TaxTMI 
TaxTMI 
2007 (8) TMI 4
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....rcumstances of the case, if the credit for the entire tax was not to be given to the partners, if there was any tax deducted at source remaining unabsorbed after meeting the tax liability of the firm, whether such tax should be apportioned among the partners and credit for such tax should be given to them in their individual assessments ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Commissioner (Appeals) cannot entertain an appeal with regard to the quantum/waiver of the interest levied under section 139(8) and 217(1A) of the Income-tax Act, 1961 ? 2. The assessment years relevant herein are assessment years 1972-73 and 1976-77. 3. The original assessee Shri S.P. Patel (herei....
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....o the extent relevant for the purpose herein, read thus : "Credit for tax deducted. 199. Any deduction made in accordance with the provisions of sections 192 to 194, section 194A, Section 194B, Section 194BB, section 194C, section 194D and section 195 and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security or of the shareholder, as the case may be, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under section 203 in the assessment (including a provisional assessment under section 141A), if any, made for the immediately following assessment year under this Act : Provid....
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....p;------- (ix) ------- (x) -------- (2) The credit referred to in sub-rule (1) shall not be given unless the person entitled to such credit furnishes to the Income-tax Officer a declaration in Form No.15B made by him and the shareholder concerned, together with a certificate of deduction of tax at source in Form No.19." 9. Mr.Mistry, learned counsel appearing on behalf of the assessee submitted that in the present case, admittedly the shares from which dividend income was earned stood in the name of the assessee, TDS certificates issued by the company stood in the name of the assessee and moreover, admittedly the dividend income has also been assessed in the hands of the assessee. He submitted that th....
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....in the name of any of its partner, then credit of TDS shall be given to the firm and not to the partner in whose name the share stands. Accordingly, Mr.Rao submitted that there is no infirmity in the orders passed by the authorities below and the questions referred by the Tribunal be answered in favour of the Revenue. 11. We have carefully considered the rival submissions. Under Section 199 of the Act, credit of Tax deducted at source from the dividend income and paid to the Central Government is given to the share-holder. However, the First proviso to Section 199 carves out an exception to the above principle. In this case, we are concerned with clause (ii) to the first proviso to Section 199 of the Act. The ....