TaxTMI 
TaxTMI 
2024 (10) TMI 76
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....ation-1(1), Chennai (AO) u/s 147 r.w.s. 144C(13) of the Act pursuant to the directions of Ld. Dispute Resolution Panel-2, Bengaluru (DRP) u/s 144C of the Act dated 20.11.2023. The substantive grievance of the assessee are denial of Tax Deducted at Source (TDS) credit by lower authorities and challenge of the assumption of jurisdiction u/s 147 of the Act by ld.AO. 2. The assessee has raised the following grounds of appeal:- 1. ''General 1.1. The order of the learned Assessing Officer ("AO") is contrary to canons of equity and natural justice, contrary to law and facts involved, not based on facts and circumstances of the case, contrary to mandatory provisions of the Income-tax Act, 1961 ("Act"), lacks jurisdiction and is....
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....he finality to decide the tax amount. 2.8. The Ld. AO and DRP failed to appreciate the judicial precedents cited by the appellant and stated that the case laws are different from the case of the appellant. 3. Reopening of Assessment u/s 147 of the act is invalid 3.1. The DRP has erred in upholding the reopening the assessment under section 147 of the Act in the absence of essential conditions necessary for reopening the assessment. 3.2. The Ld. AO and DRP ought to have appreciated that "income chargeable to tax has escaped assessment" constitute a condition precedent to the exercise of jurisdiction under section 148 of the Act and as such restricting TDS credits cannot form the basis for reopening the ass....
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....geable to tax of the appellant, represented in the form of asset, has escaped assessment. The AO and the DRP ought to have appreciated that there is no income which is chargeable to tax represented in the form an asset has escaped assessment which is imperative for initiating re-assessment proceedings beyond three years. Restricting TDS credits available in Form 26AS/ taxing the excess revenue appearing in Form 26AS for AY 2015-16 does not represent any asset in the hands of the appellant as per section 149 of the Act. Each of the above ground is independent and without prejudice to the other grounds of appeal preferred by the Appellant. The Appellant craves leave to add, alter, vary, omit, substitute or amend the above gr....
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....mpleted without any adjustments. Subsequently, re-assessment proceedings were initiated under Section 147 by the AO and draft assessment order was passed dated 20.02.2023 under section 143(3) read with section 147 read with section 144C of the Act, by restricting the TDS credit to Rs. 3,19,09,594/- i.e. to a proportion of the royalty income offered to tax instead of granting the full TDS credit available as per Form 26AS of the appellant. The Appellant filed an application before the Hon'ble Dispute Resolution Panel ("DRP") under section 144C of the Act. The ld.DRP, vide its directions confirmed the draft assessment order passed by the AO, pursuant to which the AO passed the final assessment order dated 12.12.2023. Aggrieved, assessee prefe....
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.... transpired that the assessee earned contractual royalty income from M/s Dassault Systems India Pvt. Ltd. and offered the same to tax. However, in the financial statements, the assessee offered royalty income of Rs. 37.86 Crores whereas as per Form 26AS, the payer entity paid an amount of Rs. 69.83 Crores to the assessee after deducting tax at source for Rs. 7.62 Crores. 4. The assessee explained that the amount reflected in Form 26AS represents gross invoices raised by the assessee which, in turn, are based on the amounts reported by the deductor payer in its TDS returns. However, the assessee has raised few credit notes subsequent to raising of invoices which were not reflected in Form 26AS since the same would not have any TDS i....
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....ould never accrue to the assessee, nevertheless, TDS as been deducted against these payments and the same has been deducted against the assessee. Therefore, the assessee would be entitled for the credit of the same. The amount of credit notes could not be held to be the income of the assessee. Therefore, lower authorities are not justified in denying the credit of the same. The provisions of Sec. 155(14) would not apply since these provisions would apply only in cases where the TDS certificate is furnished later and where the income has not been disclosed in the return of income. In the present case, the income to the extent of credit notes would never accrue to the assessee and hence, there is no question of offering the same to tax. The L....