Surbhi Anand Vs ACIT (ITAT Agra)
ITAT Agra held that entire TDS deducted on maturity of bond is allowable since assessee has already offered interest income on accrual basis. Accordingly, appeal of the assessee is allowed and TDS credit granted.
Facts- Assessee invested in RBI Bond and in 7.75% taxable Government of India Bonds (non-cumulative option) through M/s HDFC Bank Ltd. The assessee had declared the interest on accrual basis in the returns filed for the earlier years and had deposited her tax liability on such interest income in different Assessment Years whose assessments have been completed under section 143(1). Out of the Interest received on maturity of Rs. 2,40,40,000 during the year (on which TDS has been deducted u/s 193 of the I.T. Act, 1961) the income relatable to the year under consideration of Rs. 92,96,000, declared in the return after reducing the interest accrued stated as above, has been accepted. On the maturity of the said bonds, the RBI credited to proceed including interest of Rs. 2,40,40,000/- on maturity and deducted TDS u/s 193 of the Act amounting to Rs. 24,04,000/-. While processing the return u/s 143 (1) of the Act, the CPC accepted the returned income but disallowed TDS credit of Rs. 24,04,000/-.
