AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 21
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....come is assessable. 2. Briefly stated, the assessee company had e-filed its return of income for A.Y 2015-16 on 29/11/2015, declaring its total income at Rs. 56,94,20,730/-. On the basis of its return of income the assessee had claimed a refund of Rs. 13,88,56,070/-. The return of income filed by the assessee was processed and an intimation u/s. 143(1), dated 31-01-2017 was issued to the assessee. On a perusal of the aforesaid intimation, it was gathered by the assessee that as against the TDS credit of Rs. 22,74,02,171/- claimed in the return of income, the A.O had allowed a credit of Rs. 22,28,60,176/- only. In sum and substance, the A.O while processing the return of income of the assessee had allowed a short credit for TDS of Rs. 45,41,995/-. Resultantly, as against the refund of Rs. 13,88,56,070/- claimed by the assessse in its return of income (excluding interest u/s. 244A), the A.O had issued a refund of Rs. 13,43,14,070/- (principal amount) only. 3. Aggrieved, the assessee carried the matter in appeal before the ld. CIT(A). It was submitted by the assessee that the tax credit of Rs. 45,41,995/- (principal amount) was not granted by the A.O in the intimation that was issu....
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....5 22,23,30,150 44,46,603 Meal & Accommodation For Mar-15 12,96,000 25,920 Reimbursement of expenses for BG Induction programme 16,83,4000 33,668 Rignet Mobilization Commission for December 2014 3,10,350 6,207 Total 22,70,99,750 45,41,995 5. It is the claim of the assessee that as it follows the 'mercantile system' of accounting, therefore, it had accounted for the aforesaid invoices as part of its sales/receipts, as soon as those were raised on the client. On the basis of its aforesaid claim, it was submitted by the ld. A.R that the assessee was duly entitled for the TDS credit of Rs. 45,41,995/- as per the specific provisions of section 199 of the Act. On the contrary, the lower authorities had declined the aforesaid claim of credit to the assessee, for the reason, that as per the post amended provisions of section 199 the credit for tax deducted at source (TDS) and paid to the Central Government was to be given to the assessee in the year of deduction of tax at source. 6. We have given a thoughtful consideration to the issue before us and are unable to persuade ourselves to subscribe to the view taken by the lower authorities. On a perusal of sec....
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....rson in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and 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. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of - (i) the information relating to deduction of tax furnished 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." Rule 37BA(3)(i) clearly provides that credit for tax deducted at source and paid to the Central Government, shall be given for the ....
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..... totalling to Rs. 84,10,000/-, that Ashoka Leyland deducted tax at source amounting to Rs. 8,41,050/-. Thus, it is established that the assessee recorded invoice of Rs. 84.10 lakh in its accounts for the year under consideration. It is also equally true that Ashoka Leyland deducted tax at source on such amount to the tune of Rs. 8,41,050/- but deposited it with the exchequer in the month of April, 2011. The dispute has arisen because of this only. Whereas the claim of the assessee is that the benefit of TDS should be allowed in the year in which the assessee has recorded the corresponding income and the Revenue is contending that such benefit can be given only in the year of deposit of TDS. 5. Section 199(3) of the Act, which is relevant for our purpose, reads as under: "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". 6. The relevant rule is 37BA which is repr....
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....e with the risk management strategy formulated by the Board from time to time. 7. The AO has relied on sub-rule (1) of section 37BA for denying the benefit of TDS during the year under consideration. This part of the Rule provides that the credit for TDS shall be given to the person to whom payment has been made or credit has been given on the basis of information relating to TDS furnished by the deductor. What is material for sub-rule (1) is the beneficiary of credit for the TDS, being the person to whom payment has been made, which in the instant case is the assessee. The ld. CIT(A) has, in addition, relied on sub-rule (4) of Rule 37BA, which again provides that the credit for TDS shall be granted on the basis of information relating to deduction of tax at source furnished by the deductor. How, this rule prejudices the claim of the assessee is anybody's guess. Obviously, the information about the TDS by Ashok Leyland is not denied. Both the sub-rules simply provide for granting of the benefit of TDS. The point of time at which the benefit of TDS is to be given, is governed by sub-rule (3) of Rule 37BA, which unequivocally provides through clause (i) that the 'credit for tax d....