2012 (12) TMI 1065 - AT - Income Tax

Summary

Issues involved: Appeal against rejection of TDS claim of Rs. 35,87,265 u/s. 154 for A.Y. 2007-08.

Summary:
The appeal was filed by the assessee against the CIT(A)'s order rejecting the TDS claim of Rs. 35,87,265 without considering the explanation provided. The Assessing Officer observed that the TDS was deducted under a different name, leading to the rejection of the claim. The assessee contended that the entire transaction was reflected in their accounts for the relevant year. The CIT(A) dismissed the claim stating that the TDS certificate was not in the name of the assessee. The assessee also challenged the order u/s. 154 as debatable. The AR argued for the credit of TDS based on the joint venture agreement and submitted an affidavit supporting their claim. The AR relied on a Tribunal order in a similar case favoring the assessee.

The DR argued that the JV is a separate entity and TDS should not be credited to the constituents. The Tribunal noted previous decisions on similar issues and emphasized the need for the assessee to offer income for taxation to claim TDS credit. Referring to the Tribunal's decision in another case, the issue was deemed debatable, and the Assessing Officer was directed to verify if income was offered for taxation before granting TDS credit. The Tribunal annulled the Assessing Officer's order, allowing the assessee's appeal.

In conclusion, the Tribunal found the issue debatable and directed the Assessing Officer to verify if income was offered for taxation before granting TDS credit, ultimately allowing the assessee's appeal against the rejection of the TDS claim.