9911796707
TMI Blog2023 (3) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... from such transaction has been reported in the present impugned AY. To rest the adjudication, it suffice to voice that, the combined reading of Section 199(3) r.w. Rule 37BA(3) makes the position of law clear that, credit for TDS is available in the year in which the income is reported and as a corollary, credit of TDS (deducted therefrom) cannot be deferred to some other assessment year. In the instant case, the Revenue proposed to allow the credit in the subsequent AY 2021-22 i.e. when the TDS is shown to have been credited in the form 26AS. As stated by the Ld. AR, the corresponding income will not be found to be recorded in the subsequent AY and therefore such action would belie the letter and spirit of Section 199(3) and Rule 37 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 143(1) of the Act by the Asstt. DIT, CPC Bengaluru [for short AO ] for assessment year [for short AY ] 2020-21. 2. Without duplicating grounds from appeal memo, it shall suffice to articulate that, the sole and substantive ground of appeal is directed against denial of TDS credit [tax deducted at source] by CPC. 3. We have heard rival contentions of both the parties; and subject to the provisions of rule 18 of Income Tax Appellate Tribunal Rules, 1963 [for short ITAT, Rules ] perused the material placed on records till the date of conclusive hearing and duly considered the facts of the case in the light of settled legal position forewarned to either parties. 4. In the instant case, we observed that, 4.1 The appellant is a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit in the hand of appellant for impugned AY is examined in the light of Section 199(3) r.w. Rule 37BA(3) of the Income Tax Rules [for short IT-Rules ], it transpired clear that, the credit for tax deducted and paid to the Central Government shall be allowed to the deductee assessee for the assessment year for which such income is assessable or assessed. Therefore, we find force in the contention of the appellant that, the TDS credit is available in the assessment year where the corresponding income has been offered to tax by the assessee, and as such the TDS credit cannot be postponed to a different assessment year on the basis of reporting by the deductor, when the accrued income from such transaction has been reported in the present i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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