Mahesh Chandra Bansal Vs ITO (ITAT Jaipur)
The ITAT Jaipur allowed the assessee’s appeal concerning denial of TDS credit of ₹19,215 on salary for January and February 2012. The assessee had filed the return for AY 2012-13 including salary for those months, but the Assessing Officer denied TDS credit on the ground that the salary was received and TDS deducted in May 2012, with the deduction reflected in Form 26AS for AY 2013-14. The CIT(A) upheld the Assessing Officer’s view. The Tribunal noted that the assessee had returned the salary for January and February 2012 in AY 2012-13 and referred to Section 199 of the Income-tax Act read with Rule 37BA(3) of the Income-tax Rules, 1962, which provides that TDS credit is to be given for the assessment year in which the related income is assessable. Holding that the salary income had been returned in AY 2012-13, the Tribunal directed the Assessing Officer to grant TDS credit of ₹19,215 relating to the salary for January and February 2012 and allowed the appeal.
Ratio. Under section 199 read with Rule 37BA(3)(i), credit for tax deducted at source is to be allowed in the assessment year in which the corresponding income is assessable. Therefore, TDS credit cannot be denied merely because the tax was deducted and reflected in Form 26AS in a subsequent financial year, if the related income has already been offered to tax in the earlier assessment year.
Comments are closed.