9911796707
TMI Blog2023 (2) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... in the income tax return. As per the assessee, it has shown the advance money as income in the Financial Year 2016-17 corresponding to 2017-18. In this regard, we note that sub-rule (3) to the rule 37BA of Income Tax Rule r.w.s. 199 of the Act provides that 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. Accordingly assessee should be allowed the benefit of TDS credit in the AY 2017-18 subject to the verification. Hence, the ground of appeal of the assessee is allowed in the terms of the above direction. - ITA No. 418/AHD/2022 - - - Dated:- 18-1-2023 - Shri Waseem Ahmed, Accountant Member For the Assessee : Shri MukundBakshi, A.R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration has executed work contract of Rs.4,44,48,833/- which was offered to tax. However, the party has also given the advance of Rs.3.50 crores to the assessee which was shown as liability in the books of accounts. However, the party has deducted TDS on the entire amount i.e. works executed of Rs.4,44,48,833/- and advance of Rs.3.50 crores aggregating to Rs.7,94,48,833/- only. The amount of TDS of Rs. 7 lac was attributable on the advance received by the assessee for Rs.3.50 crores. The assessee while filing the return of income has taken the credit of TDS deducted on the advance amount of payment without offering corresponding income of Rs.3.50 crores in the return of income. Thus, the AO did not allow credit of TDS amount of Rs.7 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Year 2016-17 corresponding to AY 2017-18 and therefore the amount of TDS credit should be allowed in the AY 2017-18. 9. On the other hand the Ld. DR vehemently supported the order of the authorities below. 10. I have heard the rival contentions of both the parties and perused the materials available on record. There is no dispute to the fact that the assessee has shown advance of Rs.3.50 crores in the year in respect of which TDS was deducted by the corresponding party. Admittedly, the assessee is not eligible of the amount of TDS deducted on the amount of advance received by the assessee as the corresponding income was not offered to tax. Up to this, there is no dispute raised by the assessee. The next controversy arises when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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