2021 (9) TMI 360

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....961 (in short the Act). 2. Brief facts of the case are, the assessee filed its return of income for the assessment year (AY) 2016-17 declaring total income of Rs. 5,00,000/- on 20.03.2018. The return was processed u/s 143(3) of the Income Tax Act, 1961 (in short the Act). The case was selected for scrutiny under CASS. Accordingly, the notices u/s 143(2) and 142(1) were issued and served on the assessee. The assessee is appointed as a New Town Development Authority for developing the Navi Mumbai Area u/s 113(3A) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP) and a Special Planning Authority for other notified area u/s 40(1)(b) r.w.s. 113(3A) of the MRTP Act for carrying out its activities as New Town Development Authority.....

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....rson from whose income, the deduction was made or the owner of the property or of the depositor or of the owner of the property or the unit-holder or of shareholder as the case may be. As per Rule 37BA(3)(i) of the Income Tax Act, 1962, credit for tax deducted at source and paid to the Central Government shall be given over the assessment year for which such income is assessable. Accordingly, the Assessing Officer rejected the claim for credit of TDS claimed by the assessee. 5. Aggrieved with the above order, the assessee preferred an appeal before the Ld. CIT(A). 6. The Ld. CIT(A) after considering the facts on record allowed the appeal of the assessee with the following observations: "2.5.4. The AO denied the credit of the ....

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.... the claim of credit of tax of Rs. 15,38,15,311/-." 8. Considered the rival submissions and material on record. We noticed that the assessee is wholly owned company of Government of Maharashtra and it is acting as an agent of the Government for carrying out all activities and statutory duties for the development of new town. It is fact on record that the taxes were deducted on various payment made to the assessee to the extent of Rs. 1,53,81,15,311/-. The assessee claimed the above said TDS credit in the return of income and even AO have observed that the above said amount is not included in the total income of the assessee. The assessee had received the payments as an agent for representing as Development Authority or Special Planning A....