Case Law Details
Aricent Technologies Holdings Ltd. Vs ACIT (ITAT Delhi)
Conclusion: Credit for tax deducted at source, which was deducted from the account of the deductee, by the deductor, was to be allowed as taxes paid in the hands of the deductee, irrespective of the fact whether the same had been deposited by the deductor to the credit of the Central Government or not.
Held: Assessee had furnished the details party-wise of the amounts deducted out of payments due to assessee which amounted to Rs.18.79 crores. AO as against the claim of Rs.18.79 crores had allowed credit for 16.57 crores. Assessee contended that firstly, in case subsequent to the processing of the assessment order, if changes were made in the Form No.26AS by the parties, who had deducted tax at source, out of the payment made to assessee, then the credit of the same should be allowed to assessee. Secondly, in case deductor deducted tax at source out of payments due / paid to the assessee; but did not deposit the tax withheld by it, then why should the assessee suffer? It was held that in terms of section 205, assessee/deductee could not be called upon to pay tax, to the extent to which tax had been deducted from the payments due. Consequently, it followed that credit for such tax deducted at source, which was deducted from the account of the deductee, by the deductor, was to be allowed as taxes paid in the hands of the deductee, irrespective of the fact whether the same had been deposited by the deductor to the credit of the Central Government or not. The deductee in such circumstances could not be denied credit of tax deducted at source on its behalf. Under the Act, the provisions were enshrined under which recovery of tax from the account of the person, who had deducted the such tax, were provided. Accordingly, where assessee was able to furnish the necessary details with regard to tax deduction at source out of the amounts due to it, then the action which followed was allowing the credit of such tax deducted at source to the account of the deductee. In case where the deductor deposited the tax deducted at source to the credit of the Central Government and the deduction reflected in Form No.26AS may be on a later date, then it was incumbent upon assessee to produce the necessary evidence in this regard and it was also the duty of AO to allow such credit of tax deducted at source, as taxes paid in the hands of the deductee assessee.
FULL TEXT OF THE ITAT JUDGEMENT
The appeal filed by assessee is against order of Assessing Officer dated 30.05.2019 relating to assessment year 2015-16 under section 144 r.w.s. 143(3) of the Income-tax Act, 1961 (in short “Act”).
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I have repeatedly been commenting that the Department and CPC are immune to all such court orders. Only rich can afford to challenge in court. What about small assessees like me who routinely lose around a thousand rupees each year because it is not seen in 26AS. Why Can’t CPC introduce a method by which assessee can report TDS but NOT seem in 26AS?