INCOME TAX ACT, 1961

Section 206C

Tax collection at source - Credit for TCS - Assessee by sub-licencee - Main licencee agreed not to claim credit of TCS

AO did not allow assessee's claim regarding credit of TCS holding that the tax was collected at source in the name of main licensee with different PAN and no credit of TCS had been shown in Form No. 26AS of the assessee. Assessee submitted that he entered into an agreement with the main licensee, wherein he declared that filing of tax return was responsibility of the assessee and he also agreed that he would not claim any TCS in his personal tax return. He further submitted that the complete purchase and sale of main licensee was considered in case of sub-licensee, i.e., assessee, therefore, the credit for TCS should also be granted to the sub-licensee as no claim of such TCS was made by the main licensee in his individual return of income. Held: It was not disputed that the complete purchase and sale of main licensee was considered in case of sub-licensee, i.e., assessee, thus, the credit for TCS should also be granted to the assessee subject to the condition that no claim of such TCS was made by the main licensee in his individual return of income. Further, on perusal of agreement entered into between the assessee and the main licensee, it was found that the main licensee declared that filing of tax return was responsibility of the assessee and he also agreed that he would not claim any TCS in his personal tax return. However, such fact was required to be verified at the end of AO. Accordingly, the matter was remanded to the AO to verify as to whether TCS had been claimed by the main licensee in his individual return of income or not.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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