Space Developers Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad uphold the CIT(A) order restricting TDS credit in proportion of income returned to tax. Accordingly, appeal of the assessee dismissed.
Facts- It was intimated by CPC to the assessee the total TDS credit claimed by the assessee was to the tune of Rs.5,24,600/-, which was restricted to Rs.4,07,968/-, in proportion of the income returned to tax to that on which TDS was deducted. It was noted that while TDS of Rs. 5,24,600/-had been deducted on an income of Rs.5,24,60,000/-, the assessee had returned income only to the tune of Rs.4,07,96,898/- in the return of income. Accordingly, in terms of the provisions of Section 199 of the Income Tax Act, 1961 read with Rule 37BA of the Income Tax Rules, 1962, the TDS credit was restricted to the tune of TDS pertaining to the income returned to tax in the impugned year and the balance credit was accordingly disallowed.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held we see no reason to interfere with the order of the Ld.CIT(A) dated 09/08/2024 confirming the adjustment made by the CPC in the intimation made u/s.143(1) of the Act, restricting the grant of TDS credit to the tune of Rs.4,07,968/- as against TDS credit of Rs.5,24,600/-claimed by the assessee. But, at the same time, since the assessee has consistently pleaded both before the CPC and also the Ld.CIT(A) that the gross receipts on which TDS was deducted during the impugned assessment year amounting to Rs.5,24,60,000/- included receipts which had already been returned to tax in the preceding two assessment years; i.e. AYs 2021-22 & 2022-23 as tabulated above, the AO is directed to give necessary credit of TDS to the income returned to tax in those years. In terms of the aforesaid directions given by us, the appeal of the assessee is dismissed.
