9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 289 - AT - Income TaxEntitlement of TDS Credit - CIT(A) directed the AO to allow credit as per the form No. 26AS for the year under consideration and withdraw the excess credit which had already been claimed by the assessee and allowed by AO in preceding years - HELD THAT - Credit for TDS has to be allowed in the assessment year, in which the corresponding income is assessable. It is not relevant in which financial year, the tax has been deposited in Govt. account or in which year TDS certificate has been issued. The relevant thing which has to be verified is for which year the deductor has credited the income to the assessee in the TDS certificate issued and if the income is credited for relevant assessment year then TDS credit has to be allowed even if said TDS credit is appearing in Form No. 26AS in next assessment year. In instant case we find that the TDS certificates under reference filed by the assessee before the AO can be divided in three categories. First category, where the TDS has been deducted by the deductor for assessment year 2010- 11. One TDS certificate, available falls in this category. In this TDS certificate, date of credit or payment is not mentioned and only date of deposit of TDS in Government Account is mentioned as on 05/03/2010 and 05/04/2010 respectively. In the circumstances, it needs verification as to in which year the corresponding income was assessable in the hands of the assessee. Second category of TDS certificates are concerned, we find that in those certificates income has been credited or paid to the assessee in the assessment year under consideration and tax has also been deducted in assessment year under consideration i.e. AY 2011-12 , however same has been deposited in subsequent assessment year i.e. AY 2012-13. If the income corresponding to the TDS is assessable in the year under consideration, then the assessee is eligible for credit of TDS in the year under consideration, irrespective of the year in which TDS was deposited by the deductor - section 205 of the Act also support this view. According to the section 205 of the Act, where tax is deductible at the source under the provisions of the act, the assessee shall not be called upon to pay tax himself to the extent to which tax has been deducted from that income. Thus, in order to call bar of section 205 into operation, it is necessary to establish the tax has in fact deducted at source and credit of the tax deducted at source must be granted to the payee, even if the payer or deductor has not deposited the tax into Government Account. The third category of TDS certificates, where income has been credited or paid by the deductor in financial year corresponding to assessment year 2012- 13 and tax has also been deducted in the financial year corresponding to assessment year 2012-13. In those cases, the deductor has credited the income to the assessee for assessment year 2012-13, whereas assessee has claiming the credit of said TDS in assessment year 2011-12. We do not understand as how and on what basis the assessee has credited the income corresponding to those TDS certificate in the year under consideration. No documentary evidence in this regard as the corresponding income is assessable or capable of being assessed in the year under consideration, have been filed before lower authorities or before us and therefore onus is on the assessee to establish that said income corresponding to those TDS certificate was assessable in the year under consideration. We set aside the finding of the Ld. CIT(A) on the issue in dispute and restore the issue of verification of TDS certificates as to in which assessment year income corresponding to the TDS is assessable and allow credit accordingly. For verification of the assessment year in which income is assessable‟, the Assessing Officer may carry out the inquiries which he deems fit in the circumstances - It is the responsibility of the assessee also not to claim the same TDS twice. The ground No. 1 of the appeal of the assessee, is accordingly allowed for statistical purposes. Withdrawal of credit of TDS amount as already been availed by the assessee - When, the assessee has already claimed TDS credit corresponding the income offered in preceding years, though same is appearing in form No. 26AS of the year under consideration, the assessee is not entitled for credit of TDS to that extent. We accordingly, uphold the finding of the Ld. CIT(A) of withdrawing the credit of the TDS amount, credit of which has already been availed by the assessee in preceding assessment years - Decided against assessee.
Issues Involved:
1. Entitlement to TDS credit of ?2,55,60,477/- in the Assessment Year 2011-12. 2. Direction to withdraw TDS Credit of ?46,44,433/-. Issue 1: Entitlement to TDS Credit of ?2,55,60,477/- in the Assessment Year 2011-12 The assessee argued that the credit for TDS amounting to ?2,55,60,477/- should be allowed in the Assessment Year (AY) 2011-12 as the corresponding income was offered during this period. The Assessing Officer (AO) had restricted the TDS credit to ?15,20,64,111/- as per Form No. 26AS for AY 2011-12, against the claimed TDS credit of ?17,39,68,882/-. The AO allowed the credit based on Form No. 26AS, which showed TDS for the year under consideration. The Tribunal referred to Section 199 of the Income-tax Act and Rule 37BA, which state that TDS credit should be given for the AY in which the income is assessable. The Tribunal cited precedents, including the Pune Bench decision in M/s Mahesh Software Systems P. Ltd., which held that TDS credit should be given in the same year the income is assessable, irrespective of when the tax was deposited by the deductor. The Tribunal divided the TDS certificates into three categories: 1. TDS for AY 2010-11: One certificate required verification to determine the year in which the corresponding income was assessable. 2. TDS for AY 2011-12: Certificates where income was credited in AY 2011-12 but tax was deposited in AY 2012-13. The Tribunal held that TDS credit should be allowed in AY 2011-12 if the income was assessable that year. 3. TDS for AY 2012-13: Certificates where both income and TDS were credited in AY 2012-13. The assessee failed to provide evidence that the income was assessable in AY 2011-12. The Tribunal set aside the CIT(A)'s findings and directed the AO to verify the TDS certificates and allow credit accordingly. The AO must ensure no double credit for the same TDS amount across different years. The Tribunal allowed this ground for statistical purposes. Issue 2: Direction to Withdraw TDS Credit of ?46,44,433/- The assessee challenged the CIT(A)'s direction to withdraw TDS credit of ?46,44,433/-. The CIT(A) had noted that this amount had already been claimed and allowed in preceding years. The Tribunal upheld the CIT(A)'s finding, stating that the assessee cannot claim TDS credit for the same amount in multiple years. This ground was dismissed. Conclusion The Tribunal's judgment was partly in favor of the assessee. The appeal was allowed for statistical purposes regarding the entitlement to TDS credit of ?2,55,60,477/- (Issue 1), directing the AO to verify and allow the credit based on the year the income was assessable. However, the appeal was dismissed concerning the withdrawal of TDS credit of ?46,44,433/- (Issue 2), as it was already claimed in preceding years.
|
