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TMI Blog2023 (1) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the benefit of tax deducted at source is availed once and that too, by the right person, who is chargeable to tax in respect of such income. It is just to streamline the procedure for giving effect to this intent and rule out the possibility of taking any inappropriate credit for the amount of tax deducted at source, firstly, by the recipient who is not chargeable to tax and secondly, by the person who is rightly chargeable to tax in respect of such income, that the procedural provision has been put in place in Rule 37BA(2). One needs to draw a line of distinction between substantive provision [section 199 read with Rule 37BA(2) without proviso] and the procedural provision [proviso to Rule 37BA(2)]. Adverting to the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed to the assessee, who has been subjected to tax in respect of such income. This ground is allowed. - ITA No.675/PUN/2022 - - - Dated:- 19-1-2023 - Shri R.S. Syal, Vice President And Shri S.S. Viswanethra Ravi, Judicial Member For the Assessee : Shri Pramod Shingte For the Revenue : Shri Ramnath P. Murkunde ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 20-07-2022 passed by the ld. CIT(A) in National Faceless Appeal Centre, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter also called the Act ) in relation to the assessment year 2021-22. 2. The only issue pressed by the ld. AR is against not allowing credit for tax deducted at source amounting to Rs.2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .37,42,048/- earned from deposits made with the amount gifted by the assessee. Considering the provisions of section 64, the assessee suo motu included such interest income of Rs.37.42 lakh in his total income and claimed credit for the proportionate tax deducted at source at Rs.2,80,656/-, which got denied by the authorities on the ground that the mandate of Rule 37BA was not fulfilled. 5. Section 199(1) of the Act, with the marginal note `Credit for tax deducted , provides through sub-section (1) that the amount of tax deducted at source on the amount of income shall be treated as payment of tax on behalf of deductee. Sub-section (3) of section 199 is relevant for our purpose, whose material part states that: `The Board may, for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person. (iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. 6. A careful perusal of sub-rule (2) indicates that where the income, on which tax has been deducted at source, is assessable in the hands of a person other than deductee, then credit for the proportionate tax deducted at source shall be given to such other person and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g credit to the other person is to ensure that the benefit of tax deducted at source is availed once and that too, by the right person, who is chargeable to tax in respect of such income. It is just to streamline the procedure for giving effect to this intent and rule out the possibility of taking any inappropriate credit for the amount of tax deducted at source, firstly, by the recipient who is not chargeable to tax and secondly, by the person who is rightly chargeable to tax in respect of such income, that the procedural provision has been put in place in Rule 37BA(2). One needs to draw a line of distinction between substantive provision [section 199 read with Rule 37BA(2) without proviso] and the procedural provision [proviso to Rule 37B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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