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TMI Blog2024 (7) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... g TDS credit as per Form 26AS. This is for the simple reason that, the contractor deducted TDS on the amount credited or paid to the account of the contractee, whereas the contractee recognizes revenue in terms of the percentage of completion of works. The credit for TDS should be allowed for the A.Y in which such income is assessed or assessable to tax irrespective of TDS credit available in Form No.26AS. In the present case, the appellant claimed that it has recognized revenue in terms of percentage completion method and also claimed TDS credited in proportion to income recognized for the relevant A.Ys. The appellant also claims that the excess TDS credit, if any, has been carried forward to subsequent A.Ys. Therefore, we are of the consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d recognizes revenue in the books of account in accordance with applicable accounting standard/ICDS. The assessee entered into long term contract with NCC-Matrix Consortium and the works started in the financial year relevant to A.Y 2018-19 and continued upto A.Y 2023-24. Accordingly, the assessee recognizes the income in terms of percentage completion method of contract and claimed TDS to the extent the income was recognized in the books of account for the relevant A.Y. The excess TDS credit available as per Form 26AS has been carried forward to subsequent A.Ys. The return of income filed by the assessee for both the A.Ys was processed u/s 143(1) and intimations were issued. The Assessing Officer/CPC while processing the return of income u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant A.Y and return of income is mainly due to the method of accounting followed by the assessee, as per which the appellant is following percentage completion method for recognizing the revenue which des not match exactly with the payment made or credited by the contractors. The learned Counsel for the assessee submitted that the appellant has carried out long-term contract awarded by the NCC-Matrix Consortium which runs from A.Y 2018-19 to A.Y 2023-24. The appellant has recognized the income as per percentage completion method, whereas the contractor has deducted the TDS on payment made/credited to appellant account. The assessee has explained the reasons for difference in TDS as per Form 26AS and ITR filed by the assessee. But, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion method revenue recognition, it may not match with contract receipts and relevant TDS credited as per Form 26AS. We find merit in the submission of the assessee for the simple reason that when the appellant is following percentage completion method for recognition of the Revenue, it may not match with the income from operations or receipts from its business and corresponding TDS credit as per Form 26AS. This is for the simple reason that, the contractor deducted TDS on the amount credited or paid to the account of the contractee, whereas the contractee recognizes revenue in terms of the percentage of completion of works. If the claim of the assessee is correct that it is following percentage completion method, then the income offered by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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