TaxTMI 
TaxTMI 
2017 (5) TMI 3
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....njectures and surmises. 3. That on the facts and in the circumstances of the case the ld. CIT(A) has grossly erred in law and facts and did not deal with the affidavit / declaration and return filed by the co-owner as well as contest are not disputed. The same issue was also raised in assessment year 2006-07 and the same was not allowed in appeal.'' ITA No. 493/JP/2016 -A.Y. 2012-13 ''1. That on the facts and in the circumstances of the case, the ld. CIT(A) has erred in law and facts in not giving credit of TDS amount of Rs. 2,41,855/- u/s 199 of the Act which was deducted in the name of appellant being co-owner of property. 2. That on the facts and in the circumstances of the case, the ld. CIT(A) has grossly erred in law and facts in wrongly reduce the total TDS credit while CBDT clarified that the entire TDS benefit (in case of co-owner) was to be given the person in whose name the TDS was deducted. Hence, order is based on conjectures and surmises. 3. That on the facts and in the circumstances of the case the ld. CIT(A) has grossly erred in law and facts and did not deal with the affidavit / declaration and return filed by the co-owner as w....
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....s of Section 199(1) as under:- ''[Credit for tax deducted - 199 (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Govt. shall be treated as 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 owner of property or of the unit-holder, or of the shareholder, as the case may be.'' (iv) It may be mentioned that by the IT (6th Amendment) Rules, 2009, w.e.f. 01-04-2009 Rule 37BA relating to credit for tax deducted at source for the purpose of Section 199 has been inserted which is produced as under:- Credit for tax deducted at source for the purpose of Section 199. 37BA. (1) Credit for tax deducted at ousrce and paid to the Central Govt. in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority. (2) (i) If the income on which tax has been deducted at sou....
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....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 verification in accordance with the risk management strategy formulated by the Board from time to time] (vi) Therefore, as per Sub-rule 2 of Rule 37BA, the credit for the TDS is to be allowed to the person in whose hands the corresponding income is to be taxed and not to the deductee. The above Rule has prescribed procedure for claiming TDS credit by such other person. (vii) Hence, in view of the Section 199(1) r.w. rule 37BA, it is held that the AO was justified in restricting the TDS credit corresponding to rental income owned by the appellant. 2.2 During the course of hearing, the ld. AR of the assessee mainly prayed that the ld. CIT(A) has erred in not giving the credit of TDS amount of Rs. 2,16,481/- u/s 199 of the Act which was deducted in the name of assessee being co-owner of the property. 2.3 The ld. DR relied on the orders of the lower authorities. 2.4 I have heard the rival contentions and perused the materials available on record. It is noted that the....
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....ng to the AO, the assessee is eligible for TDS in proportion to his share of rental income declared only which comes to Rs. 12,533/- (Rs. 2,38,133/19). Thus the excess TDS claimed and allowed earlier amounting to Rs. 2,25,600/- (Rs. 2,38133 minus Rs. 12,533) plus interest granted u/s 244A amounting to Rs. 5,063/- totaling to Rs. 2,30,663/- is withdrawn. In short, the AO thus disallowed TDS claim of the assessee amounting to Rs. 2,16,481/- which has been confirmed by the ld. CIT(A) in first appeal. In appeal before the Bench, the ld. AR of the assessee filed the affidavit, income tax returns alongwith computation of income and confirmation of accounts of all 18 co-owners of the property. It is also noticed from the affidavit/ declaration of 18 co-owners wherein all 18 co-owners have mentioned that they have received the rent without deduction of any tax. The relevant para of the affidavit / declaration by the 18 co-owners is as under:- ''We all joint owner accept Mr Dayaram Poonia hereby declare on oath that any TDS deducted by tenant shall be the property of Mr.Dayaram Poonia and whatever the rent was received on our behalf have been distributed between us as agreed thereu....