TDS Credit should be Allowed when Assessee has offered income relating to said TDS: ITAT [Read Order]

The Chennai bench of the Income Tax Appellate Tribunal ( ITAT ) has held that the TDS credit should be allowed when the assessee has offered the income relating to TDS under the provisions of the Income Tax Act, 1961.

The assessee, N C Rajagopal has claimed credit for TDS amounting to Rs. 45,59,855/-, whereas DCIT, CPC has allowed TDS credit for Rs. 33,35,055/-. Theassessee has claimed credit for TDS pertains to earlier financial years, because income relating to said TDS has been offered to tax for the impugned assessment years on the basis of cash system of accounting. The assessee had also furnished necessary details of TDS brought forward from earlier financial years in Form ITR-5 filed for impugned assessment year.

Shri V. Durga Rao, Judicial Member and Shri G. Manjunatha, Accountant Member observed that as per the provisions of section 199 & 200 of the Act, credit for TDS should be allowed when the assessee has offered income relating to said TDS.

“The assessee claims that income relatingto said TDS has been offered to tax for the impugned assessment year. If, the claim of the assessee is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. The fact needs to be verified. Therefore, we set aside the issue to the file of the AO and direct the Assessing Officer to verify the claim of the assessee and in case the AO finds that income relating to said TDS has been offered to tax for the impugned assessment year, then the credit for TDS also needs to be allowed as claimed by the assessee,” the Tribunal observed.

Shri. I. Dinesh, Advocate appeared for the assessee.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates