TaxTMI 
TaxTMI 
2017 (11) TMI 514
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....at the Ld. Assessing Officer , though by applying Rule 37BA of the Income Tax Rules' 1962 ("Rule") read with Section 199 of the Act give credit when he restricted the credit of TDS to Rs. 79,560/- as against credit to be allowed of Rs. 7,95,600/- and thus he ought to have followed the order of Hon'ble Tribunal in the case of the appellant for Assessment Year 2011-12 and held specifically held that action of Ld. Assessing Officer was highly arbitrary, unjustified and not in accordance with law and directed thus for credit of TDS of Rs. 7,95,600/- as claimed. 2. That the Ld.CIT(A) has also grossly erred both in law and on facts in not holding that the ld. Assessing Officer had erred in restricting credit of TDS of Rs. 43,31,947/- in TNS 150 despite the fact the assessee had furnished TDs certificates of Rs. 97,36,440/- and the said sum was also reflected in Form 26As (except to the extent of Rs. 15,000/- which is not disputed and was thus entitled to credit of TDS of Rs. 97,36,440/- u/s 199 of the Act. 3. That the Ld.CIT(A) has grossly erred both in law and on facts in not directing the deletion of interest of Rs. 18,21,816/- u/s 234B of the Act and of Rs. 2,32,844/- u/s 234C o....
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....is assessable. Meaning thereby TDS credit shall be allowed only when its corresponding income has been taken for taxation. Thus, the Assessing Officer held that the assessee is offering only such part of the professional income which is equivalent o the TDS claimed, the practice is totally in contravention of Rule 37BA and provisions of Income Tax Act and since, the assessee had shown professional income of Rs. 7,95,600/- he was eligible for TDS credit of Rs. 79,560/- (7,95,600/- X10%) only. Thus, balance TDS credit claim of Rs. 716040/- (7,95,600-79,560/-) was disallowed in Assessment Year 2012-13. The Assessing Officer further held that the balance will be allowable in the year in which the corresponding professional income would be assessable. After scrutinizing the relevant documents on test check basis and discussing the case with AR of the assessee, income of the assessee was assessed at Rs. 9,88,74,420/- u/s 143 (3) of the IT Act, 1961 by the Assessing Officer and Interest was charged u/s 234B and 234C accordingly. 4. Being aggrieved by the order of the Assessing Officer. The assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. The ....
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....nt deposits TDS of Rs. 10/- to the credit of the account of the assessee and issued a certificate of TDS to the assessee and thus, it was submitted that an amount of Rs. 10/- was since deducted in respect of the assessee, the said sum is income of the assessee which is assessable to tax. It was submitted that once an income is assessable to tax, the assessee is eligible for credit despite the fact that remaining amount would be taxable in the succeeding years. We are in an agreement with the above submission that the TDS deducted by the deductor on behalf of the assessee and offered as income is to be allowed as credit in the year of deduction of tax deducted at source. Rule 37BA of the Act provides that credit for TDS should be allowed in the year in which income ITA No.6185/Del./2013 is assessable. Further clause (ii) of Rule 37BA(3) of the Act provides that where tax has been deducted at source paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. In our considered opinion, this rule is only applicable where entire c....
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....and in amended provisions nothing has been stated about the year in which the credit of TDS is to be claimed. As per amended provisions of section 199, in sub-section 1, it has been stated that any deductions 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. Therefore, as per the amended provisions, once the TDS was deducted, a credit of the same to be given to the assessees, irrespective of the year to which it relates. The preamended and the amended provisions of section 199 are extracted hereunder: "Section 199: Credit for tax deducted - (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 depositor or owner of property or of unit holder or of the shareholder, as the case may be, and credit shall be given to him for the amount so deducted on the production of the certificate furnished under section 203 in the assessment made und....