Case Law Details
Prakash Sunrise Healthcare Limited Vs ITO (ITAT Delhi)
It is the case of the assessee that assessee being a company, follows accrual method of accounting whereas the corresponding deductors follow cash method and deducted TDS in the year in which the invoice of the assessee is acknowledged and accounting entries are made in their books. It is further pointed out that minute details have been given for each and every govt. employee who have availed the services on behalf of the deductor, namely, ECHS Bareilly, ECHS Meerut, ECHS Babugarh and Bank of Baroda. The assessee thus asserts that the mismatch on account of TDS is beyond the control on the part of the assessee and such mismatch resulting from different accounting policies adopted by Assessee and deductors have occurred in the past and will continue to occur in other years also until a device is put in place of making the accounting method uniform for all assessees or making suitable amendment in the law to remedy the situation.
We find prima facie merit in the plea of the assessee assigning the reason for mismatch. We notice that the assessee has placed threadbare details of various patients availing services of the assessee nursing home through the deductor agencies. Therefore, on first principles, the TDS credit cannot, per se, be denied to the assessee where the TDS has been eventually deducted and deposited in the Government Treasury. The Revenue is under obligation to give suitable credit for such deduction either in the year in which the corresponding income has been declared or in the year in which TDS credit has been received in the Treasury. Thus, when seen in perspective, the claim of the assessee is in tune with the judgment of the Hon’ble Delhi High Court in Court On Its Own Motion (supra). Having come to this conclusion, however, the underlying factual details to demonstrate the inclusion of corresponding receipts in other years may need some verification by the Assessing Officer. Thus matter is remitted back to the file of Assessing Officer for ascertainment of factual assertions. The Assessing Officer shall grant credit of TDS deducted and claimed by the assessee on being satisfied with the fact that the corresponding income has been duly declared by the assessee in any of the assessment years. The matter is accordingly remitted to the file of the Assessing Officer for verification, if any, and for grant of TDS credit as claimed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been filed by the Assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [‘CIT(A)’ in short] dated 22.03.2022 arising from the assessment order dated 26.08.2020 passed by the Assessing Officer (AO) under Section 154 of the Income Tax Act, 1961 (the Act) concerning AY 2018-19.
Please become a member. If you are already a member, login here to access the full content.
