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TMI Blog2022 (8) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the assessing officer, as against the claim of TDS total credit from Emtici Engineering Ltd. and Prayas Engineering Ltd. vide Indemnity Bond dated 21.03.2016. Thus it cannot be said the assessing officer has not conducted proper enquiry before passing the above assessment order. In our considered view the assessing officer has clearly issued notices u/s. 143(2) from time to time calling from various details and on receipt of the reply from the assessee, with relevant records passed the above assessment order, which cannot be said neither erroneous order nor pre judicial to the interest of the revenue. Further we could see the assessee has followed Rule 37BA procedures by obtaining Indemnity Bond which containing the name, PAN No. of the person to whom credit is to be given amount of TDS and reasons for giving credit to such person. As rightly held in the case of Naresh Bhavani Shah (HUF) [ 2017 (7) TMI 819 - GUJARAT HIGH COURT] that these conditions in brief are that the deductee files a declaration with the deductor in this respect, such declaration would contain the details of the person entitled to the credit and the reasons for giving such credit and lastly the deducto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order u/s. 143(3) of the Act passed on 22.03.2016 in your case for A.Y. 2013-14 It is observed that in AY 2013-14, consequent upon the Scheme of Arrangement amongst Elecon Engineering Company Ltd. (assessee), Elecon EPC Projects Ltd., and Emtici Engineering Ltd. sanctioned by the Hon'ble Gujarat High Court, M/s Emtici Engineering Ltd. had transferred income of Rs.54,24,12,511/-and corresponding TDS credit of Rs.3,28,13,759/- to you, and you had transferred income of Rs.24,86,42,464/- and corresponding T.D.S. credit of Rs.1,59,01,794/- to M/s Elecon EPC Projects Ltd. As against the net income of Rs.29,37,70,047/-- (54,24,12,811- 24,86,42,464) received by you, on account of transfer from Emtici Engineering Ltd., and transferred to Elecon EPC Project Ltd., you had offered income of Rs.25,19,38,366/- for taxation and claimed entire TDS credit of Rs. 1,69,11,965/-(3,28,13,759 - 1,59,01,794) thereon, in your return of income for A.Y, 2013-14. You have not disclosed income of Rs.4,18,31,681/- (29,37,70,047 - 25,19,38,366) in your return and this amount has not been added to your income in the asstt. Order. It therefore, appears that this assessment order is erroneous in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23,08,06,802 23,08,06,802 Total commission income of Gear and MHE business of Elecon Engineering Co. Ltd. and Elecon EPC Projects Ltd. E (A+D) 48,27,45,168 Add: Service tax at the rate of 12.36% F 5,96,67,303 Total commission income including service tax on which TDS has been deducted G (E+F) 54,24,12,471 5.1. Thus the total commission income including service tax on which TDS has been deducted of Rs. 54,24,12,511/-. Thus, there is no case for non disclosure of income of Rs. 4,18,31,681/- as mentioned in the show cause notice. Further the assessing officer has conducted through enquiry after verification of records. Vide assessee replies letter dated 26.11.2015, 27.04.2015 and also filed an Indemnity Bond stating that the TDS credit of Rs. 1,69,11,960/- from Emtici Engineering Ltd. and Rs. 34,90,979/- from Prayas Engineering Ltd. were claimed by the assessee company and the same is not being claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 439.866.607 432,686.516 0 Emtici Engineering Lid. 22.41 1 ,753 7,292,475 15.119,278 0 15,119,278 TOTAL 11,783,963,635 4471159J082 11,336,804,553 5,472,973,676 5,863,830,877 7. One more allegation of the Ld. PCIT is that the assessing officer failed to follow section 199 of the Act and Rule 37BA do not provide for any exception in the case of mergers/demergers. Thus, the assessing officer has not made proper enquiry and verification. Therefore invoking Expalantion-2 to section 263 of the Act, this impugned revision order has been passed. 8. The ld. A.R. Mr. Mehul K. Patel submitted this finding of the PCIT is totally baseless. The assessing officer before passing the assessment order and made thorough enquiry of the transaction and also availed an Indemnity B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he procedure envisaged 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 a: source where the TDS certificate shows the name and PAN of some other person. 9. Per contra, the Ld. D.R. Mr. James Kurian appearing for the revenue supports the order of the Ld. PCIT and pleaded to uphold the same. 10. We have given our thoughtful consideration and perused the materials available on record including the Paper Book filed by the assessee. The only reason for revising the assessment order dated 22.03.2016 passed by the assessing officer is that pursuant to the scheme of arrangement sanctioned by the Hon ble High Court of Gujarat, M/s. Emtici Engineering Ltd. had transferred its income of Rs. 54,24,12,511/- and corresponding TDS credit of Rs. 3,28,13,759/- to the assessee for the Assessment Year 2013-14. Similarly, Emtici Engineering Ltd. transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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