TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 1093
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.... law that approach of the tax authorities should be justice oriented so as to advance cause of justice. 4 The learned CIT(A) has erred in law and on facts by not appreciating the fact that the appellant is not benefitted by lodging its claim late. It is to be noted that the delay is not deliberately occasioned or on account of negligence; nor the appellant stands to benefit by resorting to delay. 5 The learned CIT(A) has erred in law and on facts while not considering that gross reimbursement of expenses aggregating Rs. 9,89,426/- have been credited in profit and loss account of the previous year, included in the total income and offered to tax and taxed in the assessment order under section 143(3). He further erred in law and on facts while not considering that section 199 mandates TDS credit to be allowed during the previous year in which the parent income is chargeable to tax; and the TDS credit of the said income is also reflected in 26AS. 6 Both the lower authorities have erred in law and on facts in passing the orders without properly appreciating the fact and that he further erred in grossly ignoring various submissions, explanations and information submitted by the....
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....,441/- + Rs. 9,333/-) issued by Bodal Chemicals Ltd on receipt of reimbursement expenditure of Rs. 5,77,594/- and Rs. 4,11,832/-. 7.1 The ld. Authorized Representative further submitted that the appellantcompany had already shown an income of Rs. 5,77,594/- and Rs. 4,11,832/- under the head "Reimbursement of Expenses". The total amount of reimbursement of expenses of Rs. 2,57,00,296/- was transferred to the Sales Account at the end of the year. Attention was further drawn to the Profit & loss account on page no. 16 of paper-book which would show that the impugned income is forming part of Sales and the same has been offered to tax. 7.2 The ld. Authorized Representative also submitted that since the appellant was not in possession of the impugned TDS Certificates, the appellant did not claim the TDS credit of Rs. 74,774/- in the return of income, though the corresponding income of Rs. 5,77,594/- and Rs. 4,11,832/-was duly shown in the Profit & loss account. He further submitted that the appellant received the impugned TDS Certificates from the Bodal Chemicals Ltd only in the month of January, 2011 and accordingly the appellant filed an application u/s 154 of the Act on 03.02.2011 ....
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....14) of the Act. He further placed reliance on the decision of Karnataka High Court in the case of CIT vs. Digital Global Soft Ltd., reported in 15 taxmami.com 78, wherein the assessee came into possession of TDS certificates, it filed an application under section 154 within two years from date of end of assessment year claiming said amount; and the Assessing Officer being fully satisfied about genuineness of certificates as said amount had been paid to Government, and assessee was not liable to pay any tax, ordered refund and the said action of the Assessing Officer was found to be correct and therefore the action of CIT in applying provisions of Section 263 was rejected. 8. On the other hand, ld. Departmental Representative supported the orders of the lower authorities. 9. We have heard the rival contentions and perused the material placed on record. The only issue in this appeal of the assessee is against the action of ld.CIT(A) in confirming the order of the ld. Assessing Officer u/s 154 of the Act, denying the credit of Tax Deducted at Source (TDS) of Rs. 74,774/-. From going through the records, we observe that the assessee has not made any claim of Tax Deducted at Source (T....
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....s had been received subsequently, it wanted credit to be given to the extent of Rs. 19,44,692. Thereafter, the Assessing officer passed an order under section 154 rectifying the intimation and gave credit of Rs. 19,44,672 towards tax deducted at source. The Commissioner, exercising his power under section 263, found fault with giving credit of the said amount as tax deducted at source, when that amount was not claimed in the returns filed by the assessee. Therefore, it modified the order under section 154 by withdrawing the credit given to the amount of Rs. 19,44,672. Aggrieved by the said order, the assessee preferred an appeal to the Tribunal. The Tribunal held that there was neither any error in the order section 154 nor any prejudice caused to the Government by giving credit for the same. Accordingly, it set aside the order of the Commissioner under section 263. The Hon'ble Karnataka High Court, while adjudicating the issue on the above facts, held as under:- "Section 139 deals with return of income. Sub-section (9) of section 139 sets out under what circumstances the return so filed is defective. Explanation to the said provision makes it clear that the tax, if any, claime....
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.... heard. If the order passed by the assessing authority is merged with the order passed by the Appellate Commissioner or Tribunal, the assessing authority has no jurisdiction to amend or rectify' the mistake in such order. [Para 8]" 10. From going through the above decision of Hon'ble Karnataka High Court in the case of Digital Global Soft Ltd (supra), we find that in the present appeal before us the issue is similar as the assessee has not claimed TDS in its regular return of income, because it was not in the possession of the TDS certificates and so much so, the deductor M/s. Bodal Chemicals Limited has not issued the TDS certificates to the assessee. It was only in January, 2011, i.e., after the end of the two years and nine months from the end of the relevant financial year that the assessee came into possession of the TDS Certificates issued by M/s. Bodal Chemicals Limited for Rs. 74,774/-. The appellant has submitted before the Assessing Officer that the amount on which TDS of Rs. 74,774/- has been deducted is duly shown in the financial statements submitted by it at the time of filing of return of income. We are, therefore, of the view that the assessee is very much eli....