9911796707
TMI Blog2025 (5) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has raised the following grounds of appeal: AY 2021-22 "1. The Appellant objects to the demand determined of Rs. 1,21,050/-. 2. The Commissioner of Income Tax (Appeals) erred in upholding that the Centralized Processing Centre (CPC) has rightly not granted TDS credit to the extent of Rs. 97,201/- claimed in the return of income only on the basis that the same did not appear in the 26AS of the Appellant. 3. Both the learned Commissioner of Income Tax (Appeals) and CPC erred in not considering the fact that the income from the assets held in the Trust created for the Appellant's sole benefit, is required to be taxed u/s 161(1) of the Act in the Appellant's own hands. 4. The learned Commissioner of Income Tax (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant's sole benefit, is required to be taxed u/s 161(1) of the Act in the Appellant's own hands. 4. The learned Commissioner of Income Tax (Appeals) and CPC erred in upholding that CPC has rightly not granted TDS credit of Rs. 5,57,324/-, inspite of assessing income of Rs. 57,08,706/- from the trust in which the Appellant is the sole beneficiary, ignoring the provisions of section 199 of the Act read with rule 37BA. 5. The learned Commissioner of Income tax (Appeals) erred in upholding that CPC has rightly not granted TDS credit of Rs. 5,57,324/- despite acknowledging the fact that the income and TDS pertaining to the trust as appearing in 26AS of the trust, has been offered to tax in the hands of the Appellant and that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee and offered for tax, corresponding TDS benefit should have been allowed to the assessee. However, after considering the provision of relevant sections and rules, Ld. CIT(A) decided the appeal with the following observations: "In the present appeal under consideration, it is observed that income and TDS is related with the Trust and ITR has also filed by the Trust showing Nill income and no TDS was claimed by the Trust in the ITR filed for the Asstt. Year 2021-22. The Appellant in the capacity of Individual filed ITR for the Asstt. Year 2021-22 showing income related to Trust and claimed TDS, which was also shown in the Form 26AS of the Trust. In view of the above discussion, the restriction of TDS by the CPC Bengaluru is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to claim credit for the TDS deducted on this income. In this year, the return of trust could not be filed due to technical difficulties as the pop-up on the screen advised the trust as under: "Under this scenario, filing of ITR 5 is not required. The share of income should be reflected in the personal return of income." Print out of relevant screenshot showing the above message from the department has also been filed by the assessee. Under these circumstances, there is no reason why the assessee should not be given credit for the TDS relevant to the income of the trust, which has been clubbed in the hands of the assessee. We, therefore, direct the jurisdictional AO to allow the credit to the assessee in respect of TDS of Rs. 97,201/- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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