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TMI Blog2016 (6) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee cannot claim credit for the TDS unless and until the income in relation to which TDS, was made was offered to tax in the relevant year. Since the assessee is found to be a del cre dere agent, the role of the asessee, as observed by the CIT(A) in the impugned order, does not cease simply on booking the order for the seller or the delivery of goods to the purchaser, but extents till the time the sale proceeds are realized by the seller from the buyer. Considering the nature of the assessee’s business, as a del cre dere agent, in which actual receipt of the brokerage would depend on the actual realization of the sale proceeds by the seller from the purchaser, as claimed by the assessee and accepted by the CIT(A), assessee is justified i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axation since the brokerage amount of ₹ 18,79,778/- was taxed on accrual basis as per the TDS certificates. The AO added the difference under the mis-conception that the difference represented the amounts paid to the assessee while in fact they are the amounts debited on account of non payment by the buyers. 4.3 On perusal of the relevant parties account, I agree with the contention of the appellant. AO has erred in ignoring the debits made to the assessee s account by the seller parties. He failed to appreciate that the credit debit balances in the books of the sellers were not on account of brokerage alone but after adjustment of the brokerage against the amounts due from buyers for which the appellant was responsible to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich TDS, was made was offered to tax in the relevant year. Since the assessee is found to be a del cre dere agent, the role of the asessee, as observed by the CIT(A) in the impugned order, does not cease simply on booking the order for the seller or the delivery of goods to the purchaser, but extents till the time the sale proceeds are realized by the seller from the buyer. Considering the nature of the assessee s business, as a del cre dere agent, in which actual receipt of the brokerage would depend on the actual realization of the sale proceeds by the seller from the purchaser, as claimed by the assessee and accepted by the CIT(A), assessee is justified in following cash system of accounting, finding it to be appropriate for its business ..... X X X X Extracts X X X X X X X X Extracts X X X X
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