Case Law Details
N.C. Rajagopal & Co. Vs DCIT (ITAT Chennai)
The assessee has claimed credit for TDS amounting to Rs. 45,59,855/-, whereas DCIT, CPC has allowed TDS credit for Rs. 33,35,055/-. We find that the assessee has claimed credit for TDS pertains to earlier financial years, because income relating to said TDS has been offered to tax for the impugned assessment years on the basis of cash system of accounting. The assessee had also furnished necessary details of TDS brought forward from earlier financial years in Form ITR-5 filed for impugned assessment year. As per the provisions of section 199 & 200 of the Act, credit for TDS should be allowed when the assessee has offered income relating to said TDS. The assessee claims that income relating to said TDS has been offered to tax for the impugned assessment year. If, the claim of the assessee is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. The fact needs to be verified. Therefore, we set aside the issue to the file of the AO and direct the Assessing Officer to verify the claim of the assessee and in case the AO finds that income relating to said TDS has been offered to tax for the impugned assessment year, then the credit for TDS also needs to be allowed as claimed by the assessee.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), Chennai-2, dated 14.09.2020 and pertains to assessment year 2017-18.
2. The brief facts of the case are that the assessee has filed its return of income for the AY 2017-18 on 07.10.2017 admitting a total income of Rs. 2,94,52,927/-. The return filed by the assessee has been processed u/s. 143(1) of the Income Tax, 1961 (herein after referred to as “the Act”) and determined total income of Rs. 2,97,66,591/- after allowing TDS credit for Rs. 33,35,055/-, as against TDS claimed of Rs. 45,59,855/-. The assessee challenged the assessment order passed by the AO u/s. 143(1) of the Act before the Tribunal and the ITAT vide its order dated 09.03.2022 in ITA No. 817/Chny/2020 disposed of appeal filed by the assessee, however not adjudicated ground nos. 3.1 to 3.4 of grounds of appeal taken by the assessee challenging short credit allowed for TDS. The assessee has filed a miscellaneous petition u/s. 254(2) of the Act, and the Tribunal vide its order dated 30.06.2022 in MA No. 14/Chny/2022 recalled the order of the Tribunal dated 09.03.2022 qua ground nos. 3.1 to 3.4. Therefore, it is relevant to reproduce ground nos. 3.1 to 3.4 of assessee’s appeal for the sake of convenience.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
