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TMI Blog2025 (1) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... ire income of the minor son of the assessee was required to be clubbed in the hands of the assessee, the assessee clubbed the income earned by the minor and also the foreign investment made by him in his return of income. Accordingly, the TCS collected in the name of the minor was also claimed by the assessee. However, the CPC while processing the ITR u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) denied the claim of TCS collected in the hands of the minor child and accordingly raised a demand of Rs. 10,29,700/-. 4. The assessee filed an appeal before the Ld. Addl./JCIT(A). The provisions of section 206C of the Act were brought to the notice of the Ld. Addl./JCIT(A). It was also brought to his notice that the government has proposed to introduce a provision in section 206C to allow the Board to notify the rules for cases where credit of tax collected are given to person other than the collectee. However, to ensure that this provision is not misused, credit of TCS of the minor shall only be allowed where the income of the minor is being clubbed with the parent as under sub-section (1A) of section 64 of the Act which states that in computin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following grounds: 1. The Ld. CPC erred in not giving TCS Credit of Rs 9,50,200/- which was collected in the Name & PAN of my minor child whose income is otherwise liable to tax as my Income. 2. The Amendment to S. 206C be applied retrospectively being curative amendment which has been brought in only to streamline the procedure for giving TCS Credit. 3. The Ld. CIT-A ought to have appreciated CBDT Circular No 14 (XL35) of 1955 dated 11th April 1955, wherein it is stated that no tax shall be collected that more tax than what is legitimately due and thereby ought to have directed the AO to grant the Credit of TCS which was collected in the hands of Minor child. 4. The appellant craves its right to add to or alter the grounds of appeal at any time before or during the course of hearing of the case. 7. The Ld. Counsel for the assessee at the outset submitted that it is an admitted fact that the income of the minor child was clubbed in the hands of the assessee, therefore, the TCS collected in the hands of the minor child should be given due credit in the hands of the assessee. He submitted that refusing the TCS credit of Rs. 9,50,200/- collected in the name and PAN of the mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the Act, the income of the collectee is assessable in the hands of any person other than the collectee, the credit for the tax collected at source, shall be given to such other person and not to the collectee: Provided that the collectee shall file a declaration with the collector and the collector shall report the tax collection in the name of the other person in the information relating to collection of tax referred to in sub-rule (1). (b) The declaration filed by the collectee under the proviso to clause (a) shall contain the name, address, permanent account number of the person to whom credit for the tax collectible at source is to be given, amount of payment in relation to which credit is to be given and reasons for giving credit to such person. (c) The collector shall issue the certificate for collection of tax at source under sub-section (3) of section 206C of the Act, in the name of the person in whose name credit is shown in the information relating to collection of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody."; (c) in Form No. 27EQ, in the Annexure, after Verification, in the Notes, after Note 8, the following Note sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Central Government, credit for such tax shall be given for the assessment year for which the income is assessable to tax. (ii) Where tax has been collected at source and paid to the Central Government and the lease or license is relatable to more than one year, credit for tax collected at source shall be allowed across those years to which the lease or license relates in the same proportion. (2A) Notwithstanding anything contained in sub-rule (2), for the purposes of sub-section (IF) or, sub- section (IG) or, sub-section (1H) of section 206C, credit for tax collected at source shall be given to the person from whose account tax is collected and paid to the Central Government account for the assessment year relevant to the previous year in which such tax collection is made] (3) Credit for tax collected at source and paid to the account of the Central Government shall be granted on the basis of (i) the information relating to collection of tax furnished by the collector to the income-tax authority or the person authorised by such authority, and (ii) the information in the return of income in respect of the claim for the credit, subject to verification in accordance wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 802/- constitutes of an amount of Rs. 15,78,602/- collected for self and TCS of Rs. 9,50,200/- collected in the hands of his minor child whose income was clubbed with his income. Since the income of the minor child was required to be clubbed in the hands of the assessee, the assessee claimed the TCS collected in the name of minor child which was denied by the CPC. We find the Ld. Addl./JCIT(A) admitted that such income of the minor child has been clubbed with the income of the assessee and the assessee has claimed such TCS collected in the hands of the minor child. However, he dismissed the claim on the ground that the Memorandum explaining the provisions in the Finance Bill, 2024 regarding credit of tax collected to be given to the persons other than the collectee, is applicable from 1st day of January, 2025 and since no other mechanism has been provided to allow such TCS credit in the Act till the said amendment which took effect only from 1st day of January, 2025, therefore, such claim of the assessee cannot be entertained. In our opinion, since the income of the minor child was clubbed with the income of the assessee, the corresponding TCS collected in the hands of the minor al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t just confined to the question whether the company is liable at all but may also relate to other facets including the extent of liability and also with regard to computation. If the submission is accepted, every time the dispute will be required to be taken up in proceedings such as a petition under Article 226 of the Constitution, which Civil Appeal No. 8945 of 2019 @ SLP(C) No.20728 of 2019 Genpact India Private Limited v. Deputy Commissioner of Income Tax & Anr. normally would not be entertained in case of any disputed questions of fact or concerning factual aspects of the matter. The assessee may thus, not only lose a remedy of having the matter considered on factual facets of the matter but would also stand deprived of regular channels of challenges available to it under the hierarchy of fora available under the Act. 14. We, therefore, reject the submissions advanced by the appellant and hold that an appeal would be maintainable against the determination of liability under Section 115QA of the Act." 18. In view of the above discussion and respectfully following the decisions cited (supra), we hold that depriving the assessee of due credit for TCS in the hands of the minor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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