TaxTMI 
TaxTMI 
2017 (1) TMI 986
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....cts. In ITA No. 991/JP/15 (A.Y. 2011-12): (I) That under the facts of the circumstances of the case the Ld. CIT(A) has erred non granting the credit of TCS credit claimed for members though their sales/purchase considered in hands of firm and not considering provision of section 199/rule 37BA for credit of TDS/TCS. 2. In respect of A.Y. 2010-11, briefly the facts of the case are that the AO in his order passed u/s 154 of the Act has rejected the claim of the appellant in respect of tax collected at source of Rs. 4,92,071/- for the reason that the TCS certificates are in different names and carry different PANs. The assessee carried the matter in appeal before the ld. CIT(A) and contended that the licence of liquor were issued by the Excise Department to various persons whose names have been mentioned in the TCS certificates. However, these persons are members of the firm in the name of M/s Jai Ambey Wines where the sales have been accounted and the credit for TCS should be given to the appellant firm as these individuals have not claimed the credit of the TCS. The ld. CIT(A) however did not agreed to the contentions of the ld. AR and his relevant findings are contained as unde....
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.... contentions of the assessee were again rejected by the Ld. CIT(A) and the relevant observations are contained at para 4.3 of his order which is reproduced as under: "I have gone through the statement of facts, grounds of appeal and written submissions carefully. It is seen from the detailed submission made by the appellant that the TCS was made in the names of partners of the appellant firm and not in the name of the appellant. The appellant has relied mainly on section 199 r.w. Rule 37BA. It can be seen that both section 199 ad Rule 37BA speak about the tax deducted at source and not TCS. Further, the rule 37BA it is clearly mentioned that credit for the tax deducted at source shall be given to a person to whom payment has been made or credit has been given (deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income tax authority or the person authorised by such authority. In the case under consideration, the deductees were partners of the appellant firm and the deductor has furnished information stating that tax has been collected at source in the names of partners of the appellant firm. As far as sub-rule (2) of Rule 37BA is c....
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....rtner's copy of account duly confirmed. (3) Thus when complete sales, purchases of all members/partners considered in hands of firm, than credit for TCS of all individual partners should also be granted in hand of the firm, since none of the partners have considered/taken credit in their personal hands of such TCS deducted. (4) That the above view has been confirmed by Hon'ble High Court of Andhra Pradesh in case of CIT-I vs. Bhooratnam & Co. (2013) 216 Taxman 6/29 Taxman.com 275 (AP). (5) That the decision of Hon'ble Jodhpur ITAT Bench in the case of ACIT vs. M/s Krishanlal Meel & others in ITA No. 370, 401/Jodh/2015 decided on 04.09.2015 wherein identical issue has been decided by the Hon'ble Bench in favour of the assessee. (6) That the decision of Hon'ble Jaipur ITAT Bench in the case of ITO vs. Harish Kumar Sachdeva, in ITA No. 416, 826/JP/2012 which was decided on 14.03.2016 wherein identical issue has been decided by the Hon'ble Bench in favour of the assessee. 2.4 The relevant finding of the Coordinate Bench in ACIT vs. Shri Krishanlal Meel & Party (supra) is reproduced as under: "(8) We have considered the rival submissions, gone through the orders of th....
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.... this Chapter. (2) Nothing in this section shall prejudice the charge of tax on such income under the provisions of sub-section (1) of section 4." Section 199 reads as under: "(1) Any deduction made in accordance with the foregoing provisions of this Chapter 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 depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be. (2) Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made. (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." Section 206C reads as under: "(1) Every person, being a ....
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.... for the purposes of generation of power and not for trading purposes. (1B) The person responsible for collecting tax under this section shall deliver or cause to be delivered to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner one copy of the declaration referred to in sub-section (1A) on or before the seventh day of the month next following the month in which the declaration is furnished to him. (2) The power to recover tax by collection under sub-section (1) or sub-section (1C) or sub- section (1D)] shall be without prejudice to any other mode of recovery." Rule 37BA(2)(i) of Income tax Rules as amended by the Income Tax (Eight amendment) Rules 2011 reads as under: "Where under any provisions of the Act, the whole or any part of 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 tax deducted at source, as the case may, shall be given to the other person and not to the deductee. Provided that the deductee files a declaration with the deductor and deductor reports the tax deduction in the name of the other person in the informati....