TaxTMI 
TaxTMI 
2024 (12) TMI 1795
X X X X Extracts X X X X
X X X X Extracts X X X X
....ef facts of the case are that assessee is a Chartered accountant firm and follows cash system of accounting. Hence credit for TDS is claimed in the year of receipt of professional fees, while clients make provisions as on 31.3.2016 which is paid after audit is completed and bill are raised in Financial year 2016-17(AY 2017-18). In the return filed by the assessee, TDS claimed is Rs. 5,83,198/-. In the return processed by Central Processing Centre (CPC), Bengaluru of the Department u/s. 143(1), credit for TDS was given for Rs. 5,30,673/-. Subsequent to this, assessee applied for rectification of mistake in respect of short credit of TDS by making application u/s. 154 which was done three times and every time there was some incremental credit given to the assessee vide three different orders u/s. 154, dated 8.12.2018, 16.08.2021 and 22.02.2023. Accordingly, till the last leg of order u/s. 154, there is a balance TDS credit of Rs. 42,275/- which remains to be given to the assessee as claimed by it in its return of income. This comprises of two component, first of Rs. 26,305/- which has not been allowed despite reconciliation furnished vis-à-vis Form 26AS for the preceding and t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ear 2017-18 is extracted below: 3.5. Thus, from the above reconciliation statements, assessee demonstrated that owing to cash system of accounting followed by it, it has carried forward the credit of TDS to the subsequent year both in Assessment Year 2016-17 and in Assessment Year 2017-18, for which the entries were reflected in Form 26AS, either for Assessment Year 2016-17 or for Assessment Year 2017-18. From the detailed explanation given by the assessee, as already noted for Rs. 26,305/-all the corresponding TDS entries have been mapped to the entries reflected in Form 26AS for Assessment Year 2016-17 and 2017-18. These forms are placed in the Paper Book which have been perused. 3.6. Ld. CIT(A), while disposing the appeal of the assessee noted in respect of claim of credit of Rs. 26,805/- that assessee has not claimed any brought forward of TDS and also that no TDS was carried forward. In this respect, reference was made to "schedule 15B1-TDS1: details of tax deducted at source from income (as per Form 16A issued by deductors)" forming part of the return filed by the assessee on 20.03.2020, pursuant to rectification application filed u/s. 154 for Assessment Year 2017-18 wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t of tax liability on such income, there is a TDS done by the payer and who is at fault of not depositing the same, for which assessee cannot be held to be liable to pay such tax arrears. Asking assessee to pay such tax arrears by not giving credit for TDS already done by the payer leads to double jeopardy at the end of the assessee. One, it has not received the full value of invoice raised by it since part of it has been withheld by the payer towards TDS. Second, on claiming credit of TDS done by the payer under a bonafide belief that the same would have been deposited by the payer in accordance with the provisions of law and not giving credit, since the payer has defaulted/not deposited the withheld amount, because of which the said amount is not reflected in Form 26AS of the assessee. This either leads to a demand at the end of the assessee or reduces the refund claimed by it. Section 205 puts a bar on direct demand against the assessee in such cases and demand on account of such tax credit mismatch cannot be enforced against the assessee. 5.1. To buttress this, we find force from the decision of Hon'ble High Court of Gujarat in the case of Milan Arvindbhai Patel vs. ACIT....
X X X X Extracts X X X X
X X X X Extracts X X X X
....no. 14 of 26 AS AY 2016/17 B/F Sr. no. 44 of 26 AS AY 2016/17 Gesture Securities 2519/- Page no. 10 Tunnu Investment 2519/- Page no. 11 Mehra Eyetech P. Ltd. 3740/- Page no. 12 Page no. 20 B/F 14300/-Sr. no. 28 of 26 AS AY 2016/17 & C/F 10560/-Sr. no. 27 of 26 AS AY 2017/18 Plaza Securities 2519/- Page no. 13 B/F Sr. no. 36 of 26 AS AY 2016/17 Agarsha Enterprises 2500/- Page no. 9 B/F Sr. no. 2 of 26 AS AY 2016/17 Mrunalini B Kotak 500/- Page no. 20 Total Rs. 26,305/- Appearing in Sr no. 30 26AS 17/18 Detailed TDS not paid by clients Biax Electric Meghdoot Refrigeration P.K Shah Shares Pvt. Ltd. Mrunalini B Kotak 11,000/- 165/- 55/- 4750/- Total Rs. 15,970/- Grand Total 42,275/- Document 2 1-Ap: 2:15 to 31-Mar-2015 26AS Books BIF AY 15-16 CIF to AY 17-18 To be coolmed Azpum - 6.872 90 6.759 20 3.931 00 4 008.00 6.799.00 AGRASHE ENTERPRISES 2.500 CG . 2 500 00 . SJ Shah rading Pyt Lig 8.000.00 8.50. 00 5.000.00 4 5.0 00 8.500.00 Amar Mur. Power Supply Sy 7,000 00 3.500 0G . 3.500 00 3.500.00 Biax 12,2Ö3.00 11.775 00 9.500.00 8.000.00 13.793.00 Chanduial Surajmal 7,377.00 7.377.00 . - 7.377.00 DR. GOPAL....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....00 Topaz 4,065.00 3,990.00 3,933.00 4,008.00 3.990.00 Tristar Oceanic Services Pv 13.000.00 12.000.00 6.000.00 7.000.00 12.000.00 Tunnu Investment 7,890.00 5,371.00 2,247.00 2.519.00 7.618.00 United India Assurance . 7,120.00 7,120.00 . 7.120.00 Veer Marine Pvt.Ltd. 3,664.00 3,664.00 - . 3.664.00 PICO Capital Pvt Ltd.(Veer ) 7,743.00 7,379.00 3,371.00 3.735.00 7.379.00 Western India Garments 9,733.00 9,583.00 7,865.00 8,015.00 9.583.00 Yasham P2D Life Science 3,300.00 . . 3,300.00 . Yasham Speciality 28,100.00 8,100.00 20,000.00 8.100.00 491,273.00 504,938.00 197,260.00 171,644.00 522,019.00 Claimed in return 500938/- Document 31-Apr-2015 to 31-Mar-2017 26AS Books BIF AY 16-17 CIF to AY 18-19 To be claimed Aapurt Finance Ltd 0 00 4008 00 4008 00 4,008.00 AGRASHA ENTERPRISES 1500 00 4000.00 2500 00 4,000.00 SJ Shạn Trading Pvt Ltd (Agarsha Alloy 7500 00 6500 00 5500 00 6500 00 6,500.00 Amar Man Power Supply System 7300 00 4800.00 3500.00 4800 00 6,000.00 --- Bax 0.00 11000 00 8000 00 8,000.00 --- BANER BIZ BAY 12500 00 0 00 12500 00 . Chandu/al Surajmal 2290 00 2290.00 0.00 2,290.00 COLOR IMAGE 4580 00 4580 00 0.00 4,580.00 Etech Engineers P....