Tribunal Grants TDS Credit to Assessee, Sets Aside Earlier Order

The Tribunal set aside the order withdrawing the credit of TDS granted under s. 143(1)(a) of the Income Tax Act by passing an order u/s 154. It held that the TDS credit should be granted to the assessee alone, as the certificates were not in the truck operators/owners' names. The Tribunal directed the AO to allow the TDS credit amount, emphasizing that the TDS amount was borne by the assessee, disclosed in the relevant year, and the TDS certificates were in her name.

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Issues Involved:
The judgment involves the issue of withdrawal of credit of TDS u/s 154 of the Income Tax Act, 1961.

Summary:

Issue 1: Withdrawal of TDS Credit

The appeal was filed against the order withdrawing the credit of TDS granted under s. 143(1)(a) of the IT Act by passing an order u/s 154 of the Act. The assessee acted as a transporting agent, arranging trucks and charging commission. The AO disallowed credit of TDS proportionately to undeclared freight receipts, restricting it to declared income. The CIT(A) held that TDS credit can only be given on income assessed and that the assessee failed to comply with s. 203 requirements. The Tribunal found that the TDS amount was borne by the assessee, disclosed in the relevant year, and TDS certificates were in her name. It concluded that the credit for TDS should be granted to the assessee alone, as the certificates were not in the truck operators/owners' names. The Tribunal set aside the order under s. 154, directing the AO to allow the TDS credit amount.

This comprehensive summary outlines the issues involved in the judgment and provides a detailed analysis of the Tribunal's decision on the withdrawal of TDS credit under the Income Tax Act, 1961.

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