2018 (2) TMI 2155

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....volves around a single issue viz. the ld. Assessing Officer has erred in not allowing TDS credit of Rs. 33,09,000/-. 2. The brief facts of the case are that the assessee has filed her return of income on 28.09.2012 declaring total income of Rs. 2,49,83,210/-. The case of the assessee was selected for scrutiny assessment and notice under Section 143(2) was issued and served upon the assessee. It emerges out from the record that the assessee has rendered services in the field of SAP implementation to one of its clients namely M/s. Jain Infraprojects Limited, a public limited company having its registered office at 5th floor, Premlata, 39, Shakespeare Sarani, Kolkata. The assessee had raised three invoices aggregating to Rs. 3,30,90,000/-; ....

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....s is not a case of tax deducted at source. The letter given by the payer cannot be believed as he did not deposit single rupee out of the so called TDS. Looking to these facts, the provisions of section 199 & 205 are not applicable to the appellant's case, therefore, appeal of the appellant is dismissed." 3. Learned Counsel for the assessee, while impugning the orders of the Revenue Authorities, took us through the papers, i.e. invoices raised by the assessee, letter of M/s. Jain Infraprojects Limited, TDS details etc. He further contended that Section 205 of the Income-tax Act puts bar upon the Assessing Officer for affecting the recovery against an assessee whose receipts have already suffered TDS. In the present case also the demand c....

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.... never cross verified. We fail to understand the basis of recording the finding by the ld. CIT(A) in paragraph no.5.1 extracted supra. How the ld. First Appellate Authority reached at conclusion that tax was not deducted at source? This conclusion has been based on the inference that since the assessee failed to pursue legal remedies against the deductor for persuading him to deposit the deducted amount in the Government Treasury. This inference is totally misplaced. It is not supported by any evidence. Considering this aspect, we deem it appropriate to set aside this issue to the file of the Assessing Officer. The Assessing Officer shall first determine as to whether on the alleged payment received by the assessee, TDS was to be deducted o....