ITAT allows TDS Credit in the Year of Accrual subject to Submission of Affidavit promising No Credit shall be Claimed in Future [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi bench comprising Shri Saktijit Dey, Judicial Member & Shri Pradip Kumar Kedia, Accountant Member has allowed TDS credit to the assessee in the assessment year when the credit accrued subject to conditions that the assessee had not claimed the same in the past years and shall submit an affidavit stating that such credit claimed in Assessment Year 2016-17 shall not be doubly claimed in any other assessment year in future based on form 26AS or any other document.

The assessee,M/s. InterglobeEntreprises Pvt. Ltd., declared an income of Rs.1,66,11,872/- for Assessment Year 2016-17 in question and inter alia claimed credit for TDS amounting to Rs.16,61,185/- deducted by deductor in the subsequent Assessment Year 2017-18. The assessee claimed credit of TDS in Assessment Year 2016-17qua the corresponding income reported in that year and not in the subsequent Assessment Year 2017-18 where the TDS was actually deducted and reflected in the annual information statement generated by the Department in form 26AS. The Assessing Officer however did not grant credit of TDS in Assessment Year 2016-17 reportedly on the premise that such credit is not reflected in form no.26AS for Assessment Year 2016-17 in question.

The assesseecontended that for TDS credit is available in the Assessment Year 2016-17 itself when income has been claimed to have accrued/arisen and included for determination to chargeable income.

Allowing the claim, the Tribunal held that “no positive finding of the Revenue Authorities below is available to show as to whether tax credit for TDS reflected in form No. 26AS in Assessment Year 2017-18 has been claimed or otherwise in that assessment year. A verification of factual position is required to shun the possibility of double claim. The assessee shall be entitled to credit of TDS corresponding to the income reported in the Assessment Year 2016-17 itself provided; (i) the assessee has not claimed any credit of TDS in any other assessment year; (ii) anundertaking/affidavit is placed by the assessee before the Revenue Authorities to lend assurance that such credit claimed in Assessment Year 2016-17 shall not be doubly claimed in any other assessment year in future based on form 26AS or any other document. On being satisfied, the Assessing Officer shall grant the TDS credit in terms of observations made hereinabove. With these observations, the impugned order of the CIT(A) is set aside and restore back to the file of the Assessing Officer for grant of credit in accordance with law.”

Shri Negesh Kumar, Adv appeared for the assessee.

To Read the full text of the Order CLICK HERE

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