TMI Blog2023 (3) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificate issued by the deductor and the Ld. Assessing Officer is directed to allow the credit of the said TDS after due verification. The Assessing Officer cannot simply decline the credit of TDS and he is bound to verify TDS certificate issue in accordance with provisions of law. Further, the Assessing Officer is also directed to verify if any relief has already been granted in the rectification application filed by the assessee. If so then further benefit of TDS credit may not be allowed. In view of the our direction above, the grounds of appeal of the assessee are accordingly allowed for statistical purposes. - ITA No. 3004/MUM/2022 And ITA No. 3005/MUM/2022 - - - Dated:- 24-1-2023 - Shri Aby T Varkey (Judicial Member) And Shri Om Prakash Kant (Accountant Member) For the Assessee : Mr. Milin Dattani, AR For the Revenue : Mr. Aditya M. Rai, DR ORDER PER OM PRAKASH KANT, AM Bothe these appeals by the assessee are directed against two separate orders, both dated 29.09.2022, passed by the Ld. Commissioner of Income-tax (Appeals)-National Faceless Appeal Centre, Delhi [in short the Ld. CIT(A) ]. Being common ground of TDS credits involved in both thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from property at Navbharat Chambers as against credit of ₹1,78,032/- claimed in the return of income. The Ld. Assessing Officer also did not allow credit of the TDS of ₹64,458/- in respect of dividend income offered to tax under the head income from other sources. 3.1 Aggrieved with the denial of credit of TDS of ₹92,792/-, the assessee filed appeal before the Ld. CIT(A), however, could not succeed. 4. Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal by way of raising grounds as reproduced above. 5. Before us, the assessee has filed intimation for payment of dividend issued by Tata Steel Ltd along with case laws relied upon by the assessee. 6. We have heard rival submission of the parties on the issue-indispute and perused the relevant material on record. In the grounds raised, the assessee is aggrieved with restricting of the TDS credit by the Assessing Officer/Ld. CIT(A) in respect of the income form house property and income from dividend. In respect of income from house property, the assessee has provided breakup of receipt of rental income from Navbharat Property as under: Month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. 6.4 We find that the Ld. CIT(A) has, on both the issues reproduced the facts of the case of the assessee as well as the relevant provisions of the Act and Income-tax Rules, 1962 (in short the Rules ). The relevant part of the same is reproduced as under: 5.5 Section 199 of the Income Tax Act, 1961 deals with the credit of tax deducted. As per sub section (1), if any deduction is made as per the chapter XVII and paid to the Central Government, same shall be considered as payment of tax on behalf of the person from whose income the deduction was made. Sub section (3) further explains that CBDT may frame Rules in facilitating credit to be given in respect of Tax deducted. CBDT has framed Rule 37BA u/s 199(3). As per clause (4) of Rule 37BA, the credit of tax deducted and paid to the Central Government shall be allowed on the basis of the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority and the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from time to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith requisite details and particulars in the form of TDS certificate as an evidence against any mismatched amount, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS in the Government Account and if the payment has been made, credit of the same should be given to the assessee. However, the Assessing Officer is at liberty to ascertain and verify the true and correct position about the TDS with the relevant AO (TDS). The AO may also, if deemed necessary, issue a notice to the deductor to compel him to file correction statement as per the procedure laid down. The appellant's case in present appeal qua rental payment is not concerned with the subject matter of the circular as the former is about seeking credit where tax was to be deducted subsequently. As far as TDS on dividend already deducted but not finding mention in 26AS due to lack of PAN data, the appellant has all the liberty to make good use of the circular by providing requisite details of TDS certificate in form 16A before the AO to claim credit of the correct amount of TDS. 6.6 After referring the provisions of the law as well as judicial precedent on the issue, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessable in future, then the credit for the balance TDS can be allowed only in future when income is assessable. Credit allowed on pro rata basis in the year in which the certificate is issued and also in future where balance or such income is found to be assessable is as per the mandate of provision of section 199 of the Act. Any amount which has not been assessed in any year but referred in the TDS certificate, cannot be claimed under section 199 of the Act. 5.8 Section 199 of the Act has two objectives - one to declare the TDS as payment of tax on behalf of the person on whose behalf the deduction was made and to give credit for the amount so deducted on the production of the certificate in the assessment made for the assessment year for which such income is assessable. The second objective mentioned in section 199 is only to answer the question as to the year in which the credit for TDS shall be given. It links up the credit with assessment year in which such income is assessable. In other words, the Assessing Officer is bound to give credit in the year in which the income is offered to tax. This section 199 does not empower the Assessing Officer to determine the year o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee in the year under consideration and allow the credit as directed above. As far as TDS credit in respect of divided income is concerned the assessee is directed to furnish TDS certificate issued by the deductor and the Ld. Assessing Officer is directed to allow the credit of the said TDS after due verification. The Assessing Officer cannot simply decline the credit of TDS and he is bound to verify TDS certificate issue in accordance with provisions of law. Further, the Assessing Officer is also directed to verify if any relief has already been granted in the rectification application filed by the assessee. If so then further benefit of TDS credit may not be allowed. In view of the our direction above, the grounds of appeal of the assessee are accordingly allowed for statistical purposes. 7. The grounds raised by the assessee in assessment year 202021 in ITA No. 3004 is reproduced as under: On the facts and circumstances of the case : 1. The learned CIT(A) erred in confirming the action of the Assessing officer (CPC) restricting credit for the TDS to Rs. 2,83,928 as against credit of Rs. 3,13,600 claimed in the return of income in respect to rent income from proper ..... X X X X Extracts X X X X X X X X Extracts X X X X
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