TMI Blog2023 (1) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration of the asset, which was owned by partnership firm - there is no dispute that the assessee is partner in the said firm and signed the sale deed on behalf of partner in fiduciary relationship. It is also admitted fact that the TDS was credited in the account of (PAN) of assessee. From the fact of the present case, it is not clear that any tax liability was created against the firm on transfer of such asset, which was owned by firm. Thus, we deem it appropriate to restore the case to the file of assessing officer, with the direction to adjudicate the issue afresh. The assessee is also directed to move appropriate application under section 199 read with Rule 37BA for claiming the credit of such TDS with required declaration, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al gain on sale of property was offered for taxation in the hands of Partnership form and no revenue loss incurred to the department. 1.2 In law and in facts and circumstances of the case, the learned CIT(A) National Faceless Appeal Centre erred in not allowing TDS credit to the appellant though no income against such TDS credit was earned by the appellant against such TDS credit. 2.Without prejudice to the above, in law and in facts and circumstances of the case, the learned CIT(A) National faceless Appeal Centre erred in not directing the Ld AO to allow the credit to the partnership firm where the income against sale of property has been offered for tax. 3. The appellant craves leave to add, amend and/or withdraw any ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntre, Bengaluru (CPC) vide intimation dated 23.10.2020. The CPC not allowed such credit of TDS of Rs.2,21,000/-. The assessee filed application under section 154 for seeking rectification in the intimation of CPC, vide application dated 08.10.2020. The rectification application was rejected by CPC vide its order dated 23.10.2020. 4. Aggrieved by order of rejection of application under section 154, the assessee filed appeal before Ld. CIT(A). The appeal of assessee was migrated to NFAC, Delhi. Before NFAC/Ld. CIT(A) the assessee stated that during the period under consideration, the assessee was a partner in the firm of M/s Shri Hari Agri. During the financial year, immovable property was sold by said partnership firm (M/s Shri Hari Agri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) after considering the submission of the assessee rejected / dismissed the appeal of assessee by holding that provisions of section 199 and Rule 37BA, the credit can be claimed only in the year in which such income is assessable in the hand of the person other than deductee. It was also held that claim of credit can only be considered in the hand of firm as the income is assessable in the hand of partnership firm. The assessee executed the sale deed on behalf of the firm in the representative capacity as a partner. The assessee ought to have file declaration that as per Rule 37BA the credit be given to the partnership firm. The CPC has done the processing of return on the basis of information available in 26AS in the system, on the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed application for rectification under section 154. In the application under section 154, the assessee claimed such refund on the ground that during the financial year, immovable property was sold by said partnership firm (M/s Shri Hari Agri.) which was acquired by the partnership firm from its own source. The sale deed was executed by the assessee in the capacity of partner. The property was reflected in the balance-sheet of partnership firm. The TDS was made by purchaser and credited to the account of assessee (PAN). As the property was owned by the partnership firm, the capital gain was offered in the return of income of partnership firm, though document was executed by partner in its fiduciary capacity. No sale consideration was sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of (PAN) of assessee. However, from the fact of the present case, it is not clear that any tax liability was created against the firm on transfer of such asset, which was owned by firm. Thus, keeping in view all the facts and circumstances of the case, I deem it appropriate to restore the case to the file of assessing officer, with the direction to adjudicate the issue afresh. The assessee is also directed to move appropriate application under section 199 read with Rule 37BA for claiming the credit of such TDS with required declaration, undertaking of other condition prescribed therein. On filing such application with required declaration, the assessing officer shall decide the same in accordance with law. Needless to direct that before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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