TaxTMI 
TaxTMI 
2022 (5) TMI 278
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.... the AY 2018-19 in his individual capacity. The major income derived from "income from other sources"; namely, bank deposits from Bank of Baroda and NSC. The assessee's father had deposits with Bank of Baroda on which interest income of Rs.13,04,682/- was accrued during the AY 2018-19 with TDS of Rs.1,34,220/-. However, the TDS certificate carrying the PAN of assessee's late father Dr.Navinbhai Parikh. However, the assessee offered other incomes and interest income of Rs.13,04,682/- for taxation in his return of income for the AY 2018-19 and paid balance tax thereon. 2.1. The return of income was processed by the Centralized Processing Center (CPC), Bengaluru by order dated 12/04/2019 and intimation u/s.143(1) of the Act was passed, whereby denying TDS amount from Bank of Baroda of Rs.1,34,220/- and also demanded tax of Rs.1,57,610/-. 3. Aggrieved against this intimation, the assessee filed an appeal before the Ld.CIT(A)-13, Ahmedabad and the Ld.CIT(A) dismissed the assessee's appeal by observing as under: "4.2. Though the appellant has furnished the computation of total income he has not furnished the copy of return of income filed and thus it is not verifiable as to how the b....
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....ather has been declared by the appellant in his return of income. In this regard the only case law, Naresh Bhavani Shah (2017) 396 ITR 0589 (Guj.), quoted by the appellate in his submission, does not protect and help the appellant as the facts in the issues are totally different and distinguishable. However in view of the circumstances narrated Para 4.2 and 4.3 above and the fact that the TDS can be given credit only against the income of the person from whom the TDS was deducted. The income of the deceased father does not become the income of the appellant and as it is an inheritance and a capital receipt in the hands of the appellant. The relief sought by the appellant that the TDS in the case of deceased father should be allowed as prepaid tax credit in the hands of the appellant cannot be allowed." 4. Aggrieved by the order of the Ld.CIT(A), assessee is now in appeal before us with the following grounds of appeal: 1. The order passed by the Hon'ble Commissioner of Income Tax (Appeals) [CIT(A)] is erroneous and contrary to the provisions of law and facts and therefore requires to be suitably modified. It is submitted that it be so done now. 2. The Hon'ble CIT(A) has erred i....
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.... Bank of Baroda about the change in PAN for his late father. Thus, the assessee cannot be denied the benefit of TDS made by the Bank of Baroda and pleaded to allow the TDS credit and allow the appeal in favour of the assessee. 6. Per contra, the Ld.DR appearing for the Revenue supported the orders of the lower authorities and requested to confirm the same. 7. We have given our thoughtful consideration and perused the material available on record. In the instant case, we find that when the Fixed Deposit of income of Rs.13,42,190/- which was the income of the deceased father of the assessee, but offered by the assessee in his individual's hands being the sole legal heir of deceased father, the Revenue cannot deny the benefit of TDS made in the hands of the assessee's father. 7.1. It is worthy to note here that the First and Second Proviso to section 143(1) of the IT Act, 1961. "Assessment 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any ....
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....vs. CIT reported in (2017) 396 ITR 0589 (Guj.) = (2017) 84 taxmann.com 53 (Gujarat) and the ratio of the said judgement is totally different and is distinguishable. For better understanding, the judgement of the Hon'ble Jurisdictional High Court in the case of Naresh Bhavani Shah (HUF) [supra] is reproduced hereunder: "6. As is well known, Chapter XVIIB of the Act pertains to tax deduction at source. This part contains detailed provisions for collection of tax at source and depositing with the government revenue and other related provisions. We may refer to the relevant provisions contained thereunder. Section 199 pertains to credit for tax deducted. Relevant portion thereof reads as under: "(1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be. (3) The Board may, for the purposes of giving credit in respect of tax deducted or tax paid in terms of the provisions of thi....
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....the power to make rules in respect of giving credit of tax deducted at source or the year during which the credit of such tax deducted at source should be granted. In exercise of such powers, Rule 37BA of the Income Tax Rules 1962 has been framed, relevant portion of which reads as under: "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 authorized by such authority. (2) (i) If the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for tax deducted at source shall be given to the other person in cases where--- (a) the income of the deductee is included in the total income of another person under the provisions of section 60, section 61, section 64, section 93 or section 94; (b) the income of a deductee being an association of persons or a trust is assessable in the hands of members of ....