2015 (10) TMI 2797 - AT - Income Tax

Credit for TDS - CIT(A) deleted the disallowance made by the AO u/s.199 in view of 1 st and 2nd proviso - HELD THAT - This issue is squarely covered in favour of the assessee by the decision of the Tribunal in assessee s own case 2015 (11) TMI 9 - ITAT CHENNAI wherein held we are not in a position to express any opinion whether the assessee is having any element of income from subscription charges received from various parties. Therefore, if the entire subscription received by the assessee is transferred to M/s. Sun TV and the assessee is entitled only for commission on subscription income, then the Tribunal s decision relied by the assessee s counsel is applicable. Accordingly, we are remitting the entire issue back to the file of the Assessing Officer to consider the issue afresh in the light of the above observation. Respectfully following the aforesaid decision of the Tribunal, we are remitting the entire issue back to the file of the Assessing Officer for fresh consideration - Appeal of the Revenue is partly allowed for statistical purposes.

Summary

Issues involved:
Disallowance of TDS credit claimed by the assessee under section 199.

Analysis:
The appeal was filed against the order of the Commissioner of Income-tax(Appeals) by the assessee. The Revenue raised grounds challenging the deletion of disallowance made by the Assessing Officer under section 199 amounting to Rs. 2,62,70,314/- for TDS credit claimed by the assessee. The Revenue contended that TDS credit can only be given to the extent of proportionate income offered for assessment. The assessee firm had filed its return of income declaring total income for assessment year 2011-12. The Assessing Officer disallowed the TDS claimed by the assessee relating to subscription charges collected on behalf of another entity and demanded Rs. 1,98,10,730/-. The Commissioner of Income-tax(Appeals) allowed the ground of appeal following a Tribunal decision in the assessee's own case for a previous assessment year. The Tribunal, in a similar case for the assessment year 2010-11, had remitted the issue back to the Assessing Officer for fresh consideration due to lack of clarity on the element of income from subscription charges. The Tribunal, in the present case, followed the previous decision and remitted the issue back to the Assessing Officer for fresh consideration. The appeal of the Revenue was partly allowed for statistical purposes.

In conclusion, the Tribunal ruled in favor of the assessee, remitting the issue back to the Assessing Officer for fresh consideration based on previous decisions and lack of clarity on the income element from subscription charges. The judgment highlighted the importance of determining the actual income element before allowing TDS credit, emphasizing a thorough examination of financial statements and ledger accounts to establish the income position accurately.