TDS Credit Available in Year Income Reported, Cannot be Deferred to Other Years

DCIT Vs Cicon Engineers Private Limited (ITAT Bangalore)

Introduction: The case of DCIT Vs Cicon Engineers Private Limited (ITAT Bangalore) sheds light on the complex interplay between Tax Deducted at Source (TDS) credit and income reporting under the Income Tax Act, 1961. This article provides a detailed analysis of the legal arguments and outcomes of the case.

Case Background: The appeal by the revenue pertains to the allowance of TDS credit in the assessment year 2017-18 by the CIT(A). The dispute primarily revolves around the treatment of TDS amounts in relation to the reporting of income by the assessee.

Key Arguments:

1. Treatment of TDS on Previous Year Sales: The revenue contested the allowance of TDS credit relating to previous year sales, arguing that TDS and income must align in the same assessment year. The assessee contended that TDS should be credited in the year of deduction, even if the corresponding income was reported in earlier years.

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