2015 (11) TMI 280

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....t, a sum of Rs. 29,98,50,937/- was paid as mobilization advance. The National Highways Authority of India by virtue of Section 194C of the Income Tax Act, 1961 (hereinafter referred to as "the Act" for brevity), deducted a sum of Rs. 59,12,958/- towards TDS after obtaining Bank guarantee from the Contractor and credited the said amount to the account of the contractor with the Department. The assessee filed his returns for the assessment year 2002-2003 declaring a loss of Rs. 1,00,95,230/-. In the said returns, he has shown total receipts under the contract as Rs. 7,32,14,129/-. In fact, he approached the Assessing Authority and sought for a certificate under Section 197 of the Act on the gro und that there will be no income for the said as....

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....ear. Since the amount received as advance is not income of the assessee but the amount deducted is with reference to the amount that is paid to the assesse e which is the same as the assessee paying advance tax, the provisions of Section 237 of the Act would come into operation and the assessee would be entitled to all the benefits ensured in that Section and the assessee would be entitled to interest also. Accordingly, the appeal was allowed. Aggrieved by the said order, the revenue is in appeal in ITA.No.819/2007. 4. Learned counsel for the revenue assailing the impugned order contends that by virtue of Section 199 of the Act, the TDS has to be adjusted only in respect of the amount offered to tax in the particular assessment year. In re....

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....d a refund of Rs. 14,93,568/- out of the TDS amount. He declined to pay the balance amount on the ground that it is adjustable in the future years as and when the assesse offers to tax. If the amount of Rs. 29,98,50,937/- is a mobilisation advance and not an income at all, the question of paying income tax would not arise. When the gross receipts of Rs. 7,32,14,128/- is offered and in that assessment year he has suffered loss, the question of paying any tax on the said amount also does not arise. He has passed an order for refund of Rs. 14,93,568/- accepting the loss returns of the assesse. But he was in error in not refunding the balance amount on account on the ground that it is liable to be adjusted in future years. If Rs. 14,93,568/- wa....