INCOME TAX RULES, 1962

Rule 37BA

Tax deduction at source - TDS credit - Allowability - Year of grant

Assessee filed its return of income declaring income of Rs. 7,12,37,430. In return of income so filed, assessee claimed credit for TDS of Rs. 26,21,695 which was rejected as it was not reflected in Form 26AS. Against intimation issued under section 143(1), assessee moved rectification application, which was rejected. Against said rejection order, assessee filed appeal before CIT(A). However, appeal filed by assessee was dismissed. Hence this appeal. Held: On a perusal of Rule 37BA, it was observed that TDS credit had to be granted in year in which corresponding income was taxable. As per accounting principle followed by assessee, income relating to TDS was taxable in assessment year 2016-17. In fact, assessee offered amount to tax in assessment year 2016-17. That being factual position emerging on record, assessee must get credit for TDS amount of Rs. 26,61,695 in impugned assessment year. More so, when assessee claimed that TDS credit for amount in dispute had not been granted in assessment year 2017-18. AO was directed to grant credit for TDS of Rs. 26,61,695 to assessee after factually verifying that credit for such TDS had not been granted to assessee in assessment year 2017-18.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2016-17

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