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TMI Blog2018 (12) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... d under section 10(37) of the Act and also the fact that the HUFs have declared the compensation received on account of compulsory acquisition of agricultural land in their return of income and claimed exemption under section 10(37) there is no reason for AO to deny credit for TDS merely on the ground that no income has been offered to tax in the hands of the assessee. As compensation received on account of compulsory acquisition of agricultural land is exempt from tax under section 10(37) - HUFs have declared the said compensation in the return of income. It is also undisputed that the HUFs have not claimed credit for TDS in their return of income. Therefore, when the facts are clear in respect of exemption of particular receipt in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 14. The grounds raised by the assessee are extracted below:- That the land acquisition officer (S.D.O.) has compulsorily acquired agricultural land made TDS thereon and issued TDS certificate to the assessee. The agricultural land in question belongs to HUF of the assessee whereof assessee is Karta and partly of Trimurti Trust whereof assessee is trustee. In the 7/12 extract of the land assessee's name is mentioned without any adjunct as Karta. The entire compensation amount of agricultural land is issued in the name of assessee and the same is exempt u/s 10(37) of I. T. Act and no TDS is required to be made on this amount. However as TDS is made, TDS certificate is issued in the name of assessee and the same reflects i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te authority. 3 3. Before the learned Commissioner (Appeals), the assessee submitted that it has claimed credit for TDS on the basis of TDS certificate issued by the SDO, Amravati, for TDS deducted on account of compensation paid for acquisition of agricultural land. The assessee further submitted that the Government of India has acquired agricultural land owned by Shri S.B. Atal (HUF), Shri J.B. Atal (HUF), Shri R.B. Atal (HUF) and Shri M.B. Atal (HUF) of the purpose of development of Airport and TDS has been deducted under section 194LA on compensation paid for compulsory acquisition of agricultural land. While deducting TDS, the SDO has remitted TDS by using the PAN of Shri Ratanlal Biharilal Atal, in his individual capacity. But the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o give them credit. AO cannot refuse to give credit to the other person in whose hands the amount is assessable, merely because TDS has been made and certificate issued in the name of the deductee i.e. the appellant. The present AO is accordingly directed to refer the matter to concerned AO of HUF in this regard. 4. The learned Authorised Representative for the assessee submitted that the learned Commissioner (Appeals) having accepted the fact that the credit for TDS has not been claimed in the hands of the HUF failed to give direction to the Assessing Officer to give credit for TDS in the hands of the assessee when the TDS certificates are in the name of the assessee. The learned Authorised Representative further submitted that the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is the contention of the assessee that once TDS certificates are in the name of the assessee and credit for such TDS is appeared in the name of the assessee in AIR data base and also the fact that the 6 particular income is not taxable either in the hands of the assessee or in the hands of the HUF credit for TDS cannot be rejected merely on the ground that the corresponding income has not been offered to tax. 7. Having considered the arguments of both the parties, we find merit in the arguments of the assessee for the reason that when a particular income is exempt from tax in view of specific provisions provided under section 10(37) of the Act and also the fact that the HUFs have declared the compensation received on account of comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well settled dictum for procedure is the hand made of justice and it cannot be used to hamper the cause of justice. Therefore, the Revenue s contention that the assessee instead of claiming the entire TDS amount ought to have sought a correction of vendor s mistake would unnecessarily prolonged the entire process of seeking refund based on TDS credit. Therefore, we are of the considered view that the Assessing Officer erred in denying credit of TDS to the assessee. The learned Commissioner (Appeals) although accepted the fact that no other person has claimed credit in respect of such TDS failed to direct the Assessing Officer to give credit for TDS to the assessee and on the basis of TDS certificate. Hence, we set aside the order of the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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