2022 (9) TMI 1370

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....ull credit of TDS of Rs.32,28,248/- as claimed by the appellant in its return of income. 2. The learned C.I.T. (Appeals) while not granting the full credit of TDS as claimed by the appellant in its return of income has overlooked the fact that the appellant follows "Cash Method" of accounting as per statutorily permitted in terms of the provisions of Section 145 of the Income-tax Act, 1961 regularly and has claimed credit of TDS made by the deductor against Professional receipts offered to tax during the previous year irrespective of the financial year in which such TDS was made by the deducotr, in compliance with the provisions of Section 199 read with Rule 37BA of the Income-tax Rules, 1962 2. The assessee, in the present case....

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....s not been done by the assessing officer having natural jurisdiction over the case. It is also noted that there is very limited sphere of power with the department u/s, 143(1) to undertake adjustments in the returned income as per provisions of IT Act, 1961 and entries in Form 26AS are important guiding light for any such action. This is a reality which must be accepted by the appellant. Therefore, I decide to direct the AO to grant credit of any TDS deducted in A.Y.2016-17 provided the commensurate receipt is also brought to tax in A.Y. 2016-17. Similarly, the credit for TDS deducted in A.Y. 2017-18 should be granted in A.Y. 2017-18 without leaving out any commensurate income for assessment in A.Y. 2017-18. The Form No.26AS would ....