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TMI Blog2022 (6) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... ders giving proper opportunities to the assessee and in accordance with law within a period of 12 weeks from the date of receipt of this order. X X X X Extracts X X X X X X X X Extracts X X X X ..... PBM Polytex Ltd. 27500 2013-14 27500 10. AHM06453G Ambica Pharma Mchines Pvt.Ltd. 11043 2013-14 11043 11. AHMB00776G Bhagwati Autocast Ltd. 12360 2012-13 12360 12. AHMB00986G Ghafgwati Spherocast Pvt.Ltd. 12360 2012-13 12360 13. AHMB03444A Byte Technosys Pvt.Ltd. 191 2013-14 191 14. AHMC00216G Cama Motors Ltd. 3933 2013-14 3933 15. AHMD090246B Dev Information Technology Pvt.Ltd. 2500 2013-14 2500 16. AHMK05907G Kamdar Carz Pvt.Ltd. 28373 2013-14 28373 17. AHMN00340E N.B.Commercial Enterprises Pvt.Ltd. 2809 2012-13 2809 18. AHMN00340E N.B.Commercial Enterprises Pvt.Ltd. 5618 2013-14 5618 19. AHMN00423D Nirantar Securities Pvt.Ltd. 3594 2013-14 3594 20. AHMN03802F NKP Pharma Pvt.Ltd. 5281 2013-14 5281 21. AHM000736B Office of the D.D.G.V.T.M.Gujarat 529 2013-14 529 22. AHMS900508E Sagar Powertex Pvt.Ltd. 6000 2013-14 6000 23. AHMS02391E Shree Rama Multi Tech Ltd. 2247 2013-14 2247 24. AHMS15729A Sumiran Foods Pvt. Ltd. 6350 2013-14 6350 25. AHMU00061F Uniexcel Agencies Pvt.Ltd. 5260 2013-14 5260 26. AHMX00027G Xduce Infotech Pvt.Ltd. 2825 2013-14 2825 27. MUMK00345C Khimji Vis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. They desire to get things done manually through AO year after year for TDS as per example below ['X' being TDS of 'Y' being income] TDS Credit sought by the appellant say for five years Year 0 Year 1 Year 2 Year 3 Year 4 X(0) X(0) X(0) X(0) X(0) X(1) X(1) X(1) X(1) X(2) X(2) X(2) Therefore, TDS credit being claimed in year 1 but commensurate income may or may not be shown even in next year, it may be partly in year 2 or 3. In other words, the TDS credit say of Year - 0 continue to figure for next 3-4 years depending on the assessee as to when it receives the concerned income. Similar will be the case for Year -1, wherein part TDS credit of Year -1 and Year-0 are claimed. In Year-2, part TDS credit of Year-2, Year- 1 and Year-0 claimed. The issue has compounding complexity and it will be more complex if we go back to Year(-1) and Year (-2), Year-0 being base year say 2014-15. For instance, the credit of TDS deducted in A.Y. 2012-13 is being claimed in A Y. 2014-15. Therefore AO is also not accepting the reality of situation. AO is not giving credit for TDS of A.Y. (year I) as income is not shown fully in year (Year-1) so part credit is given, sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, I decide to direct the AO to grant credit of any TDS deducted in A. Y. 2014-15 provided the commensurate receipt is also brought to tax in A.Y. 2014-15. Similarly, the credit for TDS deducted in A.Y. 2015-16 should be granted in A.Y. 2015-16 without leaving out any commensurate income for assessment in A.Y. 2016-17. The Form No.26AS would not be causing any problem to either party provided the deductor has uploaded the correct details in TDS returns. The appellant has to interface with AO only in case certain mistakes crept in because of wrong punching while uploading TDS details by the deductors. The All Gujarat Federation of Tax Consultants vide communication dated 28/04/2017 has urged CBDT to direct the AOs to grant credit for the TDS if the same is reflected in 26AS of tax payer. While concurring with this proposal dated 28.04.2017, it is my opinion that the related bills should also be part of total turnover for the related assessment year. The TDS and the income has to go hand in hand. Therefore, while adjudicating ground no. 1 & 2 of this appeal, I direct the AO to give TDS credit in A.Y.2014-15 for the deductions made in F.Y. 2013-14 by ensuring that the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the TDS credit whereas the corresponding income is not offered for the A.Y. 2014-15. Therefore, the Ld. CIT(A) is correcting the denying the benefit to the assessee. 8. We have given our careful consideration and perused the material available on record. This issue of the TDS credit is no more res integra, since this issue is been settled by Jurisdictional High Court in the case of Naresh Bhavani Shah (HUF) vs. CIT, reported in (2017) 396 ITR 589 (Guj.). For better understanding, the judgment of the Hon'ble Jurisdictional High Court in the case of Naresh Bhavani Shah (HUF)(supra) is reproduced hereunder: "6. As is well known, Chapter XVIIB of the Act pertains to tax deduction at source. This part contains detailed provisions for collection of tax at source and depositing with the government revenue and other related provisions. We may refer to the relevant provisions contained thereunder. Section 199 pertains to credit for tax deducted. Relevant portion thereof reads as under: "(1) Any deduction 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 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be treated as payment of tax on behalf of the person from whose income the deduction was made or the owner of the security or of the depositor or of the owner 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 furnished by the deductor to the income-tax authority or the person authorized by such authority. (2) (i) If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isaged therein. However, one can gather that there is no dearth of power with the department to grant credit of tax deducted at source in such a genuine case. We are not suggesting that the requirements of sub-rule 2 are not to be followed before such benefit can be granted. Invariably in all cases such procedure 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. 11. 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 Rs.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 that he has not claimed any credit of the tax deducted at source on such income for the said assessment year." 9. On going through th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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