TDS Credit Consistency: identical factual treatment requires AO to grant the claimed TDS credit and determine refund.

The note addresses TDS credit treatment where identical facts arose across two assessment years: the principle applied is consistency in tax treatment, with rectification (Section 154) and appellate review (Section 250) procedures noted as relevant mechanisms. The practical prescription is that where commission was reported as turnover and a later year received TDS-credit relief, the identical earlier-year claim should be granted; accordingly the Assessing Officer must allow the TDS credit and determine any refund consistent with the later-year computation.

---

---

Issues: Whether the disallowance of TDS credit of Rs. 1,23,700/- for Assessment Year 2022-23 should be set aside and the TDS credit granted as claimed by the assessee.

Analysis: The issue required comparison of the treatment of the assessee's TDS claim in the concerned assessment year with the treatment afforded in a subsequent assessment year where a similar claim was allowed. Relevant procedural mechanism included the rectification application under Section 154 and the appellate review under Section 250 of the Income-tax Act, 1961. The material record shows that for AY 2023-24 the assessing authority was directed to grant the TDS credit considering the commission reported by the assessee as turnover and to determine refund accordingly. The appellate order for AY 2022-23 upheld the disallowance despite the identical factual matrix and the prior favorable determination for the related year. Consistency in application of the taxation treatment and allowance of credit where identical facts and computation principles apply was taken into account in evaluating whether the earlier disallowance should stand.

Conclusion: The disallowance of TDS credit of Rs. 1,23,700/- for AY 2022-23 is set aside and the Assessing Officer is directed to grant the TDS credit as claimed by the assessee, treating the commission reported by the assessee as turnover and determining the refund accordingly; the appeal is allowed.

---