TaxTMI 
TaxTMI 
2024 (11) TMI 1260
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....law. 2. Under the facts and circumstances, the learned CIT (A) has erred in directing the Assessing Officer to allow credit of TDS without appreciating the fact that, the claim of the assessee is not in conformity with the provisions of Rule 37BA(3)(ii) of the Income Tax Rules, 1962. 3. Under the facts and circumstances, the learned CIT (A) has failed to appreciate the fact that the assessee has claimed credit for TDS of Rs. 3,15,30,612/- but the corresponding income attributable to TDS amount was not disclosed in the return of income filed for the A.Y 2017-18. 4. Any other ground that may be urged at the time of hearing". 3. The brief facts of the case are that, the appellant company filed its return of income....
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....that, as per provisions of Rule 37BA(3)(ii) of the Income Tax Rules, 1962, the appellant is not eligible to claim credit for TDS, to an extent of Rs. 3,15,30,612/- thereby raising a demand of Rs. 1,86,456,548/-. 4. The appellant aggrieved by the said order passed by the Assessing Officer u/s 154 of the I.T. Act, 1961, has filed an appeal before the learned CIT (A). Before the learned CIT (A), the appellant submitted that it has received mobilization advance of Rs. 157.65 crores on which TDS of Rs. 3,15,30,612/- was deducted. Subsequently, the works allotted to the appellant for which mobilization advance given was cancelled. As per provisions of Rule 37BA(3)(ii) of the Income Tax Rules, 1962, when the income is assessable over a number o....
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....e the Tribunal. 6. The learned DR submitted that, the learned CIT (A) erred in directing the Assessing Officer to allow credit of TDS of Rs. 3,15,30,612/- without appreciating the fact that, the claim of the assessee is not in conformity with the provisions of Rule 37BA(3)(ii) of the Income Tax Rules, 1962. The learned DR further submitted that, the assessee has originally claimed TDS credit of Rs. 3,57,74,970/-. The CPC issued defect notice u/s 139(9) on 1/6/2018, as the TDS has been claimed but, the corresponding income has not been offered to tax as per provisions of Rule 37BA(3)(ii) r.w.s. 199 of the Income Tax Rules, 1962. In response, the assessee submitted that it has received mobilization advance of Rs. 157.65 crores, on which TD....
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....works awarded to the appellant has been terminated and cancelled by M/s. BGR Mining and Infra Pvt Ltd, vide their letter dated 7/4/2018 and mobilization advance paid to the appellant has been recalled. Since the work has been cancelled and mobilization advance has been returned, net of TDS, the appellant has rightly claimed TDS credit available, as per Form 26AS for the A.Y under consideration, because there is no income to be offered on said contract, either for the A.Y in question, or for the subsequent A.Ys. The learned CIT (A) after considering the peculiar facts of the case, has rightly held that section 199 r.w. Rule 37BA(3)(ii) of the Income Tax Rules, 1962 is not applicable to the appellant and accordingly directed the Assessing Off....