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TMI Blog2016 (4) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... aged IVRCL to execute the works does not take away the fact that the contract receipts constitute its turnover and the income therefrom was assessable in the hands of the assessee. It is also observed by the learned CIT(A) that it is irrelevant whether the project resulted in a profit for the assessee or whether the assessee chose to sub-contract it to IVRCL on a no-margin basis. With these observations and also by following the decision of the jurisdictional High Court in the case of CIT V/s. Bhooratnam & Co.(2013 (1) TMI 478 - ANDHRA PRADESH HIGH COURT ), the CIT(A) directed the Assessing Officer to give credit for the TDS to the assessees. We concur with the reasoning given by the CIT(A) for allowing the claims of the assessees for TDS credit. - Decided in favour of assessee - ITA No.182/Hyd/2015, ITA No.183/Hyd/2015 - - - Dated:- 11-3-2016 - SHRI V.DURGA RAO, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER For The Appellant : Shri B.Kurmi Naidu DR For The Respondent : Shri V.Raghavendra Rao ORDER Per V.Durga Rao, Judicial Member : These appeals filed by the Revenue are directed against similar but separate orders of the Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal filed by the assessees. The relevant portion of the order of the CIT(A) is extracted hereunder- 7. I have considered the facts on record and the submissions of the AR. Sec.199 (1) of the Act provides that any deduction of tax made in accordance with the provisions of Chapter XVII of the Act and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made. Under sub section (3) of Section 199, the CBDT may, for the purpose of giving credit in respect of tax deducted at source or' paid in terms of the provisions of Chapter XVII of the Act, make such rules as may be necessary, including the rules for the purpose of giving credit to a person other than those referred to in sub section (1) and sub section (2) and also the assessment year for which such credit may be given 8. Rule 37BA of the Rules framed under Section 199(3) of the Act (introduced with effect from 01-04-2009 by Income Tax (Sixth Amendment) Rules, 2009 by the CBDT) is as follows: Credit for tax deducted at source for the purposes of section 199. 37BA. (1) Credit for tax deducted at source and paid to the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of - (i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority: and (ii) the information in the return of income in respect of the claim for the credit subject to verification in accordance with the risk management strategy formulated by the Board from time to time. 9. By the Income Tax (8th amendment) Rules, 2011, the CBDT amended Rule 37 BA and in sub rule (2), for clause (i), the following clause was substituted: i) Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of the assessee and that on the same logic, due credit should also be given for the tax deducted at source involved in those certificates. The High Court upheld this view and held that credit for TDS could not be denied to the assessee while assessing the contract receipts mentioned in the certificates as income of the assessee. 15. In the appellant's case, the credit has been claimed in the hands of the JV and not the constituent member. However, the ratio of the above decisions applies to the appellant: credit for TDS has to be given to the appellant since the payments on which TDS had been made had been taken into account while assessing the income of the appellant. 7. Being aggrieved, Revenue carried the matter in appeal before us. 8. But for the amounts involved, factual background involved in the other appeal concerning CR18G IVRCL JV, is the same, and the TDS involved for which credit was claimed by the assessee, but disallowed by the Assessing Officer, therein was ₹ 76,90,348. 9. Learned Departmental Representative relied on the order of the Assessing Officer whereas the learned counsel for the assessee strongly supported the order of the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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