TaxTMI 
TaxTMI 
2023 (4) TMI 27
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....t of the case. 2. That in view of the matter, action of Ld. CIT(A) in confirming the disallowance made by CPC and further making addition of Rs. 16,34,060/- on account of employee's contribution to ESI and EPF is not sustainable on various legal and factual ground. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in taking a view that amendment in section 36(1)(va) of the Act is retrospective in nature. 4. That Ld. CIT(A) has erred in confirming the action of CPC by not allowing the claim of brought forward TDS of Rs.9,94,719/- as per Section 199 read with rule 37BA though the related income is properly declared in the Income Tax Return and was also appearing in previous F....
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....d the submissions as made in the written submission. For the sake of clarity, the relevant contents of the written submissions are reproduced as under:- "Ground No.4 - That Ld. CIT(A) has erred in confirming the action of CPC by not allowing the claim of brought forward TDS of Rs.9,94,719/- as per section 199 read with rule 37BA though the related income is properly declared in the Income Tax Return and was also appearing in previous Form 26AS of that earlier Assessment Year. During the year under consideration, appellant has made a claim of brought forward TDS in income tax return since income corresponding to brought forward TDS offered to tax in concerned assessment year only. But while processing the return of income b....
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....s may be necessary, including the rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and sub-section (2) and also the assessment year for which such credit may be given. Relevant extract of Rule 37BA - Credit for tax deducted at source for the purposes of section 199 is as follows: (3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the i....
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.... 39,98,032 9,94,719 9,94,719 4,97,35,943 The above transactions have duly been incorporated in AY 2018-19 income tax return and is also appearing in Form 26AS of AY 2018- 19. Therefore, claim of brought forward TDS by the appellant in income tax return for AY 2019-20 cannot be denied mere on the ground that it is not appearing the Form 26AS of AY 2019-20 as appellant has duly taken care of the requirements of rule 37BA of Income Tax Rules, 1962 read with section 199 of the Income Tax Act, 1961 for carrying forward and brought forward of TDS. Further, the appellant has duly submitted the above table and explanation before the Hon'ble Commissioner of Income Tax (Appeals) but Hon'ble CIT(A) also....
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.... 40,89,90,422 81,84,117 (A-B) 8,88,75,701 17,77,614 (i) Income related to the brought forward TDS recognized during the current AY 4,97,35,943 9,94,719 (ii) TDS not deposited by the deductor but claimed in ITR 3,91,39,756 7,82,892 (i+ii) 8,88,75,701 17,77,611 Note:-Brought forward TDS of Rs.40,000/- is further carried forward to AY 2020-21 from last year (i.e. AY 2018-19) AY 2018-19 Reconciliation Particulars Amount Related TDS Income as per Financials Income actually shown in Curre....