Case Law Details
Anup Rajendra Tapadia Vs DCIT (ITAT Pune)
ITAT Pune held that credit for TDS is available in the year in which income is reported, credit of TDS cannot be deferred on the basis of reporting by the deductor.
Facts- The issue is that the appellant is in receipt of income from rent & maintenance from his tenant M/s Bosch Limited, and such rental income is offered to tax with corresponding claim of TDS made the reagainst by the deductor tenant. However, the tenant after deducting the TDS on 31/03/2020 from the amount of rent & maintenance payable to the appellant has inadvertently reported the same as pertaining to subsequent year AY 2021-22 by filing quarterly TDS return in Form 26Q, which resulted into short credit for the impugned AY under adjudication.
Conclusion- Held that the credit for tax deducted and paid to the Central Government shall be allowed to the deductee‑ assessee for the assessment year for which such income is assessable or assessed. Therefore, we find force in the contention of the appellant that, the TDS credit is available in the assessment year where the corresponding income has been offered to tax by the assessee, and as such the TDS credit cannot be postponed to a different assessment year on the basis of reporting by the deductor, when the accrued income from such transaction has been reported in the present impugned AY.
FULL TEXT OF THE ORDER OF ITAT PUNE
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