TMI Blog2020 (10) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... of the AO for fresh verification - Decided in favour of assessee for statistical purposes - ITA No.373/CTK/2019 - - - Dated:- 8-10-2020 - Shri Chandra Mohan Garg, Judicial Member For the Assessee : Shri B.K. Mohapatra, AR For the Revenue : Shri Subhendu Dutta, DR ORDER This is an appeal filed by the assessee against the order of the CIT(A),2, Bhubaneswar dated 12.6.2019 for the assessment year 2014-15. 2. Grounds of appeal raised by the assessee read as under: 1. That the order of the ld CIT(A) dated 12.6.2019 in dismissing the appeal, is against the principles of natural justice, contrary to facts, arbitrary, excessive, erroneous and bad both the eye of law and on facts. 2. Non Credit of TDS of ₹ 12,88,214/- a. That on the facts and in the circumstances of the case, the learned CIT(Appeals) upholding the order of the Assessing Officer in giving credit for TDS of only ₹ 4,04,840/- as against TDS of ₹ 16,93,054 - as per return and also duly reflected in Form 26AS of the assessee, thereby the denial of tax credit for TDS of ₹ 12,88,214/-i.e( ₹ 16,93,054 - ₹ 4,04,840). is against the principles of natural just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y pointed out that the denial of tax credit for TDS of ₹ 12,88,214/. is against the principles of natural justice, contrary to facts, unjustified, arbitrary, erroneous and bad, both in the eye of law and on facts and legally unsustainable. Ld A.R. submitted that the authorities below have misconstrued and mis-appreciated the facts and law and denial of tax credit for TDS of ₹ 12,88,214/- under Rule 37BA of the Income tax Rules, 1962 is contrary to the facts and thus not tenable. Ld A.R. submitted that without prejudice to above submission, ld CIT(A) has mis-appreciated and mis-interpreted the provisions of Rule 37BA of the Rules 1962 and not following the ITAT order is unjustified, arbitrary and erroneous. Ld A.R. lastly contended that if the authorities below have some doubts in their minds as to whether the assessee is claiming double TDS, then the issue may be restored to the file of the AO for limited purposes to examine and verify as to whether respective recipients have claimed TDS in their returns or not and if answer is not, then the assessee is entitled for claiming TDS as per Form No.26AS pertaining to him. 6. Replying to above, ld Sr DR submitted that duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deducted, invoking section 199 of the Act. Therefore, we feel it necessary to look into Section 199 of the IT Act, which reads as under :- Credit for tax deducted. 199. (1) 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 property or of the unit-holder, or of the shareholder, as the case maybe. (2) Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made. (3) The Board may, for the purposes of giving credit in respect of tax deducted or tax paid in terms of the provisions of this Chapter, make such rules53 as may be necessary, including the rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and subsection (2) and also the assessment year for which such credit may be given.] 9. Further, in terms of the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of - (i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority; and (ii) the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from time to time. 10. On plain reading of section 138 of the Act and rules made thereunder, it is apparent that sub section 2 and 3 of the section are not applicable to the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of law, that the tax deducted at source is treated as a payment of tax on behalf of the person from whose income the deduction was made and consequently credit shall be given to him for the amount so deducted. So the role of section 199 is confined to allowing the credit for the tax deducted at source to the payee of the amount and none else. 11. Further in the case of Escorts Ltd. vs. DCIT (Supra) the Tribunal has held as under :- 'As per our considered view, credit for TDS must in every case be given to the assessee from whose income tax was deducted at source and paid to the credit of the Central Government. If the recipient of the income considers that he is not liable to tax in respect of the income, wholly or partly, therefore, does not disclose the amount of such income in his return, the Income-tax Department cannot refuse to give credit merely by contending that the income had not been disclosed in the return filed by the assessee for the assessment year. 12. Further, the decisions of the Tribunal in cases of renovation technologies (Supra) and Supreme Renewable Energy Ltd. (Supra) also support the stand of the assessee. Further, the fact that the ..... 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