Delhi ITAT Permits Accrued Year TDS Credit in Fresh Order

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) which consists of Shri Saktijit Dey, Judicial Member Shri Pradip Kumar Kedia, Accountant Member has allowed TDS credit to the assessee in the assessment year when the credit accrued subject to conditions that the assessee had not claimed the same in the past years and shall submit an affidavit stating that such credit claimed in Assessment Year 2016-17 shall not be claimed again in any other assessment year in future based on form 26AS under income tax or any other document.

In this matter M/s. Interglobe Entreprises Pvt. Ltd is the assessee, who declared revenue of Rs.1,66,11,872/- for Assessment Year 2016-17 is in question and inter alia claimed credit for TDS amount of Rs.16,61,185/- deducted by the deductor in the following Assessment Year 2017-18.

The assessee claimed credit of TDS in Assessment Year 2016-17 the corresponding income reported in that year and not in the subsequent Assessment Year 2017-18 where the TDS was actually deducted and reflected in the annual information statement generated by the Department in form 26AS.

The assessee had claimed credit of TDS in the AY 2016-17 which was the income reported in that year and not in the subsequent AY 2017-18 where TDS was actually deducted and also echoed in the department’s Annual Information Statement in Form 26AS.

However, the AO has not granted the credit for the TDS in AY 2016-17 for the reason that such credit for TDS is not mirrored in the Form 26AS for AY 2016-17 in question. The party argued that credit for the TDS is available only in the AY 2016-17 when income is declared to have accrued and is included in aggregating of chargeable income.

In this matter, the Tribunal allowed the claim and held that “no positive finding of the Revenue Authorities below is available to show as to whether tax credit for TDS reflected in form number 26AS in Assessment Year 2017-18 has been claimed or otherwise in that AY.

Verification of factual position is necessary to remove the possibility of a double claim. The assessee himself shall be entitled to a credit of TDS as per the income reported in the assessment year 2016-17 provided; (i) the party has not claimed any TDS credit in any other AY; (ii) an affidavit before the Revenue Officers to give an assurance by the assessee that such credit claimed in the assessment year 2016-17 will not be double claimed in any future assessment year on the basis of Form 26AS or any other document letter.

Shri Negesh Kumar, Adv from the assessee side said that The Assessing Officer, after being satisfied, shall grant TDS credit as per the observations made herein above. With these observations, the impugned order of CIT(A) is set aside and restored back in the file of the AO for grant of credit as per law.