Relief to Reliance Infrastructure Limited: ITAT directs AO to Grant Credit of TDS of Rs 40.43 Crores [Read Order]

The Mumbai bench of Income Tax Appellate Tribunal (ITAT) directed the assessing officer to grant the credit of Tax deducted at source (TDS) of Rs. 40.43 crores to the Reliance Infrastructure Limited.

M/s. Reliance Infrastructure Limited, the respondent assessee was a company had claimed Tax Deducted at Source (TDS) credit of Rs. 68 Crores in the revised return of income filed and the return was processed under section 143(1)of the Income Tax Act, 1961 wherein the credit for TDS of Rs. 40.43 crores.

The Revenue had appealed against an order for not granting a claim of TDS for the tax deducted by payment made to Adani Electricity Mumbai Ltd. (AEML). They had admitted that the income and TDS credit belongs to Reliance Infrastructure Ltd.

Shri Jitendra Sanghvi, the counsel for the assessee contended for the granting of Tax Deducted at Source credit to the assessee.

Smt. Riddhi Mishra, the counsel for the department contended that the assessee was not entitled to get the TDS credit in which the deductor was not issued any certificate in favour of assessee.

The Bench observed that the deductor had refused to issue a certificate in favour of the assessee due to perceptions and apprehensions and there was no provision or mechanism to enforce such certificate from deductor which lead to denial of credit for TDS. It was also observed that no prescribed form available to make such rectification, leading to legal battles. The two member bench comprising of Amit Shukla (Judicial Member) And Padmavathy S (Accountant Member) directed the assessing officer to grant the Tax deducted at Source (TDS) credit of Rs 40.43 crores to the assessee while dismissing the appeal filed by the revenue.

To Read the full text of the Order CLICK HERE

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