TaxTMI 
TaxTMI 
2025 (5) TMI 613
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....paid at source, is to be given credit. 2. Addl/JCIT (Appeals) is not correct in reasoning that Exempt Income Schedule in Return Form was not filled, while issue involved does not relate to income; TDS Schedule was however filled in e-return with Rs. 10.50 Crores, Agricultural Land Sale Amount), narrating it as "Exempt Income". "Non mentioning of such income in one of columns of income tax return was to be understood as an inadvertent mistake because in same Form of Return of Income, at more than one place, assessee had shown such income to be entitled for concessional rate of taxation" - (2015) 155 ITD 41-44 CCH 734 (Mum) H- Himanshu Nalin Kaj vs. DCIT- ITA No. 6073/Mum/2013. 4. It ought to have been appreciated t....
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.... as exempt income in ITR, though claimed to be exempt income, but corresponding TDS amount was claimed, the CPC has denied said TDS amounting to Rs. 10,50,000/- to the assessee on account of mismatch of corresponding income. 4. Aggrieved, the assessee challenged order of assessment before the CIT(A). The CIT(A) has dismissed the appeal of the assessee by upholding order of the CPC u/s. 143(1) of the Act as under: "The appellant had claimed that it has earned exempt capital gain on sale of agricultural land amounting to Rs. 10.5 Crores on which the purchaser had deducted TDS @ 1% being Rs. 10.5 Lakhs by mistake and since the receipts of the sale of rural agricultural land are exempt from taxation, so it had not shown such receipt....
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....as the same is exempt from taxation. The reason given by the AO, CPC at page 14 of the intimation was that the total receipts as per the form 26AS (Rs.10,62,00,000/-) were higher than the total receipts as per Rule 37BA. The difference in the gross receipts shown in the ROI and available in Form 26AS is the exempt sale consideration of Rs. 10,50,00,000/- which was not required to be shown in the return of income. The assessee further submitted that Rule 37BA of the Income Tax Rules, 1962 does not apply to the appellant for the reason that it only applies in the case of income that is assessable to tax. 6. The ld. D.R. submitted that the income was not reflected whether it is an agricultural land and the selling of the said land, therefor....
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.... Explanation.--For the purposes of this section,-- (a) "agricultural land" means agricultural land in India, not being a land situate in any area referred to in items (a) and (b) of sub- clause (iii) of clause (14) of section 2; (b) "immovable property" means any land (other than agricultural land) or any building or part of a building." Rule 37BA of the Income Tax Rules, 1962 which has been invoked in the instant case reads as under:- 37BA. Credit for tax deducted at source for the purposes of section 199. (1) Credit for tax deducted at source and paid to the Central Government in accordance with the provisions of Chapter XVII, shall be given to the person to whom payment has been made or ....
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.... (ii)Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. [Emphasis supplied by us] 8. From the perusal of the section 194IA, it is ample clear that this section 194IA applies to immovable property other than agricultural land. Rule 37BA of the Income Tax Rules, 1962 also does not apply to the appellant for the reason that it only applies in the case of income that is assessable to tax. We also find that the AO, CPC does not take into account the agricultural income declared in the return of income when comparing the gross recei....