9911796707
TMI Blog2022 (1) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... S) amounting to Rs. 13,37,98,519/-. According to the assessee, it was allowed short credit of TDS. On further appeal, the Ld. First Appellate Authority i.e. Ld. CIT(A) directed the Assessing Officer to verify and allow the credit of TDS as per provisions of law. (ii) The Ld. Assessing Officer in order dated 07/08/2018, while giving effect to the order of the Ld. First Appellate Authority i.e. Ld. CIT(A) , restricted the credit of TDS to Rs. 15, 20, 64, 111/-, which was appearing in form No. 26AS for AY 2011-12 ( i.e. the form prescribed for providing statement of TDS to the assessee for the year under consideration as per section 203AA of the Act ) as against TDS credit of Rs. 17, 39, 68, 882/- claimed by the assessee. The assessee filed copy of TDS certificates amounting to Rs. 2, 64, 87, 104/- for claiming credit of remaining TDS. (iii) Aggrieved with the order of the Assessing Officer (giving effect to the order of the Ld. First Appellate Authority), the assessee filed appeal before the Ld. CIT(A). 3. Before the Ld. CIT(A), the assessee claimed that as per Annual Tax Statement in form No. 26AS credit of Rs. 15,26,67,613/- is available and out of which amount of Rs. 52,48,26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) is reproduced as under: "I have considered the submission made by the appellant. The appellant has claimed credit for TDS amounting to Rs. 17,39,68,882/in the return of income. Total amount of TDS reflecting in form 26AS for the relevant assessment year is Rs. 15,26,67,613/out of which amount of Rs. 52,48,263/= has already been claimed by the appellant in the preceding assessment years. Thus, as against claim of credit for amount of Rs. 17,39,68,882/amount reflecting in form 26AS of the assessment year under consideration is Rs. 14,74,19,350/only and balance amount of Rs. 2,65,49,532/-is not appearing in form 26 AS of the assessment year under consideration. The appellant has divided credit for this amount in various sub categories and allowability of the claim of the appellant is discussed as under: 1. It is seen from the submission of the appellant that the appellant is seeking credit for TDS amounting to Rs. 2,55,60,477/which has been deducted by the deductees in the previous year relevant to A.Y. 2012 ~ 13 on the ground that corresponding income has been offered during the previous year under consideration by the appellant. I'm of the opinion that the plea of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the appeal, is of the assessment year in which credit of tax deducted at source has to be given. In the case, before us the assessee has submitted a list of TDS certificates amounting to Rs. 2,64,87,104/- which is available on page 18 of the paperbook . The assessee has also enclosed a copy of all the TDS certificates amounting to Rs. 2,64,87,104/-, which are available from page 19 to 103 of the paperbook. On perusal of the TDS certificates, we find that one TDS certificate relates to either assessment year 2010-11, and the remaining certificates relates to assessment year 2011-12 i.e. the assessment year under consideration or assessment year 2012-13. The TDS certificates filed by the assessee had been issued mainly by the Government Organisation, Semi-government organization or Public Sector Undertakings and similar institutions . The assessee is seeking credit of TDS on the basis of these TDS certificates, whereas the Assessing Officer has allowed the credit on the basis of Form No. 26AS, which is a statement of deduction of tax at source prepared by the Income-tax Department in terms of section 203AA of the Act in respect of the tax deducted in the case of the assessee releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and sub-section (2) and also the assessment year for which such credit may be given." 8. The relevant rule i.e. Rule 37BA in this respect is also reproduced for ready reference: "Credit for tax deducted at source for the purposes of section 199. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority. (2) (i) where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee: Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to TDS furnished by the deductor. What is material for sub-rule (1) is the beneficiary of credit for the TDS, being the person to whom payment has been made, which in the instant case is the assessee. The ld. CIT(A) has, in addition, relied on sub-rule (4) of Rule 37BA, which again provides that the credit for TDS shall be granted on the basis of information relating to deduction of tax at source furnished by the deductor. How, this rule prejudices the claim of the assessee is anybody's guess. Obviously, the information about the TDS by Ashok Leyland is not denied. Both the sub-rules simply provide for granting of the benefit of TDS. The point of time at which the benefit of TDS is to be given, is governed by sub-rule (3) of Rule 37BA, which unequivocally provides through clause (i) that the ‗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'. It is, ergo, abundantly clear from the mandate of Rule 37BA(3)(i) that the benefit of TDS is to be given for the assessment year for which the corresponding income is assessable. Since the income of Rs. 84.10 lakh, on which tax of Rs. 8,41,05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account or in which year TDS certificate has been issued. The relevant thing which has to be verified is for which year the deductor has credited the income to the assessee in the TDS certificate issued and if the income is credited for relevant assessment year then TDS credit has to be allowed even if said TDS credit is appearing in Form No. 26AS in next assessment year. 13. When we analyze the facts of the instant case in above legal background, we find that the TDS certificates under reference filed by the assessee before the Ld. Assessing Officer can be divided in three categories. First category, where the TDS has been deducted by the deductor for assessment year 2010- 11. One TDS certificate, available on page 30-31 of the paperbook , falls in this category. In this TDS certificate, date of credit or payment is not mentioned and only date of deposit of TDS of Rs. 26,956 and Rs. 34,072 in Government Account is mentioned as on 05/03/2010 and 05/04/2010 respectively. In the circumstances, it needs verification as to in which year the corresponding income was assessable in the hands of the assessee. 14. As far as second category of TDS certificates are concerned, we find that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corresponding to those TDS certificate was assessable in the year under consideration. 16. In view of our finding above, we set aside the finding of the Ld. CIT(A) on the issue in dispute and restore the issue of verification of TDS certificates amounting to Rs. 2,64,87,104 as to in which assessment year income corresponding to the TDS is assessable and allow credit accordingly. For verification of the assessment year in which income is "assessable‟, the Assessing Officer may carry out the inquiries which he deems fit in the circumstances including verifying the previous year relevant to the assessment year in which corresponding bills/invoices are issued by the assessee, the previous year in which services corresponding to bills issued were rendered, when the entries of such bills / invoices were made in the books of accounts of the assessee , the previous year in which such bills/invoices were sent to the TDS deductor etc. We have also noticed difference in amount of TDS credit denied by the Ld. AO and amount challenged in Ground No. 2 of the appeal. The Assessing Officer shall reconcile those amounts and ensure that if credit of particular TDS amount is allowed in the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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