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TMI Blog2024 (11) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee are as under: Ground No. 1 : Grant of short credit of TDS to the extent of Rs. 22,63,023/- "On the facts and circumstances of the case and in law, the ld. CIT (A) has erred in confirming the action of the Ld. AO in granting short credit of Tax Deducted at Source ("TDS") to the Appellant i.e., TDS claimed in return of income (ITR) at Rs. 29,98,646/- whereas the credit of TDS granted in the order of the Ld. CIT (A) is Rs. 7,35,623/- resulting in short grant of TDS to the extent of Rs. 22,63,023. The Appellant prays that the Ld. AO to be directed to grant full credit of TDS as claimed by the Appellant in its ITR and as also reflected in the Form 26 AS." 3. Brief facts of the case are that the assessee is a joint venture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounting to Rs. 79,75,240/- and the balance of Rs. 17,50,660/- (97,25,900-79,75,240) was carried forward to be claimed in the subsequent assessment year i.e. AY 2021-22. Subsequently, due to technical issues, HPCL decided not to pursue the project and therefore, the same was cancelled as per mutual decision between the assessee and the HPCL. However, the HPCL agreed to pay the assessee for the work already undertaken. It was mutually discussed and decided that the assessee would be paid for the work amounting to Rs. 8,31,99,040/- on which TDS was also deducted. Since, the assessee had already offered income to the extent of Rs. 3,41,57,493/- in AY 2020-21, only balance amount of Rs. 4,90,42,547/- was offered in AY 2021-22. However, the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved with the order of the Ld. CIT(A), the assessee is in appeal before us. We have heard the rival submissions and perused the material before us. Admittedly, TDS of Rs. 97,25,900/-was deducted from the advance given to the assessee by HPCL in the earlier AY. Out of this amount, credit of Rs. 79,75,240/- has already been claimed during AY 2020-21. As the contract stands terminated and the money has been refunded back, the assessee has no other option but to claim the balance TDS of Rs. 17,50,660/- during the year under consideration. The Ld. AR has vehemently argued that HPCL has duly deducted and deposited the tax in the Government's account. Since, HPCL was not ready to revise its TDS return, they advised the assessee to claim the refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 59,12,958/- was deducted and credited to the account of the assessee in part. For the assessment year 2002-2003, the assessee has suffered loss. Consequently, there was no income. In the returns filed, the assessee sought for refund of the entire amount. The Assessing Authority treated the receipt of Rs. 7,32,14,128/- as income and granted a refund of Rs. 14,93,568/- out of the TDS amount. He declined to pay the balance amount on the ground that it is adjustable in the future years as and when the assessee offers to tax. If the amount of Rs. 29,98,50,937/- is a mobilisation advance and not an income at all, the question of paying income tax would not arise. When the gross receipts of Rs. 7,32,14,128/- is offered and in that assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usly and pragmatically read as providing for allowing credit for the tax deducted at source in the year of the receipt of the amount, on which tax was deducted at source. If the view point canvassed by the Revenue is accepted and the assessee is not allowed credit for the tax deducted at source will remain in limbo. The Revenue will never be in position to allow credit for such tax because the amount is not chargeable to tax in the hands of the assessee and it cannot retain such amount with it in contravention of Article 265 of the Constitution of India. To circumvent such a situation, the only possible solution is to allow credit for the tax deducted at source to the payee of the amount in the year for which such tax was deducted and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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