2022 (9) TMI 1370

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..... the appellant in its return of income. 2. The learned C.I.T. (Appeals) while not granting the full credit of TDS as claimed by the appellant in its return of income has overlooked the fact that the appellant follows "Cash Method" of accounting as per statutorily permitted in terms of the provisions of Section 145 of the Income-tax Act, 1961 regularly and has claimed credit of TDS made by the deductor against Professional receipts offered to tax during the previous year irrespective of the financial year in which such TDS was made by the deducotr, in compliance with the provisions of Section 199 read with Rule 37BA of the Income-tax Rules, 1962 2. The assessee, in the present case, is a partnership firm which filed its return of income f .....

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..... n over the case. It is also noted that there is very limited sphere of power with the department u/s, 143(1) to undertake adjustments in the returned income as per provisions of IT Act, 1961 and entries in Form 26AS are important guiding light for any such action. This is a reality which must be accepted by the appellant. Therefore, I decide to direct the AO to grant credit of any TDS deducted in A.Y.2016-17 provided the commensurate receipt is also brought to tax in A.Y. 2016-17. Similarly, the credit for TDS deducted in A.Y. 2017-18 should be granted in A.Y. 2017-18 without leaving out any commensurate income for assessment in A.Y. 2017-18. The Form No.26AS would not be causing any problem to either party provided the deductor has uploa .....

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..... Officer and while disposing of the same vide an order dated 28.06.2019 passed under Section 154, the Assessing Officer allowed full credit of TDS of Rs.32,28,248/- as claimed by the assessee in the return of income. He has submitted that the appeal filed by the assessee before the learned CIT(A) and the impugned order passed by the learned CIT(A) disposing of the said appeal has become infructuous and urged that the same may be cancelled. After having perused the copy of the order dated 28.06.2019 passed by the Assessing Officer under Section 154 of the Act - copy of which is placed on record before us, we are inclined to accept the contention of the learned Counsel for the assessee. Even the learned Departmental Representative has not rai .....

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