Tribunal allows appeal, directs verification of ledger accounts and TDS credit, deems interest issues consequential.

The Tribunal allowed the appeal for statistical purposes, directing the AO to verify the ledger accounts and allow the TDS credit if the receipts and corresponding payments were accurately reflected. The issues regarding interest under Sections 234B and 234D were deemed consequential and would be addressed based on the primary issue's resolution. The appeal was thus allowed for statistical purposes.

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Issues Involved:
1. Denial of credit for TDS of Rs. 66,49,131/-.
2. Ignoring submissions by the Appellant.
3. Non-grant of TDS credit on receipts from National Highway Authorities.
4. Confirmation of interest under Section 234B and Section 234D.

Detailed Analysis:

Denial of Credit for TDS of Rs. 66,49,131/-
The Appellant challenged the order of the CIT(A) which denied the credit for tax deducted at source (TDS) amounting to Rs. 66,49,131/-. The Assessing Officer (AO) had originally denied this credit on the grounds that the Appellant did not offer the corresponding income to tax during the relevant assessment year. This decision was based on Section 199 read with Rule 37BA of the Income Tax Rules, 1962.

Ignoring Submissions by the Appellant
The Appellant contended that the CIT(A) erred by ignoring the submissions filed on 23rd August 2021. The CIT(A) held that no submissions were made, which the Appellant argued was incorrect.

Non-Grant of TDS Credit on Receipts from National Highway Authorities
The Appellant had entered into a contract with the National Highway Authority of India (NHAI) for utility shifting work. The Appellant subcontracted this work to L&T Ltd. and recorded these transactions in a separate ledger account. The Appellant argued that since there was no profit accruing from these transactions, the receipts and corresponding expenses were not shown in the Profit and Loss account. The Appellant claimed that the balance was "Nil" and thus, they were entitled to claim credit for the TDS deducted by NHAI.

The Tribunal noted that the AO and CIT(A) had denied the TDS credit because the Appellant did not credit the receipts from NHAI to the Profit & Loss account. However, the Tribunal found that the Appellant had a back-to-back arrangement with the subcontractor, resulting in no profit and thus no need to show these receipts in the Profit & Loss account. The Tribunal directed the AO to verify the ledger account showing receipts from NHAI and corresponding payments to the subcontractor and allow the TDS credit accordingly.

Confirmation of Interest under Section 234B and Section 234D
The CIT(A) confirmed the interest under Section 234B of Rs. 23,09,726/- and under Section 234D of Rs. 43,967/-. The Tribunal noted that these issues were consequential in nature and would be disposed off based on the outcome of the primary issue regarding the TDS credit.

Conclusion
The Tribunal allowed the appeal for statistical purposes, directing the AO to verify the ledger accounts and allow the TDS credit if the receipts and corresponding payments were accurately reflected. The issues regarding interest under Sections 234B and 234D were deemed consequential and would be addressed based on the primary issue's resolution. The appeal was thus allowed for statistical purposes.

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