per amended provisions of section 199, in sub-section 1, it has been stated that any deductions made in accordance with the foregoing provisions of this chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he lower authorities and direct the AO to allow credit for the TDS to the assessee. Thus, the ground of appeal of the assessee is allowed. 12. For the reasons stated above, the claim of the assessee is allowed in as much as it is held that the assessee would be entitled to credit of the entire TDS offered as income by the assessee in his return of income. The grounds raised are therefore, allowed. 13. Ground Nos.2, 3 and 5 of the Grounds of Appeal essentially are regarding restriction of credit of TDS. The learned counsel for the assessee submitted that the authorities below has restricted credit of TDS despite the ITA No.6185/Del./2013 fact that TDS certificates were furnished by the assessee and such credit was also reflected in 26AS statement prepared by the revenue except to the sum of ₹ 4,10,870/- for which, confirmations have been furnished by the assessee. Having regard to the above submission, we feel it appropriate that the issue be restored to the file of the Assessing Officer with a direction that the credit be allowed to the assessee of the entire TDS in respect of which, TDS certificate has been furnished by the assessee in accordance with section 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
