Case Law Details
Larsen & Toubro Public Charitable Trust L&T House Vs ITO (ITAT Mumbai)
Rule 37BA(3)(ii) allows splitting up of TDS amount over a number of years if corresponding income is assessable over a number of years
A.R submitted that certain income received by the assessee is split between two or more years under accounting principles. Accordingly, the TDS credit was also split between those years in proportion to the income offered in each of the year. The Ld A.R submitted such kind of split up is permitted under Rule 37BA of Income tax Rules. However, the AO has assessed income so offered by the assessee without allowing corresponding tax credit. The Ld CIT(A) also confirmed the same. The Ld A.R submitted that the claim of the assessee is in accordance with law and accordingly prayed that the AO may be directed to allow credit of proportionate TDS claimed during this year.
ITAT notice that Rule 37BA(3)(ii) allows splitting up of TDS amount when the corresponding income is assessable over a number of years. It is stated that the credit for TDS shall be allowed across those years in the same proportion in which the income is assessable to tax.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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