INCOME TAX ACT, 1961

Section 199

Tax deduction at source - Credit for TDS under section 199 - Non-granting of -

Assessee was in appeal for non-granting of TDS credit contending that though the total income as disclosed by it in its return of income was accepted during the processing of the return of income, but the credit for the corresponding TDS as claimed was not given because the same was not reflected in Form 26AS per the assessment year 2017-18 but were entirely stood included in Form 26AS for the assessment year 2018-19. Held: As per provisions under section 199 (3) and also rule 37BA(3) of the Rules, it was opinied that in this case where the tax has been deducted at source and paid to the Central government by the HA Limited in the assessment year 2018-19 and such TDS relates to the income assessable over the assessment years 2017-18 and 2018-19, the credit has to be given in the proportion in which the income is assessable to tax for the assessment years 2017-18 and 2018-19 respectively. Thus, ends of Justice would be met by remitting matter to AO to verify whether the TDS deducted by HA Limited and reflected in the 26AS for the assessment year 2018-19 relates to the receipt in the hands of the assessee assessable for the assessment years 2017-18 and 2018-19, and if it is so, AO will allow proportionate credit for these 2 years.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2017-18

SUBSCRIBE FOR FULL CONTENT