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TMI Blog2022 (7) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2016-17 in question and inter alia claimed credit for TDS amounting to Rs.5,70,516/- deducted by deductor, namely, KIN Finserv LLP in the preceding Assessment Year 2015-16. The assessee however claimed credit of TDS in Assessment Year 2016-17 on the ground that the bill was raised in Financial Year 2015-16 on 01.08.2015 and thus the income accrued in Assessment Year 2016-17 also included in the return of income in the Assessment Year 2016-17 notwithstanding the deduction of TDS by the payer in Assessment Year 2015-16. The assessee claims to have reported an income of Rs.57,05,156/- based on invoices dated 01.08.2015 in the Assessment Year 201516 and accordingly the assessee is entitled to TDS credit in the year in which the income is rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer had denied the corresponding credit of TDS in the Assessment Year 2016-17. The assessee has also not claimed the credit for TDS in Assessment Year 2015-16 where the deduction was carried out by the payer and reflected in the form 26AS of that Assessment Year. This has resulted in double jeopardy leading to paying the taxes twice. It was contended that with the insertion of Rule 37BA w.e.f. Assessment Year 2009-10, the law is clear without any room for any ambiguity when read in conjunction with Section 199 of the Act. As per the law laid down in Section 199 r.w. Rule 37BA(3), the credit for TDS shall be allowed by the Assessing Officer in the year when the income has been offered by the assessee. In the instant case, the income has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the corresponding income has been referred by the assessee. A reference was made to the decision of the Co-ordinate Bench in the case of Greatship India Ltd. vs. DCIT in ITA No.5562/Mum/2018 order dated 8th June, 2020 to contend that the TDS credit cannot be postponed to a different assessment year on the basis of deduction carried out by the deductor when the accrued income from such transaction has been reported in the earlier assessment year. 6. A combined reading of Section 199(3) r.w. Rule 37BA(3) makes the position of law clear that credit for TDS is available in the year in which the income is reported and as a corollary, should not be deferred to some other assessment year. In the instant case, the Revenue has allowed the credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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