TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 109
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....eived by the appellant in September, 2019 and thereafter it was taken up at appropriate managerial for possible examination and consequences. However, due to Covid 19 Pandemic the decision got delayed. He relied judgment of Hon'ble Supreme Court of India in Collector Land Acquisition vs. Mst. Katiji 1997 taxman.com 1072 (SC) to contend that for substantial justice technical considerations cannot be sustained and party should be given all reasonable opportunities to contest on merits. 2.1 On the other hand Ld. Sr. DR submitted that the grounds submitted are not sufficient and merely because of internal delays to take a decision whether to file appeal or not, the delay in filing appeal by huge margin of 337 days cannot be allowed. 2.3 In regard to delay in filing of the appeal the bench is of considered opinion that as a matter of admitted fact the appellant is not showing any revenue from financial year 2014-15 onwards. Certainly when the parent company is considering closer of business and all activities there would not be many resources with the appellant to take a final call in regard to the matters as important as tax litigation. The impugned order of Ld. CIT(A) is dated 31.07....
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....is a difference of Rs. 34,030/-, which is not shown as income/revenue in any of the years and hence the same is sustained as addition. 7.3 Further, the appellant has claimed credit of TDS forthe year under consideration, though no corresponding income has been disclosed. Therefore, in view of the provisions of section 199 of the Act and looking to the fact that no income has been offered for tax during the year under consideration, the appellant is not entitled for the credits of TDS amounting to Rs. 18,06,910/-. Therefore, the credit for the said TDS is not allowed to the appellant. With these remarks, the appeal is partly allowed on this ground." 5. Now before the tribunal the assessee has filed appeal on the following grounds :- "1. That on the facts and circumstances of the case and in law, the impugned order is based upon conjectures and incorrect application of law, and therefore, is bad in law. 2. That on the facts and circumstances of the case and in law, the Hon'ble CIT(A)/ the Ld. AO have grossly erred in not allowing the credit of TDS amounting to Rs. 18,06,910/- inter alia because- 2.1 The documentary evidence in support TDS claim is as per Form 26AS, which....
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....erson in respect of whose income such payment of tax has been made. (3) 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 subsection (2) and also the assessment year for which such credit may be given. "Rule 37BA. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or credit has been given (hereinafter referred to as deductee) on the basis of information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority. (2) [(i) Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee : ....
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....ffered revenue to tax in the earlier years and based upon same consider the deletion but at the same time disallowed the credit for the TDS for the reason that no income has been offered for tax during the year under consideration. 8.1 The Bench is of considered view that the provisions of Section 199 of the Act and Rule 37 BA of the IT Rules do not in any way require that it is only on offering income assessable to tax in that year, the credit for TDS can be allowed. Meaning thereby that, even if the income offered is NIL, then also credit of TDS can be given as the claim of credit is not in the form of an adjustment or a deduction from taxable income but TDS being one of the modes of payment of tax, give rise to a claim of refund which can very well be raised in a case where there is no assessable income in the corresponding year. 8.2 It is coming up from record that appellant offered a total revenue of Rs. 4,47,11,66 in AY 2012-13 and 2013-14, which stand accepted by the revenue. In these two FYs Rs. 2,66,76,599 were reflected in the Form 26AS and in present FY no income was reflected as per P&L Account but Rs. 1,80,69,097 was mentioned in the form 26AS. Thus, there was discre....