The Income Tax Appellate Tribunal (ITAT), Delhi bench has held that TDS credit shall be given to the deductee for the assessment year for which such income is assessable under the Income Tax Act, 1961.
The assessee, M/s Archana Airways Ltd, acquired the right to received income of Rs. 65,00,000/-after the passing of judgment dated 15/11/2016 by the Hon’ble High Court and the same was subjected to tax in AY 2017-18.
The assessee has received the interest only after passing of the order by the Hon’ble High Court on 15/11/2016 and the assessee has offered the said amount for taxation in the Assessment Year 2016-17 & 2017-18.
As per Section 5 of the Income Tax Act, the total income of the assessee in any previous year in case of resident includes all income from whatever sources derived which are received or deem to be received in the taxable territory of India.
A bench of Dr. B. R. R. Kumar, Accountant Member and Sh. Yogesh Kumar U.S., Judicial Member observed that there cannot be taxation for the same amount in the year under consideration i.e. Assessment Year 2013-14, which amounts to double taxation.
Deleting the addition, the Tribunal also found that regarding the TDS credit, “the assessee offered the subject income for taxation in Assessment 2016-17 & 2017-18. As per Section 199 of the I.T Act, credit for tax deduction at source shall be given to the deductee for the assessment year for which such income is assessable. Therefore, with the above observations the Ground No. 2 deserves to be partly allowed and the assessee is entitled to get the TDS Credit as per Section 199 of the Income Tax Act. Order accordingly.”
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