2023 (11) TMI 77

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....Income Tax Act, 1961(the Act) dated 1/12/2016, was allowed. 02. The Learned Assessing Officer is aggrieved and has raised the following grounds of appeal: 1. Whether in facts and in the circumstances of the case, the Ld. CIT(A) erred by directing to give credit of all TDS reflecting in Form 26AS amounting to Rs. 1,74,05,48,105/- when assessee in revised return has offered income of Rs. 412,48,94,156/- corresponding to TDS of Rs. 168,45,14,220/- only. 2. Whether in facts and circumstances of the case and in law, the Ld.CIT(A) erred by directing to give credit for TDS of Rs. 5,60,33,885/- reflecting in Form 26AS without verifying if assessee has offered corresponding income to tax or not considering the fact that TDS amou....

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....itted that the expenditure is purely revenue in nature as the cost of employees' remuneration. 05. The Learned Assessing Officer disallowed the same, holding that it is a capital expenditure. The Learned Assessing Officer also stated that this expenditure is notional in nature and contingent. Accordingly, the same was disallowed. 06. Assessment order was passed under section 143(3) of the Act on 1/12/2016, determining the total income of the assessee at Rs. 412,77,41,160/-. 07. The assessee, aggrieved with that order, has preferred an appeal before the Learned CIT-A. The assessee has, over and above, raised a ground of disallowance of reimbursement of ESOP expenses also that the TDS credit of Rs. 174,05,48,105/- has not been grante....

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....om the facts, we find that as per the revised return of income, the assessee has claimed TDS credit of Rs. 168,45,14,220/-. However, the Learned Assessing Officer granted the credit of only Rs. 136,06,39,690/-. In Form No.26AS, later on, because of late deposit of TDS by some of the customers, a further incremental TDS credit of Rs. 5,60,33,885/- was reflected. The Learned CIT-A held that the credit available in Form No.26As should have been granted by the Learned Assessing Officer. We do not find any infirmity in the order of the Learned CIT-A in granting the total credit of TDS of Rs. 174,05,48,105/-. It is not the case of the Revenue that the income comprising the TDS has not been offered by the assessee in its income in the impugned ass....