TaxTMI 
TaxTMI 
2023 (12) TMI 275
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.... AO') under section 143(1) of the Income Tax Act (hereinafter referred to as 'the Act') on 24.06.2020 for the Assessment Year 2019-20. 2. The Assessee has raised the following grounds of appeal:- "1. On the facts and circumstances of the case, the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) is bad both in the eyes of law and on facts. 2. (i) On the facts and circumstances of the case, the learned CIT(A), NFAC has erred both on facts and in law in confirming the action of the AO (CPC) disallowing the credit of Rs 10,80,720/- on account of Tax deducted at source (TDS) claimed by the assessee. (ii) That the above disallowance of credit has been confirmed ignorin....
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....td., a Govt. of India Enterprise. During the year under consideration, the assessee filed its return of income for Assessment Year 2019-20 on 26.08.2019 claiming refund of Rs. 10,80,720/- on account of TDS u/s 194A of the Act deducted by Tata Projects Ltd. This return was duly processed u/s 143(1) of the Act, wherein the income returned was accepted but TDS credit of Rs. 10,80,720/- was not granted by the Ld. CPC u/s 143(1) of the Act, on the ground that the same is not reflected in Form No. 26AS of the assessee. This action of the Ld. CPC was upheld by the Ld. CIT(A) / (NFAC) by observing as under: 6. During appellate proceedings, in response to the hearing notice u/s 250 dated 18.10.2022 fixed for hearing on 27.10.2022 the appell....
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.... earned by the assessee on said advances given to the contractors which is inextricably linked with the business activity of the assessee i.e. "construction activity" was credited to other income and the same was reduced from the "Expenditure during the construction period" in the balance sheet. This was done on the ground that project of the assessee had not yet commenced and the entire expenditure incurred towards project had been routed under 'Expenditure during the construction period' and since the interest income earned on advances given to the contractors was inextricably linked with the business activity of the assessee, the same was duly reduced from the said project expenditure reflected in 'Expenditure during the construction per....
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....ITAT Mumbai. The relevant operative part of the said judgment is reproduced herein below:- 7. In the instant case it is not in dispute that TDS has been deducted in respect of sale of software patches. The credit of TDS deducted on aforesaid sale has not been to the relevant assessment year as the assessee had not disclosed the income from sale of software patches and modules and the same was instead reduced from the cost of software development. The assesses following Project Completion Method to recognize its revenue. The assesses is now claiming credit of TUS which has been earlier denied to the assessee. As per provisions of section 159 of the Act, tax deducties at source and paid to government exchequer is treated as payment o....
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....h was duly received by the Government shall be refunded to the assessee or the assessee is entitled for the credit of the same. The Government cannot benefit itself by taking advantage of legal technicalities. Even otherwise, once the income receipt has been deducted from the cost of machinery to be installed the assessee has indirectly offered the same for assessment and taxation because due to the reduction of cost of the machinery the depreciation on the said machinery would be lesser and the net result of this would be offering the same income otherwise. 7. xxxxxxxxxxxxx 8. xxxxxxxxxxx 9. From the above it is clear that when a particular income is received by the assessee after deduction of tax at source and t....