TMI Blog2012 (2) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... e for seeking credit of the TDS amount. Hence, set aside the orders of the authorities below and decide the issue in favour of the assessee. - ITA No. 1252/Del/2012 - - - Dated:- 27-2-2012 - Shri Shamim Yahya, J. Assessee by : Sh. K. Sampath, Adv. Department by : Dr. B.R.R. Kumar, Sr. D.R. ORDER This appeal by the Assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-XXVIII, New Delhi dated 13.1.2012 pertaining to assessment year 2008-09. 2. The ground raised in the appeal is that Ld. Commissioner of Income Tax (A) erred in confirming the disallowance of the claim for credit of TDS u/s. 199 of the I.T. Act, 1961. The action being arbitrary, fallacious and illegal must be quashed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w mercantile system of accounting used to make provision for audit fee payable and deduct tax on it, but is actually paid only after 31.3.2008. Assessing Officer further observed that it was for the assessee to established as to whether the assessee has actually offered the said fees as receipt/income for the relevant assessment year in which credit for TDS was claimed. Assessing Officer noted that since the assessee has not substantiated its claim for TDS is in the accordance with the provisions of section 199 of I.T. Act the credit for TDS amounting to ₹ 1,10,961/- claimed was assessee was not allowed. However, credit for proportionate TDS @ 10.3% on the amount of TDS amounting to ₹ 1,10,961/- was allowed since the TDS amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the amount equivalent to the tax deducted at source had already been included in the gross receipts by the assessee firm. 4.1 Considering the submissions, Ld. Commissioner of Income Tax (A) noted that the assessee has failed to furnish the evidence regarding receipt of fees during the assessment year under consideration in cases where TDS amounting to ₹ 1,10,961/- was deducted. Ld. Commissioner of Income Tax (A) further noted that it has not substantiated its claim for TDS in accordance with the provisions of Section 199 of the I.T. Act, 1961. Therefore, he confirmed the Assessing Officer s action of allowing credit for proportionate TDS amounting to ₹ 11,429/- and balance amount of TDS of ₹ 99,532/- was withdrawn. Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 199(1) as under:- Any deduction 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, or of the owner of the security, or of the depositor or of the owner of the property or of the unit-holder, or of the shareholder, as the case may be. 6.2 A reading of the above make it clear that any deduction made and paid to the Central Government shall be treated as payment of tax on behalf of the assessee from whose income the deduction was made. 6.3 In this case as the fee of ₹ 1017843/- was not received in the period under appeal, Hence the assessee did not account for the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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