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TMI Blog2017 (5) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... nst two separate orders of the ld. CIT(A)-1 , Jaipur dated 03-02-2016 for the assessment years 2011-12 2012-13 raising following grounds of appeal. ITA No. 492/JP/2016 A.Y. 2011-12 1. That on the facts and in the circumstances of the case, the ld. CIT(A) has erred in law and facts in not giving credit of TDS amount of ₹ 2,16,481/- u/s 199 of the Act which was deducted in the name of appellant being co-owner of property. 2. That on the facts and in the circumstances of the case, the ld. CIT(A) has grossly erred in law and facts in wrongly reduce the total TDS credit while CBDT clarified that the entire TDS benefit (in case of co-owner) was to be given the person in whose name the TDS was deducted. Hence, order is based on conjectures and surmises. 3. That on the facts and in the circumstances of the case the ld. CIT(A) has grossly erred in law and facts and did not deal with the affidavit / declaration and return filed by the co-owner as well as contest are not disputed. The same issue was also raised in assessment year 2006-07 and the same was not allowed in appeal. ITA No. 493/JP/2016 A.Y. 2012-13 1. That on the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed the claim of TDS proportionately which was allowed by the ld. CIT(A). I have gone through the order of the ld. CIT(A) in ITA No. 469/11-12 for the assessment year 2006-07 very carefully. It may be mentioned that the facts of that case are distinguishable from the facts of the instant case under consideration as in that the ld. CIT(A) quashed the assessment itself as there was no escapement of income. Thus the said decision of ld. CIT(A) is of no help to the appellant. (iv) It is seen from the assessment order that the AO in view of the provision of Section 199 of the Act has allowed only proportionate credits of TDS relating to the rental income pertaining to the appellant. It would be appropriate to reproduce here the provisions of Section 199(1) as under:- [Credit for tax deducted 199 (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Govt. shall be treated as payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the owner of property or of the unit-holder, or of the shareholder, as the case may be. (iv) It may be mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to deduction of tax referred to sub rule (1) and shall keep the declaration in his safe custody. 3(i) Credit fro tax deducted at source and paid to the Central Govt. shall be given for the assessment year for which such income is assessable (ii) Where tax has been deducted at source and paid to the Central Govt. 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 Govt. 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] (vi) Therefore, as per Sub-rule 2 of Rule 37BA, the credit for the TDS is to be allowed to the person in whose hands the corresponding income is to be taxed and not to the deductee. The abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on which TDS made by the JICS Ltd. is ₹ 2,85,062/-. As against this property, you have disclosed rental income of ₹ 1,30,449/- being 1/9th share stating that the property let out belonged to 19 persons including yourself. In these situation, as per provisions of Section 199(1) of I.T. Act, TDS claim is allowable in proportion to income shown by you only. Thus the allowable TDS credit to you will be ₹ 12,027/- and the balance TDS claimed by you at ₹ 2,16,481/- is proposed to be disallowed. Conclusively, the AO observed that as per provisions of Section 199(1) of the Act, it has been established on record that the assessee has made excess claim in his return of income which is not allowable. According to the AO, the assessee is eligible for TDS in proportion to his share of rental income declared only which comes to ₹ 12,533/- (Rs. 2,38,133/19). Thus the excess TDS claimed and allowed earlier amounting to ₹ 2,25,600/- (Rs. 2,38133 minus ₹ 12,533) plus interest granted u/s 244A amounting to ₹ 5,063/- totaling to ₹ 2,30,663/- is withdrawn. In short, the AO thus disallowed TDS claim of the assessee amounting to ₹ 2,16, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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