TMI Blog2021 (6) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... for entire amount or for the amount of ₹ 48,06,843/- only. Without examining that issue, he is not justified in holding the advance amount as taxable receipt of the year. In the case of Varsha G. Salunke [ 2005 (9) TMI 226 - ITAT BOMBAY-F] also the payment was received in one year, however, bills for part of payment received in subsequent years. The Tribunal directed to give credit of the TDS the year in which income was offered for taxation. We feel it appropriate to restore the issue in dispute to the file of the Assessing Officer, with the direction to the assessee to demonstrate taxability/non-taxability of amount in the year under consideration with the help of documentary evidences including, bills/invoice, proof of work performed etc. Then, the Assessing Officer shall decide the issue in accordance with law. Ground No. 1 of the appeal is accordingly allowed for statistical purposes. - ITA No.6984/Del./2017 - - - Dated:- 31-5-2021 - Shri O.P. Kant, Accountant Member And Shri K.N.Chary, Judcial Member For the Appellant : Sh. Vinod Kumar, CA For the Respondent : Sh. Mahesh Thakur, Sr. DR ORDER PER O.P. KANT, AM: This appeal by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee filed a paper book containing pages 1 to 145 and submitted that assessee has already offered the advance amount of ₹ 60,16,218/- in subsequent years and, therefore, corresponding credit of the TDS might be drawn from the year under consideration and same might be allowed in subsequent year(s), corresponding to the income offered. In Support of his contention, he relied on the decision of Tribunal, Mumbai Bench the case of Varsha G Salunke Vs DCIT, reported in 98 ITD 147. 4. The Learned DR, on the other hand, relied on the order of the lower authorities and submitted that Learned CIT(A) has correctly upheld the addition. 5. We have heard rival submission of the parties on the issue in dispute. The parties who have made payment to the assessee has deducted TDS at the rate of 2 percentile on entire payment of ₹ 1,08,23,026/-. The assessee claimed entire tax which was deducted by those parties (i.e deductor) but income of ₹ 46,06,843/- has only been offered for tax by the assessee and balance amount of ₹ 60,16,218/- has been claimed as advance against work. The Assessing Officer has treated this advance as income of the assessee in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes the year in which the credit is to be given on the basis of the certificate furnished. In other words, when the assessee produces the certificates of TDS, the assessing officer is required to verify whether the assessee has offered the income pertained to the certificate before giving credit. If he finds that the income of the certificate is not shown, the assessing officer has only not to give the credit for TDS in that assessment year and has to defer the credit being given to the year in which the income is to be assessee. At the cost of repetition, it may be mentioned that sections 198 and 199 do not in any way change the year of assessability of income, which depends upon the method of accounting regularly employed by the assessee. They only deal with the year in which the credit has to be given by the assessing officer. It cannot be disputed that according to the method of accounting employed by the assessee the income in respect of the three TDS Certificates, which are mentioned in paragraph 3 above, does not pertain to the assessment year in question, but it pertains to the next assessment year and, in fact, in that year the assessee has offered the same to tax. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year in question. Only the matching receipts have not accrued to the assessee in the accounting year in question due to the method of accounting employed by her. But over the years, the effect on the profit loss account gets neutralized. Sections 198 and 199, it may again be stressed, do not in any way determine the year of assessability of profits and gains of business. They only deal with the year in which the TDS Certificates have to be given credit to. In my humble opinion, the decision of the Hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals Fertilizers Ltd. (supra) relied upon by the learned Judicial Member, does not in any way alter the year of assessability of income, which is governed under sections 28, 29 and 145 as has been interpreted by the Apex Court and as discussed by me above. 8. Before parting with the matter, I think it is necessary for me to deal with certain observations regarding the claiming of the expenditure as discussed by the learned Judicial Member. The claim of deduction for an expenditure depends upon again the method of accounting regularly employed by the assessee. There is no dispute that the assessee has incurred these e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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