TaxTMI 
TaxTMI 
2023 (3) TMI 548
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.... the return of income in respect to rent income from property at Navprabhat Chambers thereby not granting credit for TDS of Rs. 14,836. 2. The learned CIT(A) erred in confirming the action of the Assessing officer (CPC) of not granting credit of Rs. 64,458 being tax deducted at source u/s 206AA in respect to dividend income from Tata Steel Ltd. 3. The learned CIT(A) erred in not appreciating that the appellant was entitled to credit of TDS as per the provisions of section 199 of the Income Tax Act, 1961. 4. The learned CIT(A) erred in dismissing the appeal without appreciating that the tax on the rent and dividend had already been deducted at source and that the appellant cannot be called upon to pay the tax on such income in view of the provisions of Section 205 of the Act. Relief Sought: Your appellant prays that: 1. The learned Assessing officer be directed to grant full TDS credit of Rs. 3,93,891 as claimed by the appellant in the return. 2. Your appellant craves leave to add, to amend or delete the above ground on or before the final date of hearing. The learned AO be directed not to recover the demand in respect of TDS deducted. 3. Briefly stated, facts of th....
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....sessment year 2023-24. The contention of the assessee is that though tax in respect of this part of rental income has been deducted and deposited in subsequent assessment year, the assessee following accrual system has declared the corresponding income in the year under consideration and therefore, credit of TDS to be allowed to the assessee against income declared in the year under consideration. 6.1.1 Similarly, details of income from dividend has been provided before the Ld. CIT(A) as under: Sr. No. Folio No. Gross dividend income TDS @ 20% 1. S1S0061657 Rs.10,290 Rs.2,058 2. S1S0036608 Rs.3,04,820 60,964 3. S1S0035964 Rs.7,180 1,436 Total 3,22,290 Rs.64,458 6.2 In respect of dividend income due to non-providing of PAN to the deductor, the deductor has deducted tax @ 20% u/s 206AS amounting to Rs.64,458/-. The contention of the assessee is that due to non-providing of the PAN in Form No. 26AS, the Assessing Officer has not allowed credit of TDS, though same was deducted by the deductor M/s Tata Steel Ltd. as per the table above. 6.3 Before us, the Ld. Counsel of the assessee has filed a letter from the deductor M/s Tata Steel Ltd. and provided detai....
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.... 3,22,290/- from 32,229 shares of Tata Steel Ltd as well the appellant has not submitted any proof of production of form 16A before the AO evidencing deduction of TDS." 6.5 The Ld. CIT(A) has also referred to the decision of the Hon'ble Delhi High Court on the issue of allowing tax credit. The relevant part of the order of the Ld. CIT(A) is also reproduced as under: "5.6 It is aloes relevant to mention here another aspect of credit of TDS when deduction has actually been made but credit is not available to the deductee. Pursuant to the landmark judgement of Hon'ble Delhi High Court, the Central Board of Direct Taxes (CBDT) issued Instruction No. 5 dated July 8,2013 wherein vides paragraph 3 it has directed the Assessing Officers that whenever an assessee approaches AOs with requisite details and particulars in the form of TDS certificate as evidence against any mismatched TDS amount, the said officer shall, after due verification, allow the credit of the same to the assessee. The relevant paragraph is reproduced for ready reference - "3. In view of the order of the Hon'ble Delhi High Court (reference: paragraph 50 of the order); it has been decided by the Board that wh....
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....or the year for which the corresponding income is assessable. It wold be evident from plain reading of section 199 of the Act and Rule 37BA of Income Tax rules, 1962 that credit is to be given to the assessee for the amount so deducted in the assessment made under this Act for the assessment year for which Such income is assessable. So important conditions for getting benefit of TDS as per section 199 of the Act are (a) the assessee should produce the certificate for the amount of tax deducted at source; (b) show that income subjected to TDS is disclosed in the return of the assessment year as 'assessable'. Thus, both the above-mentioned conditions are to be satisfied. It is, therefore, clear that the assessee will not be entitled to have benefit or credit for the amount though mentioned in the certificate for the assessment year if income relatable to the amount is not shown and is not assessable in that assessment year. If instead of entire income referable to amount of tax deducted, only a portion of income is found assessable the benefit has to be allowed only on the portion shown. If balance income, on account of system of accounting followed by the assessee or f....
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.... assessee as per the provisions of the law and the Rules made thereunder and the Department cannot simply deny that no credit shall be granted because in the year in which assessee offered income, tax has not been deducted and not appearing Form No. 26AS, whereas in subsequent assessment year TDS is appearing in Form No. 26AS, but corresponding income is not reflecting there. The Department cannot swallow tax paid by the assessee and deny credit of tax deducted, which pertains to the assessee. In the instant case, the assessee has offered the income following the accrual system. As far as rental income is concerned, if tax has been deducted and deposited in subsequent year, the assessee should be allowed credit of same in the year under consideration of tax which has been deducted subsequently. However, the assessee could not be allowed the benefit of the interest on refund which arise if any on account of credit of tax deducted and deposit in the subsequent assessment year. We accordingly set aside the finding of the Ld. CIT(A) on the issue-in-dispute and direct the Ld. Assessing Officer to verify the amount of tax deducted and deposited in respect of income from rental property w....