2017 (5) TMI 1667

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....and income from other sources apart from business. During the course of assessment proceedings, the assessee was asked to reconcile the gross receipts shown as per the profit and loss account with that of the gross receipts shown as per TDS certificate on which TDS credit was claimed by the assessee. On perusal of the details filed by the assessee, the Assessing Officer noticed that the assessee had claimed TDS credit on mobilisation advances received during FY 2008-09 relevant to assessment year 2009-10 but such advances were not credited to the profit and loss account by way of income. The Assessing Officer observed that the unadjusted mobilization advances during the year stood at Rs. 3,99,06,816/- on which TDS of Rs. 8,77,950/- was clai....

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....t the Provision of Sec 199 of Income Tax Act is an enabling provision for TDS Credit and is not a Computation Provision Section 199 permits assessee to claim TDS in the year of deduction where the consistent method of accounting has been followed and accepted by Assessing Officer in earlier years. During the year the amount of work executed Rs. 94,73,40,679/- far exceeds the amount of Mobilization Advance Received Rs. 8,90,18,261/- received during the year on which TDS is deducted of Rs. 20,17,104/-. So much so the TDS is further the deducted by the Clients on submission of bills for work done during the year. The disallowance is arbitrary. 4. That the assessment as framed is against law and facts of the case. It is prayed that the....

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....ted tax at source in respect of such mobilization advance also..... 4. ........mobilization advance was granted to the assessee in order to enable it to deploy machinery and man power in sufficient quantity at the work site, awarded to the assessee. It was further contended that since the mobilization advance is not in the nature of income, no TDS can be deducted but it was however, deducted by M/s. Gammon India Limited. Therefore, the credit of the same is to be allowed to the assessee. The contentions of the assesses were examined by the CIT(A) and following the order of the Tribunal, Mumbai Bench in the case of Toyo Engineering India Limited, 5 SOT 616 directed the A.O. to allow the credit of TDS in the year under consideration.....