• Notification Date: 29-11-2022
• Notification No: N/A

ITAT rules to credit TDS when Assessee has offered Income relating to the TDS

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS credit should be allowed when the assessee has offered the income relating to TDS. The new ruling has been held under the provisions of the Income Tax Act, 1961.  

The assessee, N C Rajagopal has claimed credit for TDS amounting to Rs. 45,59,855, whereas DCIT, CPC has allowed TDS credit for Rs. 33,35,055. The assessee has claimed credit for TDS related to the earlier financial years. He had made the demand since the income relating to said TDS has been offered to tax for the impugned assessment years on the basis of cash system of accounting. The assessee had also presented necessary details of TDS in support of his demand, brought forward from earlier financial years in Form ITR-5 filed for impugned assessment year. 

According to Shri V. Durga Rao, Judicial Member and Shri G. Manjunatha, Accountant Member, under the provisions of section 199 & 200 of the Act, credit for TDS should be allowed when the assessee has offered income relating to that particular TDS.  

The assessee had claimed that income relating to said TDS has been offered to tax for the impugned assessment year. The Tribunal observed that if his claim is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. Hence, the fact needed to be verified and the Tribunal set aside the issue to the file of the AO and direct the Assessing Officer to verify the claim of the assessee.  

In case, the AO finds that income relating to said TDS has been offered to tax for the impugned assessment year, then the assessee’s claim will be held valid and credit for TDS will be allowed as claimed by the assessee.  

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS credit should be allowed when the assessee has offered the income relating to TDS. The new ruling has been held under the provisions of the Income Tax Act, 1961.  

The assessee, N C Rajagopal has claimed credit for TDS amounting to Rs. 45,59,855, whereas DCIT, CPC has allowed TDS credit for Rs. 33,35,055. The assessee has claimed credit for TDS related to the earlier financial years. He had made the demand since the income relating to said TDS has been offered to tax for the impugned assessment years on the basis of cash system of accounting. The assessee had also presented necessary details of TDS in support of his demand, brought forward from earlier financial years in Form ITR-5 filed for impugned assessment year. 

According to Shri V. Durga Rao, Judicial Member and Shri G. Manjunatha, Accountant Member, under the provisions of section 199 & 200 of the Act, credit for TDS should be allowed when the assessee has offered income relating to that particular TDS.  

The assessee had claimed that income relating to said TDS has been offered to tax for the impugned assessment year. The Tribunal observed that if his claim is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. Hence, the fact needed to be verified and the Tribunal set aside the issue to the file of the AO and direct the Assessing Officer to verify the claim of the assessee.  

In case, the AO finds that income relating to said TDS has been offered to tax for the impugned assessment year, then the assessee’s claim will be held valid and credit for TDS will be allowed as claimed by the assessee.  

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS credit should be allowed when the assessee has offered the income relating to TDS. The new ruling has been held under the provisions of the Income Tax Act, 1961.  

The assessee, N C Rajagopal has claimed credit for TDS amounting to Rs. 45,59,855, whereas DCIT, CPC has allowed TDS credit for Rs. 33,35,055. The assessee has claimed credit for TDS related to the earlier financial years. He had made the demand since the income relating to said TDS has been offered to tax for the impugned assessment years on the basis of cash system of accounting. The assessee had also presented necessary details of TDS in support of his demand, brought forward from earlier financial years in Form ITR-5 filed for impugned assessment year. 

According to Shri V. Durga Rao, Judicial Member and Shri G. Manjunatha, Accountant Member, under the provisions of section 199 & 200 of the Act, credit for TDS should be allowed when the assessee has offered income relating to that particular TDS.  

The assessee had claimed that income relating to said TDS has been offered to tax for the impugned assessment year. The Tribunal observed that if his claim is correct then the credit for TDS should be allowed on the basis of claim of the assessee including TDS brought forward from earlier financial years. Hence, the fact needed to be verified and the Tribunal set aside the issue to the file of the AO and direct the Assessing Officer to verify the claim of the assessee.  

In case, the AO finds that income relating to said TDS has been offered to tax for the impugned assessment year, then the assessee’s claim will be held valid and credit for TDS will be allowed as claimed by the assessee.