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OSD, Coke (Consortium) Pvt. Ltd. Vs. Assessing Officer, Kolkata A.O. - (Income Tax Appellate Tribunal) (05 Mar 2024)

Assessee is eligible for its TDS only in the year where the income is declared

MANU/IK/0091/2024

Direct Taxation

The brief fact of the case is that, the assessment was completed under Section 143(3) of the Income Tax Act, 1961. The TDS amount of Rs. 14,63,516 was not credited by the AO in assessment proceedings. The assessee filed a rectification petition under Section 154 of the Act for allowing the TDS during the impugned assessment year. The assessee placed that the related turnover of the TDS was duly declared in the books and the return during the impugned assessment year. But the parties have taken this bill/payment in the next assessment year i.e. for AY 2015-16. The TDS was also credited for AY 2015-16 in 26AS but the assessee has not claimed this TDS whereas the assessee claimed in the year wherein the income has been declared.

Learned AO had not accepted the assessee's submission and upheld his non-allowability of TDS as per the order under Section 143(3)/ 154 of the Act. Being aggrieved, the assessee filed an appeal before learned CIT(A). Learned CIT(A) had upheld views of Assessing Officer.

The assessee is eligible for its TDS only in the year where the income is declared. In the assessment year i.e. AY 2015-16 the assessee had not credited its income and not even claimed the TDS. The assessee has no control about the debiting of the amount by the party in their books. But the assessee can only follow the law as directed under Section 199 of the Act read with Rule 37BA(3)(i) of the Income Tax Rules, 1962. The TDS is to be given for the assessment year for which the corresponding income assessable.

The assessee is eligible for the TDS in the year he claimed i.e. for the impugned assessment year. But present Tribunal are not able to verify the TDS related to this income during the impugned assessment year. Present Tribunal direct learned AO to verify the TDS. Accordingly, present Tribunal remit back the matter to the file of learned AO for further verification only in the limited grounds.

Tags : ASSESSMENT   TDS   ELIGIBILITY  

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