TaxTMI 
TaxTMI 
2016 (4) TMI 569
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....Hyderabad, both dated 19.12.2014, for the assessment year 2011-12. Since a common issue is involved in both these appeals concerning two assessees, who are partners of a joint venture, these appeals are being disposed of by this common order for the sake of convenience. 2. The only common issue involved in these appeals relates to disallowance of TDS credit by the Assessing Officer, and the grievance of the Revenue is against direction of the CIT(A) to the AO to allow TDS credit to the assessees. 3. Facts of the case, common for both these appeals, as taken from the appeal ITA No.182/Hyd/2015 concerning IVRCL CR 18G Consortium, in brief, are that the assessee is a joint venture created by an agreement dated 19.8.2008 between IVRCL Inf....
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.... 6. On appeal, the learned CIT(A) directed the Assessing Officer to give credit for the TDS and allowed the appeal filed by the assessees. The relevant portion of the order of the CIT(A) is extracted hereunder- "7. I have considered the facts on record and the submissions of the AR. Sec.199 (1) of the Act provides that any deduction of tax made in accordance with the provisions of Chapter XVII of the Act 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. Under sub section (3) of Section 199, the CBDT may, for the purpose of giving credit in respect of tax deducted at source or' paid in terms of the provisions of Chapter XVII of the Act, make such ....
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....om an asset held in the name of a deductee being a partner of a firm or a karta of a Hindu undivided. family, is assessable as the income of the firm, or Hind undivided family, as the case may be; (d) the income from a property, deposit, security, unit or share held in the name of a deductee is owned jointly by the deductee and other persons and the income is assessable in their hands in the same proportion as their ownership of the asset: Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax referred to in sub-rule (1). (ii) The declaration filed by the deductee under clause (i) sh....
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....nd in sub rule (2), for clause (i), the following clause was substituted: "i) Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee" 10. This amendment has done away with the specified four clauses in the pre-amended Rule 37BA which restricted the benefit of the rule only in four specified situations. It has thus widened the scope of the rule 37 BA thereby enabling the credit of taxes to the actual payee in whose hands the income is assessable and not restricting t....
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..... [2013] 357 ITR 396 (AP). In this case, the assessee had entered into a JV agreement for the purposes of preparing and submitting a tender. The Assessing Officer refused to give credit for TDS on the ground that some of the certificates belonged to the JV and some other certificates were in the names of directors and did not relate to the assessee-firm/company. The ITAT accepted the contention of the assessee that the income included in the TDS certificates had been considered for the purpose of determining the total income of the assessee and that on the same logic, due credit should also be given for the tax deducted at source involved in those certificates. The High Court upheld this view and held that credit for TDS could not be denied....
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....putation of the assessee; and that the fact that the contract receipts were given credit in the Profit & Loss Account of the assessee. He further observed that there is no requirement in the law that the assessee itself should execute the works and it is not possible for any person, leave alone, a legal entity like a consortium, to physically execute mammoth contracts running into cores on its own. He also observed that the very fact that the assessee engaged IVRCL to execute the works does not take away the fact that the contract receipts constitute its turnover and the income therefrom was assessable in the hands of the assessee. It is also observed by the learned CIT(A) that it is irrelevant whether the project resulted in a profit for t....