TaxTMI 
TaxTMI 
2026 (7) TMI 490
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....ing to the case are that the return of income filed by the assessee for the impugned assessment year, A.Y 2022- 23, was processed u/s 143(1)(a) of the Act and TDS claimed by the assessee to the tune of Rs. 2,37,479/- was restricted to Rs. 10,037/-. The reason for the same was that the assessee being a KacchhaArahtia, which involved primarily facilitating the sale of agricultural produce on behalf of the farmers, was earning income in form of Adat/commission for the services rendered in arranging these sales transactions, and had declared commission receipts of Rs. 2,94,975/- in the return of income originally filed u/s 139(1) of the Act. The assessee had claimed the benefit of TDS deduction on his income amounting to Rs. 2,37,479/- u/s 194Q, 194H and 194A of the Act. The CPC however, considered only the commission receipt for the purpose of giving credit of TDS and accordingly gave proportionate credit of TDS of Rs. 10,000/- out of actual TDS of Rs. 2,37,479/-. The intimation made u/s 143(1)(a) of the Act was confirmed by the Ld. CIT(A) in the appeal filed by the assessee. Aggrieved, by which the assessee has come up in appeal before me, raising following grounds of appeal:- ....
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....) and 154, submission/details uploaded in the system and the grounds of appeal raised and find that the issue of TDS is hinged on TDS deducted under various sections. The appeal is being disposed of accordingly. 5.2.1 TDS u/s 194Q: It is the appellant's contention that he is a commission agent (KachhaArahtiya) and the turnover related to the Arahtiya is not included in his turnover. In this regard, appellant has relied on CBDT Circular no. 452 dated17/03/1986. Hence, it is claimed that credit for entire TDS should be given even though the corresponding income is limited to a fraction there of which is offered by way of commission is his hands. 5.2.2 The issue of credit of TDS and taxing the corresponding income are governed by the provisions of section 199 of the Income Tax Act, 1961 and Rule37BA of Income Tax Rules, 1962 (hereinafter referred to as the Rules), extracted "199. (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of....
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....given for the assessment year for which such income is assessable (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 1[(3A) Notwithstanding anything contained in sub-rule (1), sub-rule (2) or sub-rule(3), for the purposes of section 194N, credit for tax deducted at source shall be given to the person from whose account tax is deducted and paid to the Central Government account for the assessment year relevant to the previous year in which such tax deduction is made.] (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of- (i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorised by such authority, and (ii) the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management strategy formulated by the Board from time to ti....
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....he Act applies to any buyer/purchaser for purchase of any goods whose value or aggregate of value exceeds fifty lakh rupees in any previous year. The buyer, at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier, is required to deduct an amount equal to 0.1% of such sum exceeding fifty lakh rupees as income tax. The Buyer has been defined as a person whose total sales or gross receipts or turnover from the business carried on by him exceeds ten crore rupees during the financial year immediately preceding the financial year in which the purchase of goods is carried out. 5.2.4 The appellant has submitted that in view of CBDT circular no. 452 dated 17/03/1986 has not included the sales on which TDS has been made u/s. 194Q by the purchaser. A perusal of the circular, it is clear that the remuneration/reward of kachhaarahtiya consists solely of commission and therefore his turnover comprises of only the commission income and not the sales effected for which he has received the commission. 5.2.5 As per the provisions of Section 199 of the Act and Rule 37BA(2) of the Rules, both income and TDS are to be considered i....
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....as they do not pertain to TDS deducted u/s 194Q and the equivalent receipts not being reported. 5.2.9 TDS u/s 194A and other sections: In the order u/s 143(1) and 154 TDS credit of Rs. 10,037/- was allowed as against the appellant's claim of Rs. 2,37,479/-. Since TDS credit of Rs. 74,072/-has been rightly withheld by AO, CPC, out of balance TDS of Rs. 1,63,407/- the AO, CPC has allowed credit of Rs 10,037/-. Hence the TDS credit in dispute is Rs. 1,53,370/-. Since the TDS credit claimed by the appellant u/s194A and other sections is required to be verified along with the corresponding income offered for taxation, the Jurisdictional A.O. (JAO) is directed to verify that the corresponding income has been offered to tax and thereafter allow the TDS claimed u/s 194A and other sections. Hence, Ground No. 3.1 is partly allowed for statistical purpose." 8. A perusal of the order of Ld. CIT(A) reveals that he has noted following facts in the present case. * That the assessee is a commission agent and it is only commission income earned by him, which is liable to tax and not the total turnover on which he earns commission income. This fact is noted at para 5.2.1. of....