ITAT: Accrued Income Eligible for TDS Credit If Not Claimed Earlier

TDS credit on the obtained income would be permitted if the same was not claimed in the former years said by the Delhi bench Income Tax Appellate Tribunal (ITAT). The taxpayer Ujjwal Singh declared an income of Rs.1,01,79,310 and claimed the credit for TDS whose amount of Rs 5,70,516 was deducted through the deductor, KIN Finserv LLP in the preceding Assessment Year 2015-16. The taxpayer claimed credit of TDS in the assessment year 2016-17 on the raised bill dated 1/08/2015; hence, the income obtained was indeed included in the income return in the assessment year 2016-17.

The taxpayer claims, that he notified an income of Rs 5,70,516 as per the invoices on 01.08.2015 in the Assessment Year 2015 -16 which AO refused on the basis that the TDS would not be shown in the new annual information statement in form 26AS generated by the Revenue.

According to the law specified in section r.w. Rule 37BA (3) said that the credit for TDS will get permitted via Assessing Officer in the year when the taxpayer offers the income.

The taxpayer has offered the income in the year of its obtained in Assessment Year 2016-17 and the credit for TDS should get permitted in Assessment Year 2016-17 as claimed according to Section 199 r.w. Rule 37BA (3), the tribunal revealed.

The taxpayer would be authorized to TDS corresponding to the income declared in Assessment Year 2016-17 upon fulfilling the condition that the taxpayer would not claim any credit for TDS before, Assessment Year 2015-16.

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Shri Saktijit Dey, judicial member & Shri Pradip Kumar Kedia, accountant member sides the impugned order of the CIT(A) and reformed the case to the file of the Assessing Officer towards the allotment of credit by the law. Shri Saten Sethi supports the appellant and Shri Abhishek Kumar emerged for the respondent.