2015 (11) TMI 9

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....earned Commissioner of Income Tax (Appeals) erred in allowing the assessee's claim on credit for TDS of Rs. 2,46,80,256/-. 2.2 The ld. Commissioner of Income Tax (Appeals) ought to have appreciated the fact that credit for tax deducted at source can be given only to the extent of proportionate income offered for assessment. 2.3 Having regard to the Hon'ble High Court's decisions in the case of CIT vs. Pushpa Vijay & Anr (Ker) 67 DTR 354 (2012) wherein it is held that credit for TDS can be given only where tax is deducted on the income which is offered for assessment, the ld. Commissioner of Income Tax (Appeals) ought to have upheld the action of the Assessing Officer in disallowing the assesee's claim on credit for TDS. 3. The fact....

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....consideration also. The Commissioner of Income Tax (Appeals) observed that the Tribunal had held that the subscription charges collected by the assessee was not the income of the assessee. It was collected on behalf of M/s. Sun Network Ltd, and in-turn remitted to Sun Network Ltd. The cable operators are deducting the TDS in the name of the assessee as it was paid to the assessee. Hence, the assessee is entitled for the credit on the TDS made by the cable operators. The relevant portion of the order of the Tribunal in assessee's own case for the assessment year 2006-2007 in ITA No.884/Mds/2011, dated 21.10.2013 are reproduced:- "3. From the perusal of the facts which have not been disputed by the Revenue, it is clear that the assessee ha....

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....s such is taxable in the hands of M/s. Sun TV Network Ltd. However, the cable operators are deducting tax at source on the payments of subscription made to assessee, whereas, the assessee is remitting the gross amount to M/s. Sun TV Network Ltd., the assessee is entitled to receive credit of the tax deducted at source u/s. 199 of the Act subject to production of TDS Certificates received from respective deductors. The levy of tax on the commission received would amount to double taxation. 4. The other grounds for invoking the provisions of section 263 are consequential to the main issue discussed above. Since, we are striking the impugned order on the main issue itself, the consequential issues automatically do not survive. Thus, in view....