The Chennai bench of the Income Tax Appellate Tribunal (ITAT), TDS credit must be permitted when the taxpayer provides the income concerned to the TDS beneath the provisions of the income tax act, 1961.
The taxpayer, N C Rajagopal has claimed TDS credit amounting to Rs. 45,59,855/-, whereas DCIT, CPC has permitted credit for Rs. 33,35,055. The taxpayer has claimed the credit for TDS related to the former fiscal years, as the income concerned with the mentioned TDS would be provided to the tax for the impugned assessment years on the grounds of the cash system of accounting. The taxpayer ruled that the needed information of the TDS purchased forwards through the former fiscal year in Form ITR-5 furnished for the impugned assessment year.
Shri V. Durga Rao, Judicial Member, and Shri G. Manjunatha, Accountant Member see, under the provisions of tax section 199 & 200 of the Act, credit for TDS must be permitted when the taxpayer provides the income for the precise TDS.
For the impugned assessment year, the assessee claims that tax has been paid on the income relating to said TDS. Assessees should be permitted the TDS credit based on their claim, which can include TDS from previous financial years if their claim is accurate.
The fact needs to be verified. Consequently, the issue is set by the Tribunal to the file of the Assessing Officer and the Assessing Officer is directed to verify the claim of the taxpayer and if the A.O. finds that income related to said TDS has been offered for tax for the impugned assessment year, then the TDS credit also needs to be permitted as claimed by the taxpayer, the Tribunal saw.
Shri. I. Dinesh, Advocate appeared for the taxpayer.
| Case | N.C. Rajagopal & Co. vs Deputy Commissioner of Income Tax |
| Appellant by | Shri. I. Dinesh |
| Respondent by | Shri. T.M. Sugunthamala |
| Citation: | ITA No.: 817/Chny/2020 |
| Chennai ITAT | Read Order |
