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TMI Blog2024 (11) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... filing of a revised TDS return. Subject to the above, the AO is directed to allow credit of brought-forward TDS as claimed by the assessee. Appeal of the assessee is allowed. - Shri Amit Shukla, Judicial Member And Smt. Renu Jauhri, Accountant Member For the Appellant : Shri Malay Kalavadia For the Respondent : Shri Manoj Kumar Sinha (SR. DR.) ORDER PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Additional/Joint Commissioner of Income-tax (A)-4 Kolkata [hereinafter referred to as Addl. CIT(A) ] dated30.05.2024passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as Act ] for assessment year [A.Y.] 2021-22. 2. The grounds of appeal taken by the assessee are as under: Ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roleum Corporation Limited (HPCL) for setting up an ethanol plant in India. HPCL raised a bid for setting up of bio-ethanol plant in Bhatinda, Punjab in 2017 in order to tackle the issue of paddy stubble burning. The assessee being the L1 bidder, was awarded the project for which advance money of Rs 48,62,95,000/- was received from HPCL during FY 2019-20. From this advance money, TDS amounting to Rs. 97,25,900/- was deducted by the HPCL. The assessee began the initial work and offered a portion of this amount of advance received as income amounting to Rs. 3,41,57,493/- on Percentage of Completion Method in AY 2020-21. Further, corresponding credit of TDS was claimed in A.Y. 2020-21 amounting to Rs. 79,75,240/- and the balance of Rs. 17,50,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that why the corresponding party has not furnished the Revised TDS Return if the corresponding transaction is not completed and the party has received the amount in full including TDS. Why the appellant has refunded the amount including the TDS? The Appellant should pursue the matter with that party and request them to file a revised TDS Return and refund the corresponding amount of TDS to the party. As stated earlier, as per Rule 37BA, the credit of such TDS of Rs 17,50,660/- cannot be given. The Appellant has mentioned some Circulars and decisions which are old and prior to insertion of Rule 37BA as above. Hence, this part of the Ground of Appeal is DISMISSED. 6. Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he circular No. 7/2007, which enumerates the procedure of claiming refund of tax deducted under Sec. 195 in certain situations. The Ld. AR also relied upon the following judicial pronouncement related to the issue under consideration: In CIT Vs M/S ELSAMEX-TWS-SNC-JV in ITA No. 819/2007 C/W ITA No. 9/2009, Hon ble High Court of Karnataka has decided the issue relating to the claim of tax deducted on mobilization advance. Relevant portion of order is reproduced below:- From the material on record, it is clear that the assessee is a contractor who has been paid a sum of Rs. 29,28,59,937/- as mobilization advance which is not an income. But by virtue of Section 194C, TDS of Rs. 59,12,958/- was deducted and credited to the account of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was no liability to pay tax, the TDS paid is liable to be refunded and that is absolutely what the Tribunal has stated. Therefore, we do not see any justification to interfere with the orders passed. Hence, the appeal filed by the revenue is liable to be dismissed. 8. Further reliance was placed on the decision of the Hon ble Coordinate Bench in ITA No. 6708/Mum/2010 in the case of M/s Arvind Murjani Pvt. Ltd. Vs ITO Mumbai. Hon ble co-ordinate bench while deciding the issue related to allowance of credit of TDS held as under: As the amount on which tax was deducted at source is not at all chargeable to tax, then the command of section 199 will have to harmoniously and pragmatically read as providing for allowing credit for the tax ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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