TMI Blog2022 (11) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... at neither the assessee has claimed TDS credit for the amount in dispute in assessment year 2017-18 nor AO has granted any such credit. On a perusal of Rule 37BA, it is observed that TDS credit has to be granted in the year in which the corresponding income is taxable. As per the accounting principle followed by the assessee, the income relating to the TDS is taxable in assessment year 2016-17. In fact, the assessee has offered the amount to tax in assessment year 2016-17. That being the factual position emerging on record, the assessee must get credit for the TDS in the impugned assessment year. More so, when the assessee has claimed that the TDS credit for the amount in dispute has not been granted in assessment year 2017-18. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel appearing for the assessee submitted, the assessee follows accounting system of recognizing revenue on accrual basis. He submitted, on 31.03.2016 the assessee raised an invoice on Reliance Industries for an amount of US dollar 309870. However, though, the amount was accounted for in the books of account of the assessee as income in financial year 2015-16 corresponding to assessment year 2016-17, however, payment was actually released by Reliance Industries in the subsequent assessment year after deduction of tax at source. He submitted, since, the assessee recognizes revenue on accrual basis, it accounted for the income in assessment year 2016-17 and also claimed credit for the TDS. Drawing our attention to Rule 37BA, learned counsel s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he TDS amount was reflected in Form 26AS for assessment year 2017-18. In fact, the TDS certificate issued by Reliance Industries Ltd., the TDS amount was shown for assessment year 2017-18. To a specific query raised by us, learned counsel appearing for the assessee made a statement at the Bar that neither the assessee has claimed TDS credit for the amount in dispute in assessment year 2017-18 nor Assessing Officer has granted any such credit. On a perusal of Rule 37BA, it is observed that TDS credit has to be granted in the year in which the corresponding income is taxable. As per the accounting principle followed by the assessee, the income relating to the TDS is taxable in assessment year 2016-17. In fact, the assessee has offered the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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