TaxTMI 
TaxTMI 
2022 (6) TMI 236
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....tion under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). By this intimation the CPC Centre has gives TDS credit of Rs. 62,721/- only and raised a tax demand of Rs. 2,46,857/-. The grievances of the assessee is that the entire TDS amount of Rs. 2,96,734/- was not duly given credit by the CPC Centre. Aggrieved by this intimation order the assessee filed an rectification application under Section 154 on 03.07.2015 to the jurisdictional AO namely ITO, Ward-4(2)(1) and also e-filed rectification to the CPC Centre Bangalore. The assessee also claimed that the CPC Centre has wrongly charged interest under Section 234A as the assessee has filed the Return of Income well in time within the extended due date period of 30.11.2014. The assessee also claimed the CPC Centre has wrongly charged interest under Section 234B and 234C of the Act. The Deputy Commissioner of Income Tax has passed an order dated 28.09.2016 confirming the same addition made in the intimation and reject the rectification petition filed by the assessee. 3. Aggrieved against this rectification order, the assessee filed an appeal before the Ld. CIT(A)-4, Ahmedabad. The short issue in this ....
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..... 3594 2013-14 3594 20. AHMN03802F NKP Pharma Pvt.Ltd. 5281 2013-14 5281 21. AHM000736B Office of the D.D.G.V.T.M.Gujarat 529 2013-14 529 22. AHMS900508E Sagar Powertex Pvt.Ltd. 6000 2013-14 6000 23. AHMS02391E Shree Rama Multi Tech Ltd. 2247 2013-14 2247 24. AHMS15729A Sumiran Foods Pvt. Ltd. 6350 2013-14 6350 25. AHMU00061F Uniexcel Agencies Pvt.Ltd. 5260 2013-14 5260 26. AHMX00027G Xduce Infotech Pvt.Ltd. 2825 2013-14 2825 27. MUMK00345C Khimji Vishram &Sons (Comm.Dept.) 3231 2013-14 3231 28. AHMS00665A Sayaji Industries Ltd. 8500 2013-14 8500 29. BRDP01247B PBM Polytex Ltd. 25281 2011-12 25281 30. BRDP01247B PMB Polytex Ltd. 25281 2012-13 25281 31. BRDP01247B PBM Polytex Ltd. 12360 2013-14 12360 Total:- 296734 234013 62721 4. The Ld. CIT(A) partly allowed the assessee's appeal is as fo....
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....; X(2) X(2) X(2) Therefore, TDS credit being claimed in year 1 but commensurate income may or may not be shown even in next year, it may be partly in year 2 or 3. In other words, the TDS credit say of Year - 0 continue to figure for next 3-4 years depending on the assessee as to when it receives the concerned income. Similar will be the case for Year -1, wherein part TDS credit of Year -1 and Year-0 are claimed. In Year-2, part TDS credit of Year-2, Year- 1 and Year-0 claimed. The issue has compounding complexity and it will be more complex if we go back to Year(-1) and Year (-2), Year-0 being base year say 2014-15. For instance, the credit of TDS deducted in A.Y. 2012-13 is being claimed in A Y. 2014-15. Therefore AO is also not accepting the reality of situation. AO is not giving credit for TDS of A.Y. (year I) as income is not shown fully in year (Year-1) so part credit is given, say in A.Y. 2015-16, On the other hand, whatever income shown in return of income being accepted though TDS credit of Year- 0 (X-0) may have been claimed but not granted, i.e. A Y.2013-14 because of entries in Form 26AS. The appellant has relied on certain case laws and f full....
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....e granted in A.Y. 2015-16 without leaving out any commensurate income for assessment in A.Y. 2016-17. The Form No.26AS would not be causing any problem to either party provided the deductor has uploaded the correct details in TDS returns. The appellant has to interface with AO only in case certain mistakes crept in because of wrong punching while uploading TDS details by the deductors. The All Gujarat Federation of Tax Consultants vide communication dated 28/04/2017 has urged CBDT to direct the AOs to grant credit for the TDS if the same is reflected in 26AS of tax payer. While concurring with this proposal dated 28.04.2017, it is my opinion that the related bills should also be part of total turnover for the related assessment year. The TDS and the income has to go hand in hand. Therefore, while adjudicating ground no. 1 & 2 of this appeal, I direct the AO to give TDS credit in A.Y.2014-15 for the deductions made in F.Y. 2013-14 by ensuring that the total commensurate amount is brought to tax in A.Y. 2014- 15 itself. It is my conscious decision not to accede to the demand of appellant for allowing TDS credit pertaining to A Y.2012-13 & A.Y.2013-14. The ground no. 1 & 2 are accordi....
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....8. We have given our careful consideration and perused the material available on record. This issue of the TDS credit is no more res integra, since this issue is been settled by Jurisdictional High Court in the case of Naresh Bhavani Shah (HUF) vs. CIT, reported in (2017) 396 ITR 589 (Guj.). For better understanding, the judgment 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 ....
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....epositor or of the owner of the property or unit holder or the share holder as the case may be. Sub-section (3) of Section 199 however permits a deviation authorizing 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 pro....