TaxTMI 
TaxTMI 
2022 (12) TMI 74
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..... 154 vide order dated 10/05/2019 passed for the assessment year 2016-17. 2. The assessee has raised the following grounds of appeal:- "1. The C.I.T.(A) erred in not allowing the credit of TDS of Rs.2,50,100/- brought forward from the earlier year and claimed by the Appellant during the current year in respect of the professional income received by the Appellant during the current year and in dismissing the appeal. 2. The C.I.T.(A) failed to appreciate that if the payer follows mercantile system of accounting and if the recipient like the Appellant follows cash system of accounting, this type of mismatch is bound to happen and the Income tax Department is required to adjust the mismatch in the interest of justice otherw....
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...., in accordance with the provisions of Rule 37BA read with section 199(3) of the Act. Hence the aforesaid tax credit mismatch is primarily because of the fact that Income Tax Department-CPC gives credit of TDS which stands reflected in the online computer records i.e. Form 26AS of the previous year when tax has been deducted. Since the method of accounting differs between the deductor entities and the assessee, the same results into mismatch between the TDS as is reflected in Form 26AS which is a summary of the TDS deducted during the financial year by various deductors and one that is claimed by the assessee as per return of income. As per the system employed by the assessee, though the expenditure has been booked by the deductors in asses....
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....d to Rule 37BA r.w.s. 199(3) of the IT. Act,1961. The statement as per rule 37BA in the system is not complete as the Unique TDS Certificate Number is missing as commented elsewhere in this order Consequently, the provision u/s. 199(3) of the IT. Act is not helping the appellant in this case. .................................................................................................................................... .................................................................................................................................... .................................................................................................................................... Therefore, while adju....
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....ducted at source shall be allowed across those years in same proportion in which income is assessable/offered to tax. The ITAT Ahmedabad on identical set of facts in the case of Chirag M Shah in ITA number 825/Ahd/2019 has also held that the assessee is entitled to get credit of TDS in the year in which he has offered to tax the professional fees income on receipt basis i.e. by following cash basis of accounting, even though the client/deductor had deducted tax in earlier years by following an "accrual" basis of accounting. Notably, the ITAT Chennai Bench in the case of Supreme Renewable Energy Ltd. v. ITO [2010] 124 ITD 394 held that "when a particular income is received by assessee after deduction of tax at source and said TDS has been du....