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2022 (7) TMI 400 - HC - Income TaxTDS deducted in the name of the managing partner of the petitioner firm has not been given credit to in the name of the firm - HELD THAT - This writ petition will stand disposed of directing that on a proper application being made, the Income Tax department will provide a link for uploading the documents necessary for transfer of credit of TDS from the managing partner of the petitioner firm to the account of the firm, subject to compliance with all procedural formalities. Proceedings, if any, initiated against the petitioner for recovery of amounts due under Ext.P1 order of assessment shall be kept in abeyance for a period of two months to enable the petitioner to avail the option under Rule 37BA(2) of the Income Tax Rules.
Issues involved:
Transfer of TDS credit from managing partner to firm's account under Rule 37BA of Income Tax Rules. Analysis: The petitioner firm was aggrieved by the TDS deducted in the name of the managing partner not being credited to the firm. The works were initially executed in the name of the managing partner, and tax deductions were made in his name by the Government department. The court considered the provisions of Rule 37BA of the Income Tax Rules, which allow for the transfer of credit under certain procedures. The Standing Counsel for the department highlighted the procedure under sub-rule (2) of Rule 37BA, stating that compliance with this procedure would enable the transfer of credit. The court directed that upon a proper application, the Income Tax department should provide a link for uploading necessary documents to transfer the TDS credit from the managing partner to the firm's account, subject to fulfilling all procedural requirements. The judgment disposed of the writ petition by ordering the Income Tax department to facilitate the transfer of TDS credit as per Rule 37BA(2). It further instructed that any recovery proceedings initiated against the petitioner under a previous assessment order should be put on hold for two months to allow the petitioner to complete the necessary steps under the said rule. This decision ensures that the petitioner firm can avail the option to transfer the TDS credit to the firm's account, thereby resolving the issue raised in the petition.
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