2015 (11) TMI 284

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....e TDS without offering the corresponding income i.e. total receipts of Rs. 19,08,20,903/-to taxation by declaring it as total income?" 2. The facts involved in the present appeal are that during the year under consideration, the respondent (hereinafter referred to as, "the assessee") derived income from the business of erection, commissioning and installation of towers on contract basis. It filed its returns for the relevant assessment year on 29.03.2010 and the returns were processed under Section 143(1) of the Income Tax Act, 1961 (hereafter referred to as, "the Act").The Assessing Officer (AO) noticed that as per Form 26AS statement, though the total receipts declared by the assessee was Rs. 6,20,99,368/- (as opposed to Rs. 19,08,20,903....

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....nafter referred to as, CIT(A)) who, by its order dated 20.09.2012, allowed the TDS claim. The CIT(A) noted that the assessee had categorically stated that the benefit of TDS claimed by it had not been availed by M/s REPL. Thus, the CIT(A) allowed assessee's claim, on the ground that since the assessee had already paid the due taxes in M/s REPL (both companies being a part of the same group), it would be a travesty of justice to not allow the benefit of TDS to the assessee. The observations of CIT(A) are reproduced below: "4.2 I have carefully considered the submissions made by the appellant and the assessment order framed by the AO and I am of the considered opinion that there is no technicality involved in the issue and it is purely a ma....

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....ue relies on the provisions of Section 199 of the Act. The revenue also contended that in the absence of the assessee offering the corresponding income, i.e. total receipts of Rs. 19,08,20,903/- for taxation by declaring total income, the assessee's TDS claim could not have been allowed. Thus, the revenue submits, the defective TDS amount of Rs. 93,72,097/- should be disallowed and the only legitimate claim is that of Rs. 27,01,000/- against the declared total receipts of Rs. 6,20,99,368/-. 6. Having heard the submissions made on behalf of the revenue and after a perusal the orders passed by the CIT(A) and the ITAT, we are of opinion that the said orders do not call for any interference and were warranted and justified in the facts and cir....

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....efit of such claim has not been availed by M/s. REPL. Therefore, the revenue, having assessed M/s REPL's income in respect to such TDS claim cannot now deny the assessee's claim on the mere technical ground that the income in respect of the said TDS claim was not that of the assessee, given that M/s Relcom (the assessee) and M/s REPL are sister concerns and M/s REPL has not raised any objection with regard to the assessee's TDS claim of Rs. 1,20,73,097/-. 8. This Court's reasoning is supported by a ruling of the Division Bench of the Andhra Pradesh High Court in CIT v. Bhooratnam, (2013) 357 ITR 196 (AP), where the Court noted as follows: "In our view, the CIT (Appeals) and the Tribunal have rightly held that the assessee is entitled to ....