DZ Bank Vs DCIT (International Taxation) (ITAT Mumbai)
Held that in absence of TDS certificate, assessee has to furnish any other evidence to support deduction of tax at source by the payer of income. TDS credit denied for failure to furnish any other supporting evidence.
Facts-
The assessee provided loans to Indian borrowers and received payments from its Indian borrowers towards interest on borrowed amounts, after deduction of TDS. AO disallowed the TDS for which assessee didn’t furnished TDS certificates.
The assessee contended that it only received the net amount, i.e., after deduction of TDS. Thus, TDS credit must be allowed to the assessee, including for items where the assessee could not furnish the TDS certificates.
Conclusion-
Before us, the assessee has submitted that no certificate of tax deduction at source are available with the assessee. Therefore, respectfully following the decision of the Hon’ble Bombay High Court in the case of Yashpal Sahni, for availing credit of TDS, the assessee has to discharge its responsibility of substantiating whether tax was deducted by the payer of income. From the contract agreement also it is evident that the borrower was required to intimate to the ‘DZ Bank AG’ regarding the amount of tax deducted at source and paid to the tax authority.
Held that before us, the assessee has even neither furnished any details of the amount of TDS in respect of interest income, which it has shown if any in its profit and loss account, nor furnished any evidence to support deduction of tax at source by the payer of income. The assessee has not furnished any certified copies of ledger account of assessee in the books of borrower parties so as to reflect the amount credited in the account of the assessee.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
By the orders of the Tribunal in Miscellaneous Applications as listed in table below, these appeals have been recalled for the limited purpose of adjudication of grounds relating to allow credit of tax deducted at source (TDS) by the borrowers on gross interest payment to M/s DZ Bank and consequently fixed for hearing:
