TDS Credit is allowable if it was not claimed in Subsequent Year: ITAT [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT), has held that TDS credit was allowed if it was not claimed in subsequent year.

The assesee alleged against the order confirming the disallowance of Rs. 41,440/- on the delayed payment of Employee's Contribution to Provident Fund (PF) and Rs.14,405/- being Employee's State Insurance Corporation (ESIC) aggregating to Rs.55,845/- under section 36(1) (va)r.w. section 2(24)(x) of the Income Tax Act, 1961. The Assessing Officer (AO) disallowed TDS credit of Rs. 7,84,476/-.It was contended that TDS credit of Rs. 7,84,476/- was not claimed by the Appellant in subsequent years also; hence, denial of TDS credit is not justified.

The revenue stated that TDS credit claimed corresponding to the income in preceding years, and the same appearing in form No. 26AS of the year under consideration, was not entitled for credit of TDS to that extent.

The Tribunal considered the case of Kalpesh Synthetic Pvt. Ltd. v. DCIT, CPC Bengaluru which was similar fact of this case and held that disallowance of deduction u/s 36(1)(va) is not permitted in the proceedings u/s 143(1) of the Act. It was observed that if the income is credited for relevant assessment year then TDS credit has to be allowed even if TDS credit was appearing in Form No. 26AS in next assessment year. 

In light of the case of M/s Stock Holding Corporation India Ltd. v. DCIT, The Coram consist of Shri Kuldip Singh JM and Shri Om Prakash Kant AM has held that if assessee was not eligible for credit in the year under consideration then credit for the same should be allowed in the year in which tax has been deducted by the deductor. The appeal filed by the assessee was allowed for statistical purposes.

The appellant was represented by Mr. Jitendra Jain & Mr. Ravikant Pathak and the respondent was represented by Mr. C.T. Mathews.

To Read the full text of the Order CLICK HERE

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