9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 585 - AT - Income TaxNon-grant of credit of tax deducted at source - HELD THAT -The assessee claimed the corresponding TDS credit in the impugned assessment year. Since the payment was released by Reliance Industries Ltd. in the subsequent assessment year after deduction of tax at source the TDS amount was reflected in Form 26AS for assessment year 2017-18. In fact the TDS certificate issued by Reliance Industries Ltd. TDS amount was shown for assessment year 2017-18. To a specific query raised by us learned counsel appearing for the assessee made a statement at the Bar that neither the assessee has claimed TDS credit for the amount in dispute in assessment year 2017-18 nor AO has granted any such credit. On a perusal of Rule 37BA it is observed that TDS credit has to be granted in the year in which the corresponding income is taxable. As per the accounting principle followed by the assessee the income relating to the TDS is taxable in assessment year 2016-17. In fact the assessee has offered the amount to tax in assessment year 2016-17. That being the factual position emerging on record the assessee must get credit for the TDS in the impugned assessment year. More so when the assessee has claimed that the TDS credit for the amount in dispute has not been granted in assessment year 2017-18. We direct the AO to grant credit for TDS to the assessee after factually verifying that credit for such TDS has not been granted to the assessee in assessment year 2017-18. Assessee appeal is allowed.
Issues:
Non-grant of credit of tax deducted at source amounting to Rs.26,61,695. Analysis: The appeal pertains to the assessment year 2016-17 and involves the issue of non-grant of credit for tax deducted at source (TDS) amounting to Rs.26,61,695. The assessee had claimed credit for TDS in the return of income filed for the said assessment year, but the claim was rejected by the Centralized Processing Centre (CPC) as it was not reflected in Form 26AS. The assessee's rectification application was also rejected, leading to an appeal before the Commissioner of Income-Tax (Appeals) which was dismissed. The assessee contended that it follows an accrual basis for recognizing revenue and had raised an invoice on Reliance Industries in March 2016. Although the income was accounted for in the books for the assessment year 2016-17, the payment was released in the subsequent assessment year after TDS deduction. The assessee argued that as per Rule 37BA, TDS credit should be allowed in the year in which the corresponding income is taxable. The assessee relied on relevant case laws to support its claim. On the other hand, the Departmental Representative argued that since the deductor had deducted tax in the subsequent assessment year and the TDS amount was reflected in Form 26AS for that year, the TDS credit could not be granted in the assessment year 2016-17. After considering the submissions and perusing the record, it was observed that the income related to the TDS was taxable in the assessment year 2016-17 as per the accounting principle followed by the assessee. The TDS amount was reflected in Form 26AS for the subsequent assessment year, but the assessee had not claimed credit for it in that year. Therefore, the assessee was entitled to credit for the TDS amount of Rs.26,61,695 in the assessment year 2016-17. The Assessing Officer was directed to grant the credit after verifying that it had not been granted in the subsequent assessment year. In conclusion, the appeal was allowed, and the order was pronounced on 10th November 2022.
|
