9911796707
TMI Blog2017 (7) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... ocedure would have to be completed before a person can rightfully claim credit of tax deducted at source where the TDS certificate shows the name and PAN of some other person. In the present case, however, many years have passed since the event arose. The facts are not seriously in dispute. The HUF has already offered the entire income to tax. The department has also accepted such declaration and taxed the HUF. In view of such special facts and circumstances, we direct the department to give credit of the said sum of 5,42,800/- to the petitioner HUF deducted by way of tax at source upon Shri Naresh Bhavanji Shah filing an affidavit before the department that the sum invested by the RBI does not belong to him, the income is also not his and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 7,83,635/- claimed by the assessee for the said assessment year, an amount of ₹ 5,42,800/- represented the TDS carried out by RBI on the said investments made by the HUF but in the name of Naresh Bhavanji Shah. The department while processing the return under section 143(1) of the Act did not grant the weightage of such TDS since the PAN did not match. 2.4 The petitioner further points out that the return filed by said Naresh Bhavanji Shah in his individual capacity showed total TDS of ₹ 30,42,697/- but he did not claim the benefit of the said TDS of ₹ 5,42,800/- and resultantly claimed TDS only of ₹ 24,99,897/-. 2.5 In view of such facts, the petitioner wrote to the Assessing Officer on 06.11.2013 and pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of tax at source. Interest income in relation to such tax was offered by the petitioner in the return filed. The Assessing Officer accepted the return and taxed the income. The department now cannot deny the credit of TDS on the ground of mismatch in the PAN. He submitted that not granting benefit to the petitioner would amount to double taxation since Naresh Bhavanji Shah has not claimed any such credit in his return. 4. On the other hand, learned counsel Shri M.R. Bhatt for the department opposed the petition contending that the order passed by the Commissioner does not suffer from any error. The Commissioner while exercising revisional powers cannot travel beyond the statutory provisions which do not permit granting credit of TDS in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter, make such rules as may be necessary, including the rules for the purposes 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." 7. Under sub-section (1) of Section 200 any person deducting tax at source would pay within the prescribed time the said sum to the credit of the Central Government under sub-section (3) of Section 200 such person would file periodic statements of tax deducted at source. Sub-section (1) of Section 203 requires every person deducting tax at source to issue certificate to the deductee within the prescribed time. Section 206AA carries the title Requirement to furnish Permanent Account Number. Various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of the property or unit holder or the share holder as the case may be. Sub-section (3) of Section 199 however permits a deviation authorizing the power to make rules in respect of giving credit of tax deducted at source or the year during which the credit of such tax deducted at source should be granted. In exercise of such powers, Rule 37BA of the Income Tax Rules 1962 has been framed, relevant portion of which reads as under: "37BA. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person. (iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. 10. It can thus be seen that under sub-rule 2 of Rule 37BA where whole or 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 could be given to such other person and not to the deductee provided the three conditions contained therein are satisfied. These conditions in brief ..... X X X X Extracts X X X X X X X X Extracts X X X X
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