DCIT Vs Sasken Network Engineering Limited (ITAT Bangalore)
In terms of section 199, Rule 37BA provides that credit for tax deducted at source and paid to the Central Government shall be given for the Assessment Year for which such income is assessable. In case the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportionate in which the income is assessable to tax.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal by the Revenue against the order dated 30.01.2013 of CIT(Appeals)-III, Bengaluru, relating to Assessment Year 2007-08.
2. The facts and circumstances under which the said appeal by the Revenue arises for consideration are the assessee is a company incorporated under the Companies Act, 1956 and engaged inter alia in the business of installation and commissioning services. The assessee filed its return of income (‘Rol’) under section 139(1) of the Income-tax Act, 1961 (Act’) on October 31, 2007 declaring taxable income of Rs 3,05,04,940 on which taxes of Rs 1,02,67,963 were payable. On account of credit for taxes deducted at source (TDS’) amounting to Rs 1,21,26,857 and self assessment tax amounting to Rs 1,60,0000 a refund of Rs 34,58,894 was claimed. The Rol was selected for scrutiny and the assessment was concluded vide assessment order under section 143(3) of the Act dated December 17, 2009 wherein income returned by the assessee in the Rol was accepted by the Deputy Commissioner of Income-tax, Circle 12(3) (A0).
3. During the course of assessment proceedings, the assessee vide letter dated August 17, 2009 had filed additional TDS certificates, amounting to Rs 1,13,86,500 issued to it by Nokia India Private Limited (Nokia India). The said certificates were not filed by it along with the RoI filed since the TDS certificates were received only after the expiry of time prescribed for filing of original as well as revised Rol for AY 2007-08. The Details of the TDS certificates and the credit for TDS claimed by the assessee vide the aforesaid letter were as follows:
