9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 1121 - AT - Income TaxCredit of TDS - Diductor deducted the TDS in the subsequent year - Income was shown in the ITR for the earlier year - CPC cannot grant credit of TDS appearing in Form 26AS for the earlier/subsequent A.Y unless the return has been correctly filed and TDS has been correctly shown - HELD THAT - As assessee has shown revenue from the invoice as income during the year under consideration itself. The deductor may have deducted tax in subsequent A.Ys, but the fact of the matter is that since the assessee has shown income, the assessee has every right to get credit of TDS - we direct the AO to verify the claim and allow credit of TDS if the income is shown in the year under consideration. Income taxable in India - taxability of receipts from sale of software - We direct the Assessing Officer to consider the claim of the assessee in light of the decision of the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt Ltd 2021 (3) TMI 138 - SUPREME COURT . We hold accordingly.
Issues involved:
1. Non-granting of TDS credit of Rs. 16,58,287/-. 2. Taxability of receipts from the sale of software. Summary: Issue 1: Non-granting of TDS credit of Rs. 16,58,287/- The appeal by the assessee is directed against the order of the CIT(A), Delhi-42 dated 08.02.2022 pertaining to A.Y 2019-20. The primary issue is the non-granting of TDS credit amounting to Rs. 16,58,287/-. The assessee, a company incorporated in the USA and engaged in the sale of software, had offered the income to tax and claimed corresponding TDS credit in its return for the year under consideration. However, the Centralized Processing Centre (CPC) did not allow the TDS credit because the tax was deducted by the customers in the subsequent A.Y 2020-21, and thus the credit appeared in Form 26AS of A.Y 2021. The CIT(A) upheld the denial of TDS credit. The assessee cited a co-ordinate bench decision in a similar group case where the Tribunal allowed the TDS credit under identical circumstances. The Tribunal, after considering the orders of the authorities below, noted that the assessee had raised the invoices and recognized the income in the year under consideration. The Tribunal directed the Assessing Officer to verify the claim and allow the TDS credit if the income was shown in the year under consideration. Issue 2: Taxability of receipts from the sale of softwareThe additional ground raised by the assessee pertains to the taxability of receipts from the sale of software, claimed as not taxable in India based on the Supreme Court decision in Engineering Analysis Centre of Excellence Pvt Ltd Vs. CIT 432 ITR 471 [SC]. The Tribunal acknowledged that the decision was not available during the assessment proceedings or before the first appellate authority. The Department's representative opposed this claim, citing the Supreme Court decision in M/s Gurjagravures Private Limited, which held that non-claim of exemption by the assessee cannot be assumed to have been considered by the Income-tax Officer. The Tribunal considered the rival submissions and noted that the Supreme Court decision in Engineering Analysis Centre of Excellence Pvt Ltd was a subsequent interpretation of law, which constitutes "a mistake apparent from the records" as per CBDT Circular No. 68 dated 17.11.71. The Tribunal directed the Assessing Officer to consider the assessee's claim in light of the Supreme Court decision and allowed the appeal. In conclusion, the Tribunal allowed the appeal of the assessee, directing the Assessing Officer to verify the TDS credit claim and to consider the taxability of software sale receipts in light of the Supreme Court's decision. The order is pronounced in the open court on 23.06.2023.
|
