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| The Tax Publishers2019 TaxPub(DT) 6986 (Pune-Trib) : (2020) 181 ITD 0524 : (2019) 075 ITR (Trib) 0100 INCOME TAX ACT, 1961,
Section 199
Where AO denied benefit of credit for TDS on the ground that the benefit could be given only in the year of deposit of TDS, but income, on which tax was deducted at source, was patently assessable in the year under consideration, therefore, the benefit should also be allowed in the same year, thus, direction was given to allow the benefit of TDS in the year under consideration.
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Tax deduction at source - Credit for TDS under section 199 - Selection of year of assessment for allowability of benefit -
Assessee claimed credit for TDS, which was not appearing in Form No. 26AS. The assessee explained that it raised invoice in March, 2011, but the invoice amount was deposited by party in April, 2011. AO denied benefit of credit for TDS on the ground that benefit could be given only in the year of deposit of TDS. CIT(A) also confirmed the action of the AO. Held: Benefit of credit for TDS is to be given, is governed by sub-rule (3) of rule 37BA, which unequivocally provides through clause (i) that the 'credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable'. It was clear that the benefit of TDS was to be given for the assessment year for which the corresponding income was assessable. Since the income, on which tax was deducted at source, was patently assessable in the year under consideration, therefore, the benefit of credit for the TDS should also be allowed in the same year. Thus, direction was given to allow benefit of credit for TDS to the assessee in the year under consideration.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
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