2024 (7) TMI 1532 - AT - Income Tax

Rectification u/s 254 - Denial of TDS credit - no income accrued in respect of the credit notes, assessee is not eligible to claim refund of the corresponding TDS credit - revenue submit that as per Sec. 199 r/w Sec. 190 191 and Rule 37BA, TDS credit can be allowed only in the assessment year in which the corresponding income is offered to tax - HELD THAT - Income to the extent of credit notes would never accrue to the assessee and therefore, credit thereof should be allowed in full to the assessee. The Rule 37BA would not apply to the facts of the case. The application merely suggest an alternative mechanism which is nothing but an application seeking review of the order which is impermissible. The revenue is merely contesting the adjudication of Tribunal without establishing any mistake apparent on the face of the order that would require our indulgence u/s 254(2). The pleas raised in the application, in our opinion, do not constitute mistake apparent from record. The provisions of Sec. 254(2) has limited application to rectify mistake apparent from record which is absent here.Application stand dismissed.

Summary

The Appellate Tribunal in Chennai allowed the assessee to claim TDS credit even if income did not accrue. The revenue's application seeking review of the order was dismissed as it did not establish any mistake apparent on the face of the order. The Tribunal found that the provisions of Sec. 254(2) did not apply in this case. The order was pronounced on 26th July, 2024.