TMI Blog2022 (12) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of mercantile system of accounting. The assessee had also furnished necessary details of TDS brought forward from earlier financial years in Form ITR-5 filed for impugned assessment years. As per the provisions of section 199 200 of the Act, credit for TDS should be allowed when the assessee has offered income relating to said TDS. The assessee claims that income relating to said TDS has been offered to tax for the impugned assessment years. If, the claim of the assessee is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. The fact needs to be verified. Therefore, we set aside the issue to the file of the AO and direct the AO to veri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for TDS to the tune of Rs.78,31,008/-. 2.2. The Commissioner of Income Tax (Appeals), NFAC ought to have allowed TDS as claimed in the return of income since the income was offered for tax in the relevant year. 2.3. The Commissioner of Income Tax (Appeals), NFAC grossly erred in not considering the fact that this arises out of multiple factors like different TAN numbers for same customer based on locations, deductions in bills and consequent reduction in TDS, other clerical issues, customers paying in subsequent year and customers doing TDS after our filing IT returns. 2.4. The Commissioner of Income Tax (Appeals), NFAC ought to have called for reconciliation between TDS as per 26AS and TDS as per Return of Income. 2.5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The Ld. DR on the other hand opposing the condonation petition filed by the assessee submitted that reasons given by the assessee does not come under reasonable cause and thus, delay may not be condoned. 5. We have heard both the parties and considered petition filed by the assessee for condonation of delay of 89 days in filing both the appeals and considering relevant facts, we find that there is sufficient and reasonable cause for not filing appeals in time. Therefore, we condone the delay in filing both appeals and admit appeals filed by the assessee for adjudication. 6. The brief facts of the case are that the assessee is a limited liability partnership firm engaged in the profession of consulting and auditing. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of mercantile system of accounting. He further submitted that the AO has allowed TDS credit as per Form 26AS without appreciating the fact that as per the provisions of section 199 200 of the Act, credit for TDS should be allowed when the income pertains to TDS has been offered to tax. Since, the assessee has offered to tax income relating to TDS credit on the basis of mercantile system of accounting, has rightly claimed credit for TDS and said particulars has been furnished in ITR-5 filed for the relevant AY. The AO without appreciating the fact rejected claim of the assessee. 8. The Ld. DR on the other hand supporting the orders of the ld. CIT(A) submitted that as per the amended Form ITR-5, it is for the assessee to ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS. The assessee claims that income relating to said TDS has been offered to tax for the impugned assessment years. If, the claim of the assessee is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. The fact needs to be verified. Therefore, we set aside the issue to the file of the AO and direct the Assessing Officer to verify the claim of the assessee and in case the AO finds that income relating to said TDS has been offered to tax for the impugned assessment years, then the credit for TDS also needs to be allowed as claimed by the assessee. 10. In the result, the appeals filed by the assessee for assessment years 2018-19 2019-20 are al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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