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TMI Blog2025 (2) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Appellate Tribunal (ITAT), denying the Appellant credit for Tax Deduction at Source (TDS) amounting to Rs. 30,10,549/-. 2. The Appellant was incorporated in the year 1975 and since then has been carrying on the business as advertising agent rendering services to clients in the filed of marketing, advertising, public relations and publicity. The Appellant's agency is fully accredited by INS, All India Radio and Doordarshan. 3. By an Agreement dated 5th April, 2002, the Appellant transferred the business of advertising and all other related services to M/s. Imageads Services Pvt. Ltd., (ISPL). Although the business relating to advertising and publicity was transferred to ISPL, the business activity of ISPL had to be routed thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. The AO had completed the Assessment under Section 143 (3) of the Act, determining the income as 'Nil'. By an Order dated 30th December, 2008, the AO while completing the Assessment, did not give credit for TDS amounting to Rs.30,10,549/-. 7. Being aggrieved by the Order dated 30th December, 2008, the Appellant preferred an Appeal to the Commissioner of Income Tax (Appeal) [CIT(A)], Mumbai, on 29th January, 2009. The CIT(A) dismissed Appellant's Appeal by an Order dated 8th October, 2009. 8. Being aggrieved by the said Order dated 8th October, 2009 of the CIT(A), Mumbai, the Appellant filed an Appeal before the ITAT, Mumbai on 4th January, 2010. 9. The ITAT, by an Order dated 20th August, 2010 dismissed the Appeal. The Order date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and paid the tax accordingly. 14. Ms. Sathe further submitted that neither any TDS credit was claimed nor was allowed in the hands of ISPL. 15. Ms. Sathe further submitted that the Appellant had claimed credit for the TDS amount since Assessment Year 2003-04 and the credit for the same was being allowed to the Appellant in the scrutiny Assessment Orders passed under Section 143 (3) of the Act for Assessment Years 2003-04, 2004-05 and 2005-06. 16. In support of her submissions, Ms. Sathe, relied upon the following judgements:- (a) Transmission Corpn. of A. P. Ltd. v/s. Commissioner of Income Tax 1999 (105 Taxman) 742 (SC); (b) Principal Commissioner of Income Tax-4, Chennai v/s. Kal Comm. (P) Ltd., 2021 (127 taxmann.com) 102 (Madra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer, the Commissioner (Appeals) as also the Tribunal has held against the Appellant in denying the benefits of the TDS amounting to Rs. 30,10,549/- as claimed by the Appellant on the amounts as alleged to have been received by it on behalf of ISPL. It is not in dispute that the income corresponding to the TDS was not offered to tax by the appellant. It is stated to have been offered to tax by ISPL alongwith the TDS. The Appellant has not placed on record as to what was the exact position in respect of the returns of the ISPL qua the said amount and whether the ISPL, in offering the relevant income, has claimed TDS or otherwise. 21. Admittedly, in the present case, the assessee has filed a NIL return. It would not require an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the various decisions cited before us. There is no dispute to the fact that an amount of Rs.30,10,549 has been claimed by the assessee being TDS from advertisement. There is also no dispute to the fact that the corresponding income of Rs.23,10,50,922 has not been reflected in the accounts of the assessee for which the Assessing Officer rejected the claim of credit for TDS of Rs.30,10,549 which has been upheld by the CIT(A). 9. We find the provisions of sections 198 and 199 of the Income-tax Act, 1961 read as under: "198. All sums deducted in accordance with [the foregoing provisions of this Chapter] shall, for the purpose of computing the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 14. However, in the instant case the assessee has not at all disclosed any such income either in the current year or in the subsequent year either directly or indirectly. Therefore, these decisions are of no help to the assessee. In this view the matter and in view of the detailed reasoning given by the CIT(A), we do not find any infirmity in his order. Accordingly, we uphold the same. The ground raised by the assessee is accordingly dismissed." 23. Insofar as the decisions relied on behalf of the Appellant is concerned, having perused such decisions, in our opinion, in the facts and circumstances of the case, the said decisions are wholly not applicable. We discuss these decisions. 24. In Kal Comm. (supra) the High Court has record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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