TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 88
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....isallowance by the Assessing Officer of credit of Tax Deducted at Source amounting to Rs. 73,31,953/- claimed during the year under consideration in respect of Tax Deduction at Source pertaining to earlier years which were denied during the assessments of the respective years." The other grounds raised in the appeal are in support of ground no. 1 of the appeal. 3. The brief facts of the case as emanating from records are: The assessee is engaged in providing customised software in the field of medical prescription data. The assessee entered into a joint venture agreement. As per the said agreement, the assessee was to develop software to capture, analyse and report the data made available to it. The development of the software was complet....
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....esentative (AR) pointed that the provisions of AS7 are not applicable as the assessee is not in the business of construction of software but a development thereof. The learned AR further contended that the AO has erred in holding that the assessee has not recognised contract revenue and contract expenditure in the profit and loss account. Since, inception of the project till date and hence, the claim of TDS in respect of such Revenue is unjustified. To controvert the observations of AO, the learned AR submits that Rule 37BA uses the term "income assessable" and not "income assessed". The term assessable is used to ensure that income on which tax has been deducted enters the computation machinery. The term assessable thus pre supposes that t....
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....neering India Limited Vs. JCIT 100 TTJ Mumbai 373, 2) Supreme Renewable Energy Vs. ITO 128 TTJ Chennai 352, 3) CIT Vs. Bokaro Steel Limited 236 ITR 315, 5. Per contra, Shri Abhijit Chaudhari representing the Department vehemently defended the order of CIT(A) and prayed for dismissing the appeal of assessee. The learned Departmental Representative (DR) submitted that the CIT(A) in the preceding assessment years, that is AY 2011-12 in assessee's own case, has dismissed the appeal of assessee on identical issue. Since, there are no change in facts in the impugned assessment year, the CIT(A) followed earlier year order and dismissed the appeal of assessee. 6. Both sides heard, orders of authorities below examined. The fact that the assess....
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....ng credit of TDS which has been earlier denied to the assessee. As per provisions of section 199 of the Act, tax deducted at source and paid to government exchequer is treated as payment of tax on behalf of the person for whom TDS was made. Rule 37BA(3) further clarifies that credit for TDS shall be given for assessment year for which such income is assessable. 8. In the case of Supreme Renewable Energy Vs. ITO (supra) the Tribunal following the decision in the case of CIT vs. Karnal Co-Op Sugar Mills Ltd., 243 ITR 2(SC) held that when the interest income is incidental to the acquisition and installation of an asset and not directly liable for tax, assessee is entitled for the credit of the TDS from the interest income which has been duly ....
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....x 9. From the above it is clear that when a particular income is received by the assessee after deduction of tax at source and the said TDS has been duly deposited with the Government and the assessee has received the requisite certificate to this effect, then on production of the said certificate the assessee becomes entitled for the credit of TDS even if the assessee has not directly offered the said income for tax as the assessee considered the same was not liable to tax. 10. In view of the above mentioned decisions of the Supreme Court and order of this Tribunal, it is clear position of law that when TDS is made on a particular income which is otherwise not liable for tax, the assessee is entitled for the said credit of the TDS. In ....