TaxTMI 
TaxTMI 
2015 (9) TMI 1436
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....certificates were produced before the Learned AO to the tune of Rs. 12,56,396/- before the completion of assessment proceedings u/s 143(3) of the Act on 11.12.2006. This TDS of Rs. 12,56,396/- admittedly included TDS on advance received, income in respectof such advances were offered to tax in the subsequent year by the assessee in line with the method of accounting regularly employed by the assessee. Accordingly, the Learned AO granted TDS of Rs. 9,60,694/- against the certificates produced in the assessment and thereby not giving credit for TDS to the tune of Rs. 5,38,193 ( 1498887-960694) in the assessment. Later the assessee firm filed a rectification petition u/s 154 of the Act on 28.5.2008 before the Learned AO enclosing the TDS certificate for Rs. 1,01,090/- seeking credit for TDS to the tune of Rs. 1,01,090/- based on the physical TDS certificates produced. The Learned AO rejected the same by quoting the provisions of section 155(14) of the Act wherein the TDS certificates not submitted along with the return of income is to be submitted within two years from the end of the assessment year in which income was assessable. This action of the Learned AO u/s 154 of the Act wa....
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....case. For the sake of convenience, the provisions of section 199(3) are reproduced below:- "Section 199(3) - The Board may, for the purposes of giving credit in respect of tax deducted or tax paid in terms of the provisions of this Chapter, make such rules as may be necessary , including the rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and sub-section (2) and also the assessment year for which such credit may be given." For the sake of convenience, the said rule 37BA is reproduced hereunder:- Rule 37BA - Credit for tax deducted at source for the purposes of section 199 "(4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of - (i) the information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorized by such authority ; and (ii) the information in the return of income in respect of the claim for the credit, Subject to the verification in accordance with the risk management strategy formulated by the Board from time to time. " We also find that the aforesaid rule though introduced only wit....
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....evise his own order where the appellate order income-tax assessment is made more than four years after the date of the original assessment. No tax which is not leviable by the authority of law should be collected or realized by the State and, if realized by the State, should be refunded by the State. The scheme of fiscal statutes should be looked at from that point of view and, in case of injustice, the court should ensure that such injustice is rectified as far as practicable unless the same is contrary to the expressed legislative intent. The legislative intent manifested in the scheme of the Act is that the tax for agricultural income should be computed on the basis of the income computed under the Income-tax Act. Though there is no machinery providing for rectification of the order under the Act after the appellate or revisional authority has passed order under the Income-tax Act, the provisions should be read attributing ancillary and incidental powers to the authorities concerned to implement and carry into effect the major legislative intent. In such a situation, when manifest injustice is being done to the taxpayer and where the legislative intent of taxing agricultural inc....
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....ith the provisions of section 199 has not been given on the ground that the certificate furnished under section 203 was not filed with the return and subsequently such certificate is produced before the Assessing Officer within two years from the end of the assessment year in which such income is assessable, credit of TDS shall be given to the assessee on production of such certificate. Nothing contained in the proposed sub-section shall apply unless the income from which tax has been deducted has been disclosed in the return of income filed by the assessee for that assessment year. The proposed amendment shall enable the Assessing Officer to rectify the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143. As a consequence, it is also proposed to amend sub-section (9) of sect.ion 139 to provide that where the return is not accompanied by proof of the tax, if any, claimed to have been deducted at source, the return of income shall not be regarded as defective if such certificate was not furnished under section 203 to the person furnished his return of income and such person produces the certificate within a .period of two year....