Dhanvir Goyal, Faridabad V. ITO, Faridabad

ITA 384/DEL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6830 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 11-07-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 19-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-I: NEW DELHI BEFORE SHRI P.K.BANSAL, ACCOUNTANT MEMBER ITA NO.:- 384/DEL /2015 ASSESSMENT YEAR: 2012-13 DHANVIR GOYAL H.N. 965, SECTOR-7C FARIDABAD PAN AGSPG0931G VS. ITO WARD-49(3) FARIDABAD (APPELLANT ) (RESPONDENT) O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) DATED 11.12.2014. GROUND NO. 1 SINCE NOT PRESSED DISMISSED AS NOT PRESSED. 2. THE ONLY ISSUE INVOLVED IN THE OTHER GROUND TAKE N BY THE ASSESSEE RELATES TO THE CREDIT TO BE GIVEN TO THE ASSESSEE I N RESPECT OF THE TDS AMOUNTING TO RS. 57128/- WHICH WAS DEDUCTED BY HUDA OUT OF THE PAYMENT OF INTEREST RECEIVED BY THE ASSESSEE. ASSESSEE BY : SHRI K.C. SINGHAL DEPARTMENT BY : SHRI S.K. MISHRA , SR. D R DATE OF HEARING 11 /07 /2016 DATE OF PRONOUNCEMENT 15 /07 /2016 ITA NO. 384/DEL/2015 2 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREF ULLY CONSIDERED THE SAME. I NOTED THAT DURING THE IMPUGNED ASSESSMENT Y EAR THE ASSESSEE RECEIVED ENHANCED COMPENSATION OF RS. 1,56,833/- AN D INTEREST THEREON AMOUNTING TO RS. 5,04,220/- FROM HUDA ON WHICH HUDA HAS DEDUCTED TDS AMOUNTING TO RS. 57,128/-. THE AO IN THE IMPUGN ED ASSESSMENT YEAR TREATED THE SUM OF RS. 5,04,220/- AS THE INCOM E OF THE ASSESEE ON RECEIPT BASIS BUT DID NOT ALLOW THE CREDIT FOR THE TDS TO THE ASSESSEE. 4. THE ASSESSEE MOVED AN APPLICATION U/S 154 FOR THE CREDIT OF THE TDS U/S 199 R.W.R 37BA (3) OF THE ACT WHICH WAS REJE CTED BY THE AO. THE LD. CIT(A) CONFIRMED THE ORDER OF THE AO. THE P ROVISION OF SECTION 145A(B) MANDATES THAT THE INTEREST RECEIVED BY AN A SSESEE ON COMPENSATION OR ON ENHANCED COMPENSATION HAS TO BE ASSESSED IN THE YEAR IN WHICH IT IS RECEIVED UNDER THE HEAD INCOM E FROM OTHER SOURCES IN VIEW OF THE PROVISION OF SECTION 56(2). SECTION 199 OF THE INCOME TAX ACT EMPOWERS T HE BOARD MAY, FOR THE PURPOSES OF GIVING CREDIT IN RESPECT OF TAX DEDUCTED OR TAX PAID IN TERMS OF THE PROVISIONS OF THIS CHAPTER XVII. THE BOARD HAS IN THIS REGARD MADE RULE 37BA (3)(I). THIS CLEARLY SPECIFIED THAT CREDIT FOR TAX DEDUCTED AT SOURCE AND PAID TO THE CENTRAL GOVT. SHALL BE GIVEN FOR THE ASSTT. YEAR F OR WHICH SUCH INCOME IS ASSESSABLE. IN THE IMPUGNED CASE SINCE THE INERTEST RECEIVED FROM HUDA ITA NO. 384/DEL/2015 3 HAS BEEN ASSESSED DURING THE IMPUGNED ASSESSMENT YE AR THEREFORE THE REVENUE IS BOUND TO ALLOW CREDIT TO THE ASSESSEE FO R THE TDS AMOUNTING TO RS. 37,128/- TO THE ASSESEE DURING THE IMPUGNED ASSESSMENT YEAR . NOT ALLOWING THE CREDIT FOR THE TDS IN MY OPINION I S A MISTAKE OF LAW APPARENT ON RECORD. 5. I ACCORDINGLY SET ASIDE THE ORDER OF THE LD . CIT(A) AND DIRECT THE AO TO ALLOW THE CREDIT TO THE ASSESSEE IN RESPECT O F THE TDS AMOUNTING TO RS. 57,128/- AFTER VERIFYING THE INTEREST INCOME FROM THE HUDA IS ASSESSED DURING THE IMPUGNED ASSESSMENT YEAR. 6. IN THE RESULT THE APPEAL FILED BY THE ASSE SSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/07/2016. SD/- (P.K. BANSAL) ACCOUNTANT MEMBER DATED: 15/07/2016 *VEENA * COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI