| The Tax Publishers2022 TaxPub(DT) 2276 (Del-Trib) INCOME TAX ACT, 1961
Section 197
Where there was discrepancy of sum in total revenue offered to tax by assessee and that reflected in Form 26AS and assessee had claimed to have offered the revenues for tax in previous years and first appellate authority has directed AO to verify the same and revenue did not dispute the fact that in present assessment year, in Form No. 26AS of assessee, assessee was entitled to its credit by way of refund, in spite of not offering any income for tax, arising from profit and loss account.
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Tax deduction at source - Credit of TDS - Revenue offered to tax in earlier years -
AO made various additions including the disputed addition on the basis that it was observed that in Form No. 26AS of the assessee that there was a credit of a sum from C and on same amount TDS @ 10% was deducted under section 194J by C and assessee has claimed the refund on this deducted amount. But, on perusal of profit and loss account of the assessee, it was observed that assessee had not taken this amount as revenue receipt or revenue from operations. AO observed that assessee was maintaining the books of account on mercantile basis. When the assessee received the payment, the amount received was the income of the year during which such amount was received. Thus, whole amount was added in the total income of the assessee.Held: Assessee offered a total revenue in assessment years 2012-13 and 2013-14, which stand accepted by the revenue. In present financial year no income was reflected as per profit and loss account but a sum was mentioned in Form 26AS. Thus, there was discrepancy of sum in total revenue offered to tax by assessee and that reflected in Form 26AS. This difference has been sustained by first appellate authority while being justified in directing AO to verify the Revenue offered to tax in earlier years and on satisfaction, the same is to be allowed. Where assessee had claimed to have offered the revenues for tax in previous years and first appellate authority has directed AO to verify the same and Revenue does not dispute the fact that in present assessment year, in Form No. 26AS of assessee, TDS was made by C, the assessee is entitled to its credit by way of refund, in spite of not offering any income for tax, arising from profit and loss account, in present assessment year.
Relied:Collector, Land Acquisition v. Mst. Katiji & Ors. 1997 taxman.com 1072 (SC) : 1987 TaxPub(DT) 1279 (SC), CIT-I v. M/s. Abbott Agency (2014) 224 taxmann 350 (P&H) : 2014 TaxPub(DT) 3196 (P&H-HC), Dy. CIT, Circle-4(1), New Delhi v. M/s. Lloyd Insulation (India) Ltd. [ITA No.2400/Del/11 and C.O. No.201/Del/11, dt. 9-8-2012] and Escorts Ltd. v. Dy. CIT (2007) 15 SOT 368 (Del) : 2007 TaxPub(DT) 1231 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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