Case Law Details
Neelkanth Developers Radhe Homes Vs ADIT (ITAT Ahmedabad)
ITAT Ahmedabad TDS credit cannot be denied on the ground that corresponding turnover has been offered to tax in the earlier assessment year.
Facts- The assessee is builder and developer and has offered income on the basis of percentage completion method, whereas the TDS has been deducted by the purchaser of the property u/s. 194-IA of the Act at the time of execution of sale deeds. Therefore, the case of the assessee is that that it is not possible at all times to correlate a specific amount of TDS with the specific amount of income earned by the assessee in a particular year.
In the present case, the counsel for the assessee submitted that the assessable income relating to TDS credit claimed in this year has already been offered to tax in the current year as well as earlier years, therefore there is no discrepancy in the TDS credit claimed while filing the return of income. The counsel for the assessee further submitted that when a particular income is received by the assessee after deduction of TDS and the said TDS has been duly deposited with the Government and the assessee has received the requisite certificate to this effect, then on production of such certificate, assessee becomes entitled to credit of TDS, even if the assessee has not directly offered the said income to tax.
Conclusion- In the case of NCC Maytas JV v. ACIT [A.Y. 2006-07, ITA No. 812 (Hyd.) of 2013, dated 13-9-2013, the ITAT held that a part of TDS cannot be denied on the ground that the corresponding turnover has not been shown in the A.Y. in which credit is being claimed, if income relating to such TDS has already been offered for taxation in an earlier assessment year. In the instant facts, in view of the aforesaid rulings, if the assessee has offered income to tax in either in the current year or any earlier year and TDS has been deducted on the same in the current year at the time of execution of sale deed, credit for the TDS so deducted should be allowed to the assessee in the current year, subject to the assessee producing the necessary supporting to show that corresponding income has been offered in tax either during the current year or any of the earlier previous years.
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