2011 (7) TMI 1218 - AT - Income Tax

Tribunal rejects Revenue appeals, orders credit for TDS certificates, absolving interest liability.

The Tribunal upheld the findings of the CIT (A) for the assessment years 2004-05 and 2008-09, dismissing all three appeals filed by the Revenue. The ... - Issues involved: Three appeals filed by the Revenue against separate orders of CIT (A)-VII, Hyderabad, on the orders of the assessing officer u/s 143(3) of the Act for the assessment year 2004-05 and 2008-09, and on the order of the assessing officer u/s 143(3) read with section 153A of the Act for the assessment year 2004-05.The appeals raised common and identical grounds, including the contention that the order of the CIT (A) was erroneous on facts and in law. The CIT (A) was criticized for determining that if the Joint Venture did not file the Return of Income (ROI) and claimed credit for Tax Deducted at Source (TDS) certificates, then the credit had to be allowed in the hands of the assessee. It was argued that Rule 37BA of the Income-tax Rules did not specify allowing TDS credit to a joint venture when the deductee was a private limited company. The Tribunal found that a similar issue had been decided in favor of the assessee in a previous case, where it was held that the Assessing Officer must give credit for the TDS certificate filed by the assessee company or director, and if such credit was given, the assessee was not liable for interest under sections 234B and 234C of the Act. Consequently, the Tribunal upheld the findings of the CIT (A) for the years under consideration and dismissed the appeals filed by the Revenue.In conclusion, all three appeals filed by the Revenue were dismissed, and the order was pronounced in the Open Court on 28-7-2011.