9911796707
TMI Blog2024 (3) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of tax at source is made and the same is deposited with the Government then the assessee becomes entitled for credit of such TDS while computing the tax liability for the period irrespective of the fact that the assessee considered that he is not liable to tax in respect of the income and, therefore, does not disclose the amount of income in his return. The Income-tax Department cannot refuse to give credit merely by contending that the income has not been disclosed in the return filed by the assessee for the assessment year. Co-ordinate Bench of ITAT in the case of Supreme Renewable Energy Limited [ 2008 (8) TMI 432 - ITAT MADRAS-C] held that assessee is entitled to TDS even if the income has not directly been offered to tax as the same was not liable to tax. Thus we hold that the assessee is entitled to credit of TDS/Withholding tax and the consequent refunds thereof. - Dr. B. R. R. Kumar, Accountant Member And Ms. Astha Chandra, Judicial Member For the Assessee : None For the Revenue : Sh. Sanjay Kumar, Sr. DR ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against the order of ld. CIT(A)-23, New Delhi dated 22.09.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant is accepting that the question of these receipts (mobilization advance) having element of income could be decided in the year in which actual offshore supplies were undertaken by the Appellant. (c) The contract is, indeed, composite/indivisible one. (d) The contact being performed by Siemens Consortium is composite/indivisible contract of which the appellant is leader and partner. (e) There will certainly be a Permanent Establishment ('PE') of the Appellant in India. (f) The part of income arising out of activities performed by the appellant, certainly accrues and arises in India. 4. The grounds raised by the assessee and the Revenue in this appeal are interrelated, they were heard together and being adjudicated by a common order. 5. The assessee is a company registered and existing under the laws of People s Republic of China. The assessee involved in procurement and sale of Rolling Stocks. Its portfolio covers the full range of vehicles - from railroad cars to metros and locomotives to trams and light-rail vehicles. 6. During Financial Year (F.Y. 2013-14), the assessee entered into a contract with IL FS Rail Limited ( IRL ). The scope of work of the assessee un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. Considering the same, the claim of credit of withholding tax should be allowed to Assessee as per provisions of the Act. 13. The Co-ordinate Bench of ITAT, in the case of Escorts Ltd. vs. Deputy Commissioner of Income tax [2007] 15 SOT 368 (Delhi) held that once deduction of tax at source is made and the same is deposited with the Government then the assessee becomes entitled for credit of such TDS while computing the tax liability for the period irrespective of the fact that the assessee considered that he is not liable to tax in respect of the income and, therefore, does not disclose the amount of income in his return. The Income-tax Department cannot refuse to give credit merely by contending that the income has not been disclosed in the return filed by the assessee for the assessment year. The relevant extract of the judgment in this regard is reproduced below: ....7. Credit for TDS must in every case be given to the assessee from whose income tax was deducted at source and paid to the credit of the Central Government. If the recipient of the income considers that he is not liable to tax in respect of the income, wholly or partly, therefore, does not disclose the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectly incidental to the acquisition in respect of machinery and therefore the same has been rightly reduced from the cost of the machinery. In this way the assessee has indirectly disclosed income and has offered for assessment. We are of the considered view that even if the income earned by the assessee has not been offered for tax being not liable for tax, the assessee is entitled for credit of TDS made in respect of that income. Accordingly, we set aside the order of the lower authorities and hold that the assessee is entitled for credit of TDS relating to interest income of Rs. 51,21,287/-. 15. The ld. CIT(A) held that the similar addition has been deleted in the case of the assessee in the yearlier Assessment Year 2015-16 where the facts are similar to the present case. The finding of the same is as under: .5.2 Ground No. 1 2: The appellant in ground number 1 and 2 has submitted that credit for TDS has not been allowed simply on the ground that no income was offered by him corresponding to tax deducted. The appellant has stated that the assessing officer in the course of the assessment order himself admitted that income is not taxable in India in paragraph 3 of the Assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
