Gopikishan Pallod Vs ITO (ITAT Hyderabad)
Assessee is an e commerce participant & selling goods through Amazon Seller Services (P) Ltd & Reliance Retail Ltd etc. Assessee has made a turnover of Rs1.39 crores through e-commerce operators on which TDS @ 1% has been deducted by the e-commerce platform operators. Out of the above sale, assessee has shown sales return of Rs 23.87 lakhs & the net sales turnover declared by the assessee for the year under consideration was at Rs.1.15 Cr. Assessee has claimed TDS credit of Rs 1,62,412 on the basis of Form No.26AS. CPC, allowed the proportionate credit for TDS at Rs1,38,211 & according to CPC as per Rule 37BA credit for TDS shall be allowed in the year in which income relatable to said TDS has been declared. CIT(A) upheld the AO’s order.
On appeal, Tribunal observed that AO misunderstood the facts & observed that the assessee has reported only part of the turnover & not entire turnover on which TDS has been deducted, only on the basis of the turnover reported in financial statement, even though the assessee has reconciled the said turnover with sales return. AO is erred in allowing credit for TDS on proportionate basis, even though the assessee has offered the income in total for the year under consideration.
