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TMI Blog2017 (5) TMI 1667X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T.Act is legally untenable and cannot be sustained. TDS which is given due credit in this assessment year, the same should not be given credit during any other assessment year when income was offered for taxation - Decided in favour of assessee. - ITA No. 5842/Del/2013 - - - Dated:- 11-5-2017 - Shri S. V. Mehrotra, Vice President And Shri Sudhanshu Srivastava, Judicial Member Appellant by Shri Vishal Sehgal, CA Respondent by Shri S.K. Jain DR ORDER Per Sudhanshu Srivastava, Judicial Member This appeal has been preferred by the assessee against the order of ld. CIT(A)-XXVIII, New Delhi dated 1.8.2013 and pertains to assessment year 2009-10. 2. Brief facts of the case are that the assessee is having business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 8,99,06,816/- as on 31st March 2009 for alleged is execution of work contracts is subsequent years. The deduction on Mobilization has all along been claimed and allowed in the year of deduction on the basis of the Consistent Method of Accounting regularly followed by the Appellant. 2. That the Mobilization Advance is primarily received against furnishing of Bank Guarantees in favour of the Payee Customer for execution of civil construction work. The Mobilization advance is being adjusted proportionality from time to time as per agreement on submitting of bills to clients for work executed. The payee has a right over bank guarantees to encash it on any issue such as cancellation of work order, stopping of work and even after part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT. 6. We have heard the rival submissions and have also gone through the relevant records. We agree with the contentions of the ld. AR that the assessee s case is covered in favour of the assessee by the order of the ITAT, Visakhapatnam in the case of ACIT vs Peddu Srinivasa Rao (supra). ITAT Visakhapatnam Bench has discussed the issues at length in paragraphs 3, 4, 6, 8 and 10 of the impugned order. The relevant portions of these paragraphs are being reproduced for a ready reference:- 3. .this mobilization advance is in the nature of loan, on which interest @8% is chargeable as per the terms of sub-contract agreement. The mobilization advance is a capital receipt being in the nature of a loan and therefore, there was no legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate was issued in the year in which this mobilization amount was paid to the assessees. The Ld. Counsel for the assessee further contended that all these aspects were examined by the Tribunal in the case of Supreme Renewable Energy Limited Vs. ITO 32 DTR 140. 8. .As per amended provisions of section 199, in sub-section 1, it has been stated that any deductions made in accordance with the foregoing provisions of this chapter 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. Therefore, as per the amended provisions, once the TDS was deducted, a credit of the same to be given to the assessees, irrespective of the year to which it relates ..... X X X X Extracts X X X X X X X X Extracts X X X X
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