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TMI Blog2024 (8) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration of current year business loss - AO is directed to verify the claim of the assessee and to consider the current year business loss while computing the assessed income as per law. - Shri Kul Bharat, Judicial Member And Shri Brajesh Kumar Singh, Accountant Member For the Assessee : Sh. Ketan K. Ved, CA For the Revenue : Sh. Subhra Jyoti Chakraborty, CIT-DR ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the assessee is directed against the order of Learned Commissioner of Income Tax(Appeals)-8, New Delhi, dated 04.02.2015 pertaining to Assessment Year 2011-12. 2. The grounds of appeal raised by the assessee reads as under:- Addition of Rs. 10,75,12,135/- to the total income 1. The learned CIT(A) erred in not deleting the addition made by the Assessing Officer as undisclosed income of Rs. 10,75,12,135. 2. The learned CIT(A) erred in observing that the appellant is not following the correct accounting standard. 3. The learned CIT(A) erred in not appreciating the fact that the entire income as reported in Form 26AS is offered to tax by the appellant and hence question of taxing undisclosed income does not arise. 4. Without prejudice to the above, the learned CIT(A) erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cile the same. The assessee submitted that the same was due to the mistake of the client. The AO held that it was apparent that the assessee had not disclosed Rs. 10,75,12,135/- of worth of sales leading to understatement of income. The AO, accordingly, added back the same to the income of the assessee as done in the earlier assessment year. This is the main grievance of the assessee in the appeal. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). 5. The Ld. CIT(A) after considering the facts of the case directed the AO to verify the claim of the assessee and allow the TDS as per sub-rule-3 and Rule 37BA of the I.T. Rules. The ld. CIT(A) also observed that if the assessee wants to claim TDS, it has to offer corresponding receipts during the year. The relevant discussion of the ld. CIT(A) in para no.3 is reproduced as under I have considered the assessment order, written submissions filed by the Ld. AR of the appellant and also oral submissions made by the Ld. AR of the appellant. Ld. Assessing officer tabulated the total sales as per profit loss account disclosed by the appellant and sales as per TDS Certificates furnished by the appellant. To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing against the appellant and there was some change in the TDS due to revised TDS return filed by the deductors. However, from the chart submitted by the Ld. AR of the appellant, it is clear that TDS amount was deducted against the huge amounts shown as billed or payable to the appellant but, this amount is not reflecting in the P/L account. The simple issue before me is, appellant is claiming the Tax deducted at source in the current year. However, it is not showing the corresponding receipt in the same year. If the appellant has claimed credit for amount of Tax Deducted at Source in a particular year then, the corresponding receipt in respect of the said amount of Tax Deducted at Source should also be declared as income in the P/L account for the same year. Appellant cannot choose on its will to claim the credit of TDS in one year and declared the corresponding receipt in some other years. The taxes must be paid in the year in which it is due. The issue is continuously raised by the Ld. Assessing officer from the AY 07-08 onwards. In earlier years, Hon'ble ITAT has set-aside this issue to the Ld. Assessing officer to check the reconciliation filed by the Ld. AR of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the concerned year and the AO may allow the claim in accordance with law. The relevant paragraphs of the order is reproduced hereunder for ready reference:- The present two appeals are directed at the instance of assessee against the separate orders of even date i.e. 29.1.2013 passed by the Learned CIT(Appeals) on the appeals of assessee for assessment years 2007-08 and 2009-10. The issues agitated by the assessee in both the appeals are common, therefore, we heard them together and deem it appropriate to dispose of them by this common order. The first common grievance of the assessee is that Learned CIT(Appeals) has erred in confirming the addition of Rs. 29,76,191 and Rs. 26,31,234 in assessment years 2007-08 and 2009-10 respectively. 2. The brief facts of the case are that the assessee company is engaged in providing marketing services including consultancy for sales promotions, product exhibiting and organizing and arranging the launching of products and services by its clients. It has filed its return of income on 31.10.2007 and 29.9.2009 declaring an income of Rs. 15,02,170 and Rs. 55,38,482 in assessment years 2007-08 and 2009-10 respectively. In assessment year 2007-08, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed. We confronted the learned counsel for the assessee to show us the provision under which ITAT can given such direction in an assessment year for which the appeal is not pending before the ITAT. The ld. Counsel submitted that ITAT has plenary power to issue any directions which are in the interest of justice. He drew our attention towards section 254 of the Act. However, we do not find any force in the contentions of the learned counsel for the assessee. Assessing Officer has rightly observed that credit of TDS can be granted only when income corresponding to such TDS is assessed to tax. The assessee will be at liberty to approach the Assessing Officer for claiming the such credit in the concerned year and Assessing Officer may consider the prayer of assessee sympathetically in accordance with law. Ground No. 1 in both the appeals is disposed off. 8. Respectfully following the above decision of the Tribunal in assessee s own case (supra) on this issue, we hereby hold that credit of TDS in a financial year may be granted only when income corresponding to such TDS is assessed to tax in the said financial year. Further, the assessee will be at liberty to approach the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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