TMI Blog2018 (1) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Shri B.R Ramesh, CIT ORDER PER SHRI JASON P BOAZ, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of the Commissioner of Income-tax (Appeals) 7, Bangalore dated 30/8/2016 for asst. year 2012-13. 2. Briefly stated, the facts of the case are as under:- 2.1 The assessee, Prop. K.K Corporation, engaged in business as selling agents for M/s Raymonal Ltd., products for the states of Karnataka Goa, filed his return for asst. year 2012-13 on 30/9/2012 declaring income of ₹ 3,92,56,910/-. The case was taken up for scrutiny and the assessment was completed u/s 143(3) of the Incometax Act, 1961 (in short the Act ), wherein the assessee s income was determined at ₹ 3,97,60,968/- in view of an addition of ₹ 5,04,063/-u/s 198 of the Act on account of TDS credited upto 31/3/2012. On appeal, the ld CIT(A) dismissed the assessee s appeal vide order dated 30/8/2016. 3.1 Aggrieved by the order of the ld CIT(A)-7, Bangalore dated 30/8/2016 for asst. year 2012-13, the assessee has filed this appeal before the Tribunal, wherein the following grounds are raised:- 1. The Order of the Learned Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be considered. In the present case your appellant has shown the income at gross including the TDS. The amount of income recognised on Gross Basis has never been a matter of dispute by the Assessing Officer. The Learned Assessing Officer has added the TDS as undisclosed TDS amounting to ₹ 5,04,063/- instead of it being carry forward to the year in which income is received. The fact is that there is no undisclosed TDS, since the assessee has disclosed the income on receipt basis has claimed TDS only to the extent of the income received during the year. The balance of TDS cannot be treated as undisclosed TDS. 7. While filing the return of income the appellant has shown the details of income offered and taxes applicable claiming the tax deducted at source proportionately to the income received and the balance of tax deducted at source (TDS) relating to the income not received is carried forward for subsequent years for tax credit as provided under section 199 of the Income Tax Act, 1961. The details of claim of TDS are as below: Total TDS brought forward from previous years Total TDS as per 26 AS for FY 2011-12 To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 54,79,160/-. As per the provisions of Section 198, the amount of TDS is deemed income of the deductee and in the instant case the TDS amount which is not disclosed is accordingly, has to be added as income of the appellant. The appellant has total pre-paid tax credit of ₹ 1,20,29,159/- which includes ₹ 65,50,000/- as advance tax and ₹ 54,79,160/- of TDS. The A.O has allowed the credit of prepaid taxes of ₹ 1,20,79,565/- including proportionate TDS on the amount of undisclosed TDS which is treated as income of the instant year. The proportionate credit of TDS at 10% has been allowed by the A.O out of the undisclosed TDS of ₹ 5,04,063/-. The amount of this undisclosed TDS has never been a point of dispute. But the only contention regarding the amount is regarding the addition to the total income. Section 199 reads as follows: ( 1) Any deduction made in accordance with the foregoing pro-visions 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 was made, or of the owner of the security, or of the depositor or of the owner of property or : e unit-holder, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxed in the same year. In view of the above submissions, we pray that the additions made be deleted. 3.4 Per contra, the ld DR relied on and supported the orders of the authorities below. 3.5.1 We have heard the rival contentions and perused and carefully considered the material on record. As can be seen from the order of assessment (page1/column 8) and the assessee s submissions, admittedly, the assessee is following the cash systems of accounting and professional receipts are declared on receipt basis. From a perusal of the reconciliation statement of professional receipts and TDS furnished, the AO was of the view that the assessee has neither declared the income of the corresponding amount nor claimed TDS of ₹ 5,04,063/- pertaining to it and proceeded to make an addition thereof as income of the assessee as per the provisions of sec. 198 of the Act. On appeal, we find that the ld CIT(A) upheld the AO s order, brushing aside the assessee s contentions that his case clearly falls under the provisions of sec. 199(3) of the Act (credit for tax deducted) r.w Rule 37BA(3)(ii) of the IT Rules, 1962 (Credit for tax deducted at source for the purposes of sec. 199) an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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