TaxTMI 
TaxTMI 
2022 (12) TMI 71
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....n short "Ld. Commissioner") u/s 250 of the Income Tax Act, 1961 (in short "the Act"), pertaining to the assessment year 2018-19. 2. Brief facts relevant for the adjudication of the instant appeal are that the Assessee being a foreign company, incorporated in Singapore had filed its Return of Income for the Assessment Year 2018- 2019 on 23rd November, 2018 by declaring a total income of Rs. 34,64,76,9600/-under the regular provisions of the Income Tax Act, 1961 and claimed TDS credit of Rs.7,31,61,839/-. 2.1 Somehow, in the intimation under section 143(1) dated 23rd February, 2020, TDS credit has been restricted to Rs.1,22,76,233/-. Thus, short TDS credit was granted to the extent of Rs.6,08,85,606/- and a demand payable of Rs.7,08,40,....
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....ine rectification by correcting the details of TDS and to check tax credit with the information available in Form 26AS. The Ld. Commissioner further observed that apparently the Assessee has not made efforts to resolve the reasons of TDS mismatch and instead chosen to file appeal. The Ld. Commissioner also advised the Assessee to approach the CPC as suggested in the intimation u/s 143(1) by filing rectification application online with the CPC after taking necessary steps. Though prima facie, we do not find any infirmity in the impugned order, however in order to resolve the controversy, we are adverting to the factual matrix and other aspects of the case. In its compilation the Assessee has filed copy of rectification application dated 1....
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....ns of section 44BB) and interest income of Rs.27,14,95,936/-, aggregating to Rs.34,64,76,960/-. c) The assessee company filed its Return of Income for the Assessment Year 2018- 2019 on 23rd November, 2018 declaring a Total income of Rs. 34,64,76,9600/-under the regular provisions of the Income Tax Act, 1961 and claimed TDS credit of Rs.7,31,61,839/-. Copy of the acknowledgment evidencing filing of Return of Income for the assessment year 2018-2019 is enclosed marked Annexure 2. d) However, in the intimation under section 143(1) dated 23rd February, 2020, TDS credit has been restricted to Rs.1,22,76,233/-. Thus, short TDS credit was granted to the extent of Rs.6,08,85,606/- and a demand payable of Rs.7,08,40,350/- has been ....
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....Rules. Rule 37BA(3)(i) clearly provides that credit for TDS shall be granted for the assessment year in which the corresponding income is assessable. In other words, it is submitted, that the credit for TDS cannot be divorced or separated from the year in which the corresponding income is assessable. i) The assessee company submits that the credit for TDS and correlating assessable income is inextricably interlinked and accordingly the credit for TDS should be given when the corresponding income is assessed to tax. The assessee company submits that the Assessing Officer has vide intimation under section 143(1) accepted that the interest income is taxable in the assessment Year 2018-2019 but has not granted corresponding TDS credit ....
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....ions 234B and 234C being consequential in nature, would stand deleted. In view of what is stated above, we request your Honour to please pass a suitable order under section 154 rectifying the above mistakes apparent from the records and oblige. On doing so, the demand raised vide intimation under section 143(1) of Rs.7,08,40,350/- would stand vacated. In the meanwhile, we request your Honour to please refrain from taking any coercive steps for recovery of erroneous outstanding demand and oblige" Thanking You Yours faithfully For kalyaniwalla & Mistry LLP Chartered Accountants Akram Abdulla Khan Partner Encl: As above 4.1 The Assessee's contention is that the aforesai....