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TMI Blog2021 (3) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... which is appearing in the name of assessee's husband cannot be given as return of income not filed in capacity of legal heir is arbitrary, illegal and not in accordance with facts of the case. 2.2 That aforesaid observation of learned Assessing Officer is erroneous and without appreciating the admitted facts that income on which TDS has been deducted has been offered for tax in the return of income filed by the assessee and assessed as such u/s 143 (1) of the Act and therefore this TDS is belongs to the assessee only and credit of TDS certificate which merely appears in the name of husband cannot change the entitlement of credit of TDS towards assessee. 3. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts while upholding the order of learned Assessing Officer rejecting the application u/s 154 of the Act." 2. The other grounds raised by the assessee are only in the nature of arguments and contentions and not raising any issue to be adjudicated. The only issue arises in this appeal of the assessee for consideration and adjudication of the Tribunal is denial of TDS credit of Rs. 5,89,348/- which was deposited by the deductor in the PAN accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be denied in support of his contention, the Ld. AR has also referred to the section 199 read with rule 37BA of Income Tax Rules and submitted that when the income shown in the TDS Certificate was offered to tax by the assessee then TDS credit is allowable on the basis of TDS mentioned in the certificate irrespective of the fact that the TDS certificate was not in the name of the assessee. The wrong submission of PAN does not debar the claim of TDS deducted particularly when the income is included and assessed in the hands of the assessee. The Ld. AR has also referred to the Circular No. 22 of 1961 dated 08.08.1961 and submitted that the Government has accepted the recommendation of the Direct Tax Administration Enquiry Committee for granting credit/refund due to the estate of a deceased person and shall be paid to his son/widow or other legal heir on their furnishing an indemnity bond without production of succession certificate or letters of administration. The Ld. AR has pointed out that the assessee has duly produced a succession certificate granted by the Competent Court. Thus, denial of TDS credit to the assessee is unjustified and arbitrary. He has relied upon the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at source and paid to the Central Government, if the income on which tax is deducted at source and paid to the Government is offered to tax by the assessee and the deposit is made in the name of other person. The Hon'ble Andhra Pradesh High Court in case of CIT vs. Bhooratnam & Company (supra) has considered this issue in para 12-17 as under:- "12. Heard Sri J.V.Prasad, learned Senior Standing Counsel for the Income Tax Department and Sri C.P.Ramaswamy, learned counsel for the assessees. 13. S.199 (1) of the Act provides that any deduction of tax made in accordance with the provisions of Chapter XVII of the Act 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. Under sub section (3) of Section 199, the CBDT may, for the purpose of giving credit in respect of tax deducted at source or paid in terms of the provisions of Chapter XVII of the Act, make such rules as may be necessary, including the rules for the purpose 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. 14. Rule 37BA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ep the declaration in his safe custody. (3) (i) Credit for tax deducted at source and paid to the Central Government, 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 Government 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 Government 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." 15. By the Income Tax (8th amendment) Rules, 2011, the CBDT amended Rule 37 BA and in sub rule (2), for clause (i), the following clause was substituted: "(i) Where under any provisions of the Act, the whole or any part of the income on which tax ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the said receipt was assessed as income in the hand of the assessee. The Co-ordinate Bench of this Tribunal in the case of Income Tax Officer vs. T.G. Veerarabhvan (supra) has held in para 6 as under:- "6. I have heard rival submissions and considered the facts and materials on record. There is no dispute about the fact that there were four co-owners receiving the rent but the certificate for tax deducted at source was issued in the name of the assessee only. There is also no dispute about the fact that the other co-owners have not claimed the credit of their share of tax deducted at source. It is also not disputed that the amendment to section 199 permitting to adjust the tax deducted at source proportionately in the hands of the co-owners has been brought in the statute book only with effect from the assessment year 1997-98. In other words, the amendment has been brought into the statute with prospective but not retrospective effect. In these facts and circumstances I find that the lessee has issued certificate for tax deducted at source under section 194(1) deducting the tax of Rs. 2,25,000 in the name of the assessee, Shri T.G. Veeraraghavan, even though he was only a co- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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