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TMI Blog2024 (7) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... ffering the said amount of Rs.24,85,54,177/- + TDS as income of the assessee. TDS cannot be isolatedly taken in any assessment year without offering the corresponding income for taxation. With this observation, we remit the issue to the file of ld. AO for fresh consideration. Restricting the TDS being the mobilization advance received during the F.Y. 2016-17 - case of the assessee that when the issue of availability of TDS credit in the appropriate assessment year is examined in the light of Section 199(3) r.w. Rule 37BA(3) of the Income Tax Rules, it would be clear 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 - assessee contends that the TDS credit is available in the financial year where the corresponding income has been offered by the assessee - HELD THAT:- A 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 , should not be deferred to some other assessment year. In the instant case, if the Revenue has allowed the credit in the subsequent assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the Assessing Officer which is not in conformity with the provisions of Rule 37BA(3)(ii) of the Income Tax Rules, 1962. (iii). Under the facts and circumstances of the case, the Ld. CIT(A) has erred in no! appreciating the- fact that Proviso to sub-section 20 to See 155 of the Act prohibits credit of TDS in any assessment year other than the AY in which corresponding income was offered. 2. (i) Under the facts and circumstances of the case, the Ld. CIT(A) has erred in allowing credit of TDS Rs. 37,37,514/- in the AY 2017-18. ii.. Under the facts and circumstances of the case, the Ld. CIT(A) has erred in giving direction to the Assessing Officer which is not in conformity with the provisions of RuIe 37BA(3)(ii)of the Income Tax Rules, 1962 Total Tax effect: Rs.87,08,597/- 2. Facts in ground No.1 of this appeal is related to restricting the TDS of Rs 49,71,083/- on Rs 24,85,54,177/- being the sales relating to the F.Y. 2015-16. The assessee is in the business of civil constructions of commercial complexes, Industrial, Institutional and residential projects. According to A.O, there is mismatch in turnover reported as per financials and turnover as appearing in Form No. 26AS. The m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime to file the revised return. Before ld. CIT(A), the assessee has submitted extract of memorandum. Here, the assessee has offered the income to tax in earlier years and TDS was not claimed due to late payment by deductor which shall not punish the assessee by not allowing credit of TDS in the year when TDS was actually made. This will result in taxation of income but not allowing the corresponding TDS credit which will be against the provisions of the Act. Accordingly, the ld. CIT(A) observed that the contention of the assessee is found to be correct and the A.O is directed to allow TDS credit of Rs 49,71,083/- in A.Y. 2017-18 after verifying whether the corresponding income has been offered for taxes in earlier years by the assessee. Against this revenue is in appeal before us. 3. We have heard the rival submissions and perused the materials available on record. The contention of the ld. D.R. is that the income and TDS has to go together in an assessment year where the income has been offered for taxation. According to the ld. D.R., if the income is offered in earlier assessment year, the TDS has to be given credit in that assessment year only and in the present assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the method is in compliance with accounting principles and there is no escapement of income. The assessee has further stated before NFAC that the AO has resorted to restrict the TDS on mobilization of advance for the first time and departed from the principles of consistency. NFAC directed the ld. AO to verify whether the same principle has been adopted by the assessee in the past as well as during the current A.Y. and if the contention is found correct, then allow the TDS credit of Rs 37,37,514/- in respect of mobilization advance received but corresponding income offered to tax in subsequent years. NFAC further directed the ld. AO to check the principle of consistency before allowing this TDS credit and allowed the ground of assessee subject to verification as directed. 5. We have heard the rival submissions and perused the materials available on record. It is the case of the assessee that when the issue of availability of TDS credit in the appropriate assessment year is examined in the light of Section 199(3) r.w. Rule 37BA(3) of the Income Tax Rules, it would be clear that credit for tax deducted at source and paid to the Central Government, shall be given for the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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