Ashoka Developers & Builders Ltd Vs ACIT (ITAT Hyderabad)
M/s. Ashoka Developers & Builders Ltd. appealed against the order of the CIT(A)-11, Hyderabad dated 03.01.2026 concerning denial of TDS credit for A.Y. 2023-24. The assessee, engaged in construction and civil works and following the percentage completion method, filed its return declaring total income of ₹2,43,21,630 and claimed TDS credit of ₹67,37,722. On processing under Section 143(1), CPC allowed TDS credit of ₹36,18,694 and disallowed ₹31,19,028. The assessee’s subsequent rectification application under Section 154 was rejected, and the CIT(A) upheld the restriction.
Before the ITAT, the assessee submitted that the TDS claim was supported by Form 26AS and that the percentage completion method resulted in timing differences between income recognition and TDS reflected in the tax statement. It also relied on acceptance of its TDS claims in earlier and subsequent assessment years and invoked the principle of consistency. The Department argued that the assessee had failed to reconcile the TDS claimed with the corresponding income offered to tax and relied on Section 199 and Rule 37BA.
The CIT(A) observed that the assessee’s TDS schedule corresponded to gross receipts of ₹28,49,82,700, whereas receipts admitted in the return were ₹15,59,16,283. It held that TDS credit was required to correspond with income assessable in the relevant year and that, where income was assessable over multiple years, TDS credit was required to be distributed proportionately. The CIT(A) further found that the assessee had not furnished a verification-ready deductor-wise and year-wise reconciliation establishing that the disputed TDS related to income already offered to tax or would not result in double credit.
