TaxTMI 
TaxTMI 
2017 (11) TMI 1561
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....A)) erred in confirming the rectification order passed by the Assessing officer {hereinafter referred to as AO) under section 154 of the Act wherein TDS credit of Rs. 44,82,512 granted earlier as per the assessment order was withdrawn vide rectification order under section 154 of the Act. ii) The learned CIT(A) failed to appreciate that the income in question was first offered in the hands of the appellant company (Reliance Hypermart Limited) and then pursuant to the Bombay High Court order, the income was offered by the resulting company, Reliance Fresh Limited. Hi) The appellant prays that the withdrawal of TDS credit as confirmed by the learned CIT(A), having regards to the facts already on record is totally un....
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....company, therefore, AO was not justified in declining claim of TDS in the hands of the assessee company, when it was actually deducted in the hands of the assessee company by noting its PAN number. Reliance was placed on the decision of the Hon'ble Delhi High Court in the case of Relcom dated 16/01/2015 wherein under similar facts, the Hon'ble High Court held that assessee was eligible for credit of TDS even when corresponding income was not offered for tax. 5. On the other hand, learned DR relied on the order of the lower authorities. 6. I have considered rival contentions and carefully gone through the orders of the authorities below and found from record that originally the assessee company filed its original return of income on 30....
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....mpany keeps on carrying-on its normal business activities relating to all its undertakings (ie: both retained and demerged undertakings) and all the transactions are receded in the books of the Company. In the present case, all transactions till 30.11.2011 were first recorded in the Company's books. On filing of the Scheme with RoC, the Scheme became effective and therefore, the Company identified the income and expenditure pertaining to the demerged undertaking for the period April 2010 to March 2011 and passed a journal entry in its books on 30.11.2011 for giving effect to the Scheme. Consequently, the Company filed its original return of income on, due 'date for A.Y. 2011-12 on 30.09.2011, claiming IDS of Rs. 44,18,554/-and after....
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....imed by Reliance Hyper Realty Ltd. and not being claimed by Reliance Fresh Ltd. 10. With regard to eligibility of assessee to claim credit of TDS without offering corresponding income has been deleted by Hon'ble Delhi High Court in the case of Relcom (supra) and observed as under:- 6. Having heard the submissions made on behalf of the revenue and after a perusal the orders passed by the CIT(A) and the ITAT, we are of opinion that the said orders do not call for any interference and were warranted and justified in the facts and circumstances of the case. Before we proceed to elaborate on our reasons for the same, a perusal of Section 199 of the Act is necessary. Section 199 reads as follows: . . "199. Credit for tax dedu....
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....y the assessee's claim on the mere technical ground that the income in respect of the said TDS claim was not that of the assessee, given that M/s Relcom (the assessee) and M/s REPL are sister concerns and M/s REPL has not raised any objection with regard to the assessee's TDS claim of Rs.l,20,73,097/-. 8. This Court's reasoning is supported by a ruling of the Division Bench of the Andhra Pradesh High Court in CIT v. Bhooratnam, (2013) 357 1TR 196 (AP), where the Court noted as follows: "In our view, the CIT (Appeals) and the Tribunal have rightly held that the assessee is entitled to the credit of the TDS mentioned in the TDS certificates issued by the contractor, *whether the said certificate is issued in the ....
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....sp; XXX The Revenue cannot be allowed to retain tax deducted at source without credit being available to anybody. If credit of tax is not allowed to the assessee, and the joint venture has not filed a return of income, then credit of the TDS cannot be taken by anybody. This is not the spirit and intention of law. "(emphasis supplied) 9. At this stage, it is also relevant to note the pro....