DAYA RAM POONIA, Jaipur V. ITO, Jaipur

ITA 492/JPR/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2141 (ITAT-JAIPUR)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI DCIT DR DHK
• Section: 143(3); 244A

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 492 & 493/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 AND 2012-13 SHRI DAYA RAM POONIA A-2, BASANT MARG, BANIPARK, JAIPUR CUKE VS. THE ITO WARD- 3(2), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ADJPP 6187 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI S.L. JAIN, ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY: SMT. POONAM RAI, DCIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01/03/2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 19/04/2017 VKNS'K@ ORDER PER BHAGCHAND, AM BOTH THESE APPEALS HAVE BEEN FILED BY THE ASSESSEE AGAINST TWO SEPARATE ORDERS OF THE LD. CIT(A)-1 , JAIPUR DATE D 03-02-2016 FOR THE ASSESSMENT YEARS 2011-12 & 2012-13 RAISING FOLLOWI NG GROUNDS OF APPEAL. ITA NO. 492/JP/2016 A.Y. 2011-12 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN NOT GIVING CREDIT OF TDS AMOUNT OF RS. 2,16,481/- U/S 199 OF T HE ACT ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 2 WHICH WAS DEDUCTED IN THE NAME OF APPELLANT BEING C O-OWNER OF PROPERTY. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AND F ACTS IN WRONGLY REDUCE THE TOTAL TDS CREDIT WHILE CBDT CLAR IFIED THAT THE ENTIRE TDS BENEFIT (IN CASE OF CO-OWNER) W AS TO BE GIVEN THE PERSON IN WHOSE NAME THE TDS WAS DEDUCTED . HENCE, ORDER IS BASED ON CONJECTURES AND SURMISES. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AND FA CTS AND DID NOT DEAL WITH THE AFFIDAVIT / DECLARATION AND RETUR N FILED BY THE CO-OWNER AS WELL AS CONTEST ARE NOT DISPUTED. T HE SAME ISSUE WAS ALSO RAISED IN ASSESSMENT YEAR 2006-07 AN D THE SAME WAS NOT ALLOWED IN APPEAL. ITA NO. 493/JP/2016 A.Y. 2012-13 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN NOT GIVING CREDIT OF TDS AMOUNT OF RS. 2,41,855/- U/S 199 OF T HE ACT WHICH WAS DEDUCTED IN THE NAME OF APPELLANT BEING C O-OWNER OF PROPERTY. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AND F ACTS IN WRONGLY REDUCE THE TOTAL TDS CREDIT WHILE CBDT CLAR IFIED THAT THE ENTIRE TDS BENEFIT (IN CASE OF CO-OWNER) W AS TO BE GIVEN THE PERSON IN WHOSE NAME THE TDS WAS DEDUCTED . HENCE, ORDER IS BASED ON CONJECTURES AND SURMISES. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AND FA CTS AND DID NOT DEAL WITH THE AFFIDAVIT / DECLARATION AND RETUR N FILED BY THE CO-OWNER AS WELL AS CONTEST ARE NOT DISPUTED. T HE SAME ISSUE WAS ALSO RAISED IN ASSESSMENT YEAR 2006-07 AN D THE SAME WAS NOT ALLOWED IN APPEAL. ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 3 2.1 APROPOS GROUND NO. 1 TO 3 OF THE ASSESSEE FOR T HE ASSESSMENT YEAR 2011-12, THE FACTS AS EMERGES FROM THE ORDER OF THE LD. CIT(A) IS AS UNDER:- 3.1.2. DETERMINATION (I) I HAVE CAREFULLY PERUSED THE SUBMISSIONS OF T HE APPELLANT, ASSESSMENT ORDER AND THE MATERIAL PLACED ON RECORD. THE BRIEF FACTS OF THE CASE ARE THAT THE AP PELLANT FILED ITS RETURN OF INCOME FOR THE A.Y. 2011-12 DECLARING TOTAL INCOME OF RS. 8,94,060/- WHICH WAS ASSESSED AT THE SAME INCOME U/S 143(3) OF THE ACT ON 31-01-2014. IN ITS RETURN OF INCOME, THE APPELLANT CLAIMED TDS OF RS. 2,38,133/- WHEREAS THE AO ALLOWED CREDIT FOR TDS AMOUNT OF RS. 12,533/- ONLY. (II) DURING THE APPELLATE PROCEEDINGS, IT WAS THE CONTENTION OF THE APPELLANT THAT IT WAS ONE OF THE CO-OWNER OF THE PROPERTY SITUATED AT RAMCHANDRA PURA, WHICH OWN ED BY 19 PERSONS AND THE SAME WAS LET OUT AS GODOWNS TO M /S. JICS LOGISTICS LTD. AND M/S. OM TELECOM LOGISTICS ( P) LTD. THE TOTAL RENT OR THE YEAR WAS RS. 24,78,631/-. DUR ING THE YEAR UNDER CONSIDERATION, THE APPELLANT CREDITED FU LL AMOUNT OF THE PROPORTIONATE RENT (GROSS AMOUNT) IN THE ACC OUNT OF THE CO-OWNERS WITHOUT DEDUCTION OF ANY TAX AND THEY HAD ALSO SHOWN IT IN THEIR RETURN OF INCOME AND NOBODY CLAIM ED TDS IN HIS/ HER RETURN OF INCOME. HENCE, THE APPELLANT WAS AUTHORIZIED TO RECEIVE OR CLAIM THE WHOLE TAX BECAU SE THEY HAD PAID THE TAXES SO LIABLE ON THIS RENT. (III) IT WAS FURTHER SUBMITTED THAT FOR THE ASSESSM ENT YEAR 2006-07, ON THE SAME ISSUE, THE AO DISALLOWED THE CLAIM OF TDS PROPORTIONATELY WHICH WAS ALLOWED BY T HE LD. CIT(A). I HAVE GONE THROUGH THE ORDER OF THE LD. CI T(A) IN ITA NO. 469/11-12 FOR THE ASSESSMENT YEAR 2006-07 V ERY CAREFULLY. IT MAY BE MENTIONED THAT THE FACTS OF TH AT CASE ARE DISTINGUISHABLE FROM THE FACTS OF THE INSTANT CASE UNDER ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 4 CONSIDERATION AS IN THAT THE LD. CIT(A) QUASHED THE ASSESSMENT ITSELF AS THERE WAS NO ESCAPEMENT OF INC OME. THUS THE SAID DECISION OF LD. CIT(A) IS OF NO HELP TO THE APPELLANT. (IV) IT IS SEEN FROM THE ASSESSMENT ORDER THAT THE AO IN VIEW OF THE PROVISION OF SECTION 199 OF THE ACT HAS ALLOWED ONLY PROPORTIONATE CREDITS OF TDS RELATING TO THE RENTAL INCOME PERTAINING TO THE APPELLANT. IT WOULD BE APPROPRIATE TO REPRODUCE HERE THE PROVISIONS OF SEC TION 199(1) AS UNDER:- [CREDIT FOR TAX DEDUCTED 199 (1) ANY DEDUCTION MADE IN ACCORDANCE WITH THE FOREGOING PROVISIONS OF THIS CHAPTER AND PAID TO THE CENTRAL GOVT. SHALL BE TREATED AS PAYMENT OF TAX ON BEHALF OF THE PERSON FROM WHOSE INCOME THE DEDUCTION WAS MADE, OR OF THE OWNER OF THE SECURITY, OR OF THE OW NER OF PROPERTY OR OF THE UNIT-HOLDER, OR OF THE SHAREH OLDER, AS THE CASE MAY BE. (IV) IT MAY BE MENTIONED THAT BY THE IT (6 TH AMENDMENT) RULES, 2009, W.E.F. 01-04-2009 RULE 37BA RELATING TO CREDIT FOR TAX DEDUCTED AT SOURCE FOR T HE PURPOSE OF SECTION 199 HAS BEEN INSERTED WHICH IS PRODUCED AS UNDER:- CREDIT FOR TAX DEDUCTED AT SOURCE FOR THE PURPOSE O F SECTION 199. 37BA. (1) CREDIT FOR TAX DEDUCTED AT OUSRCE AND P AID TO THE CENTRAL GOVT. IN ACCORDANCE WITH THE PROVISI ONS OF CHAPTER XVII, SHALL BE GIVEN TO THE PERSON TO WHOM PAYMENT HAS BEEN MADE OR CREDIT HAS BEEN GIVEN (HEREINAFTER REFERRED TO AS DEDUCTEE) ON THE BASIS OF INFORMATION RELATIN G TO DEDUCTION OF TAX FURNISHED BY THE DEDUCTOR TO THE I NCOME-TAX AUTHORITY OR THE PERSON AUTHORIZED BY SUCH AUTHORIT Y. (2) (I) IF THE INCOME ON WHICH TAX HAS BEEN DEDUCTE D AT SOURCE IS ASSESSABLE IN THE HANDS OF A PERSON OTHER THAN THE ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 5 DEDUCTEE, CREDIT FOR TAX DEDUCTED AT SOURCE SHALL B E GIVEN TO THE OTHER PERSON IN CASES WHERE. (A) THE INCOME OF THE DEDUCTEE IS INCLUDED IN THE TOTAL INCOME OF ANOTHER PERSON UNDER THE PROVISIONS OF SECTION 60, SECTION 61, SECTION 64, SECTION 93 OR S ECTION 94 (B) THE INCOME OF A DEDUCTEE BEING AN ASSOCIATION OF PERSON OR A TRUST IS ASSESSABLE IN THE HANDS OF MEMBERS OF THE ASSOCIATION OF PERSONS, OR IN THE HANDS OF TRUS TEE, AS THE CASE MAY BE THE INCOME FROM AN ASSET HELD IN THE NAME OF A DEDUCTEE, BEING A PARTNER OF A FIRM OR A KARTA OF A HINDU UNDIVIDED FAMILY, IS ASSESSABLE AS THE INCOME OF TH E FIRM, OR HINDU UNDIVIDED FAMILY, AS THE CASE MAY BE; (D) THE INCOME FROM A PROPERTY, DEPOSIT, SECURITY, UNIT OR SHARE HELD IN THE NAME OF A DDUCTEE IS OWNE D JOINTLY BY THE DEDUCTE AND OTHER PERSONS AND THE INCOME IS ASSESSABLE IN THEIR HANDS IN THE SAME PROPORTION AS THEIR OWNERSHIP OF THE ASSET PROVIDED THAT THE DEDUCTEE FILES A DECLARATION WITH IN THE DEDUCTOR AND THE DEDUCTOR REPORTS THE TAX DEDUC TION IN THE NAME OF THE OTHER PERSON IN THE INFORMATION RELATIN G TO DEDUCTION OF TAX REFERRED TO IN SUB-RULE (1). (II) THE DECLARATION FILED BY THE DEDUCTEE UNDER CLAUSE (I) SHALL CONTAIN THE NAME, ADDRESS, PERMANE NT ACCOUNTANT NUMBER OF THE PERSON TO WHOM CREDIT IS T O BE GIVEN, PAYMENT OR CREDIT IN RELATION TO WHICH CREDI T IS TOBE GIVEN AND REASONS FOR GIVING CREDIT TO SUCH PERSON. (III) THE DEDUCTOR SHALL ISSUE THE CERTIFICATE FOR DEDUCTION OF TAX AT SOURCE IN THE NAME OF THE PERSO N IN WHOSE NAME CREDIT IS SHOWN IN THE INFORMATION RELATING TO DEDUCTION OF TAX REFERRED TO SUB RULE (1) AND SHALL KEEP THE DECLARATION IN HIS SAFE CUSTODY. ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 6 3(I) CREDIT FRO TAX DEDUCTED AT SOURCE AND PAID TO THE CENTRAL GOVT. SHALL BE GIVEN FOR THE ASSESSMENT YEA R FOR WHICH SUCH INCOME IS ASSESSABLE (II) WHERE TAX HAS BEEN DEDUCTED AT SOURCE AND PAID TO THE CENTRAL GOVT. AND THE INCOME IS ASSESSABLE O VER A NUMBER OF YEARS, CREDIT FOR TAX DEDUCTED AT SOURCE SHALL BE ALLOWED ACROSS THOSE YEARS IN THE SAME PROPORTION I N WHICH THE INCOME IS ASSESSABLE TO TAX. 4. CREDIT FOR TAX DEDUCTED AT SOURCE AND PAID TO TH E ACCOUNT OF THE CENTRAL GOVT. SHALL BE GRANTED ON TH E BASIS OF :- (I) THE INFORMATION RELATING TO DEDUCTION OF TAX FURNISHED BY THE DEDUCTOR TO THE INCOME-TAX AUTHORI TY OR THE PERSON AUTHORIZED BY SUCH AUTHORITY AND (II) THE INFORMATION IN THE RETURN OF INCOME IN RESPECT OF THE CLAIM FOR THE CREDIT, SUBJECT TO VE RIFICATION IN ACCORDANCE WITH THE RISK MANAGEMENT STRATEGY FORMUL ATED BY THE BOARD FROM TIME TO TIME] (VI) THEREFORE, AS PER SUB-RULE 2 OF RULE 37BA, THE CREDIT FOR THE TDS IS TO BE ALLOWED TO THE PERSON IN WHOSE HANDS THE CORRESPONDING INCOME IS TO BE TAXED AND NOT TO THE DEDUCTEE. THE ABOVE RULE HAS PRESCRIBED PROCEDURE F OR CLAIMING TDS CREDIT BY SUCH OTHER PERSON. (VII) HENCE, IN VIEW OF THE SECTION 199(1) R.W. RUL E 37BA, IT IS HELD THAT THE AO WAS JUSTIFIED IN RESTRICTING THE TDS CREDIT CORRESPONDING TO RENTAL INCOME OWNED BY THE APPELLANT. 2.2 DURING THE COURSE OF HEARING, THE LD. AR OF THE ASSESSEE MAINLY PRAYED THAT THE LD. CIT(A) HAS ERRED IN NOT GIVING THE CREDIT OF TDS ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 7 AMOUNT OF RS. 2,16,481/- U/S 199 OF THE ACT WHICH W AS DEDUCTED IN THE NAME OF ASSESSEE BEING CO-OWNER OF THE PROPERTY. 2.3 THE LD. DR RELIED ON THE ORDERS OF THE LOWER AU THORITIES. 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NOTED THAT THE AO DURING THE ASSESSMENT PROCEEDINGS OBSERVED THAT THE ASSESSEE HAD SHOWN IN COME FROM SALARY, REMUNERATION & INTEREST FROM PARTNERSHIP FIRM & AOP AND ALSO INCOME FROM OTHER SOURCES. THE AO FOUND THAT THE ASSESSEE HAD DEPOSITED TOTAL CASH OF RS. 35,25,000/-IN HIS SAVING BANK ACCOUNT A S HAD BEEN FOUND IN THE AIR INFORMATION. IN RESPONSE TO THE SAME, THE A SSESSEE SUBMITTED THAT HE HAD RECEIVED CASH FROM HIS AOP M/S. POONIA WINES , REWARI ON VARIOUS DATES WHICH WERE DEPOSITED IN HIS SAVING BA NK ACCOUNT. IN SUPPORT OF HIS CLAIM, CONFIRMATION FROM POONIA WINES HAD AL SO BEEN FILED. THE AO ON EXAMINATION OF THE DETAILS FURNISHED BY THE A SSESSEE IN RESPECT OF INCOME FROM HOUSE PROPERTY NOTICED THAT THE TOTAL R ENT RECEIVED BY THE ASSESSEE WERE RS. 24,78,675/- ON WHICH TDS OF RS. 2 ,38,312/- DEDUCTED BY THE TENANT WAS ALSO CLAIMED BY THE ASSESSEE IN H IS RETURN. THE AO ON VERIFYING THE RENT RECEIVED SHOWN BY THE ASSESSEE I N HIS RETURN OF INCOME FOUND THAT HE HAS DECLARED RENT RECEIPT OF RS.1,30, 449/- ONLY. TO THIS ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 8 EFFECT, A SHOWCAUSE LETTER WAS ISSUED BY THE AO TO THE ASSESSEE VIDE LETTER NO .2188 ON 22-01-2014 AS UNDER:- PLEASE REFER TO ABOVE. ON EXAMINATION OF THE DETA ILS FURNISHED IN RESPECT OF YOUR INCOME FOR A.Y. 2011- 12, THE FOLLOWING THINGS HAVE BEEN NOTICED WHICH IS PROPOSE D TO BE TREATED IN THE MANNER MENTIONED THEREIN. DURING THE YEAR, YOU HAVE DECLARED INCOME FROM HOUSE PROPERTY AT RS. 1,30,449/-. ON EXAMINATION OF YOUR RENTAL INCOME, IT IS NOTICED THAT YOU HAVE CLAIMED TDS MADE BY JICS LOGISTIC LIMITED AMOUNTING TO RS. 2,28,508/ - U/S 194-I. HOWEVER, THE INCOME ON WHICH TDS WAS NOT OFF ERED FOR TAXATION BY YOU. THE TOTAL RENT RECEIVED ON WHI CH TDS MADE BY THE JICS LTD. IS RS. 2,85,062/-. AS AGAINST THIS PROPERTY, YOU HAVE DISCLOSED RENTAL INCOME OF RS. 1 ,30,449/- BEING 1/9 TH SHARE STATING THAT THE PROPERTY LET OUT BELONGED T O 19 PERSONS INCLUDING YOURSELF. IN THESE SITUATION, AS PER PROVISIONS OF SECTION 199(1) OF I.T. ACT, TDS CLAIM IS ALLOWABLE IN PROPORTION TO INCOME SHOWN BY YOU ONLY . THUS THE ALLOWABLE TDS CREDIT TO YOU WILL BE RS. 12,027/ - AND THE BALANCE TDS CLAIMED BY YOU AT RS. 2,16,481/- IS PRO POSED TO BE DISALLOWED. CONCLUSIVELY, THE AO OBSERVED THAT AS PER PROVISION S OF SECTION 199(1) OF THE ACT, IT HAS BEEN ESTABLISHED ON RECORD THAT THE ASSESSEE HAS MADE EXCESS CLAIM IN HIS RETURN OF INCOME WHICH IS NOT A LLOWABLE. ACCORDING TO THE AO, THE ASSESSEE IS ELIGIBLE FOR TDS IN PROPORT ION TO HIS SHARE OF RENTAL INCOME DECLARED ONLY WHICH COMES TO RS. 12,5 33/- (RS. 2,38,133/19). THUS THE EXCESS TDS CLAIMED AND ALLOW ED EARLIER AMOUNTING TO RS. 2,25,600/- (RS. 2,38133 MINUS RS. 12,533) PLUS INTEREST ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 9 GRANTED U/S 244A AMOUNTING TO RS. 5,063/- TOTALING TO RS. 2,30,663/- IS WITHDRAWN. IN SHORT, THE AO THUS DISALLOWED TDS CLA IM OF THE ASSESSEE AMOUNTING TO RS. 2,16,481/- WHICH HAS BEEN CONFIRME D BY THE LD. CIT(A) IN FIRST APPEAL. IN APPEAL BEFORE THE BENCH, THE LD . AR OF THE ASSESSEE FILED THE AFFIDAVIT, INCOME TAX RETURNS ALONGWITH COMPUTA TION OF INCOME AND CONFIRMATION OF ACCOUNTS OF ALL 18 CO-OWNERS OF THE PROPERTY. IT IS ALSO NOTICED FROM THE AFFIDAVIT/ DECLARATION OF 18 CO-OW NERS WHEREIN ALL 18 CO-OWNERS HAVE MENTIONED THAT THEY HAVE RECEIVED TH E RENT WITHOUT DEDUCTION OF ANY TAX. THE RELEVANT PARA OF THE AFFI DAVIT / DECLARATION BY THE 18 CO-OWNERS IS AS UNDER:- WE ALL JOINT OWNER ACCEPT MR DAYARAM POONIA HEREBY DECLARE ON OATH THAT ANY TDS DEDUCTED BY TEN ANT SHALL BE THE PROPERTY OF MR.DAYARAM POONIA AND WHAT EVER THE RENT WAS RECEIVED ON OUR BEHALF HAVE BEEN DISTR IBUTED BETWEEN US AS AGREED THEREUPON AND WE ARE PAYING TA XES REGULARLY. THAT DURING THE F.Y. 2010-11, THE ABOVE PROPERTY WA S UNDER JOINT OWNERSHIP WAS LET OUT TO MMS OM TELECOM LOGISTIC (P) LD AND M/S. JICS LOGISTIC LTD. ON THE SAME TERMS AS AGREED WITH M/S. RAJASTHAN STATE BEVERAGES CORPORATION LTD. MENTIONED ABOVE AND ACCORDINGLY WE ALL HEREBY DECLARE THAT THE RENT WAS ACCORDINGLY CREDIT ED IN OUR A/C BY MR.DAYARAM POONIA AS FULL RENT WITHOUT DEDUC TION OF ANY TAX. HENCE, MR. DAYARAM POONIA IS AUTHORIZED TO RECEIVE OR CLAIM THE WHOLE TAX BECAUSE WE HAVE PAID THE TAX ES SO LIABLE ON THIS RENT. ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 10 THAT DURING THE FINANCIAL YEAR WE HAVE NEITHER CLAI MED ANY TDS NOR WE WILL DO SO, BECAUSE WE HAVE ALREADY RECEIVED THE GROSS AMOUNT. IF ANY TAX IS DEDUCTED O N THIS ACCOUNT MR.DAYARAM POONIA SHALL HAVE A RIGHT TO CLA IM. TAKING INTO CONSIDERATION THE FACTS, CIRCUMSTANCES OF THE CASE AND THE WRITTEN SUBMISSION OF THE ASSESSEE, THE ASSESSEE IS DIRECTED TO SUBMIT THE DETAILS OF INCOME TAX RETURNS ALONGWITH COMPUTATION OF INCOME AND CONFIRMATION OF THE ACCOUNTS OF 18 CO-OWNERS OF TH E PROPERTY OF BEFORE THE AO. THE AO IS DIRECTED TO PROVIDE ADEQUATE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE IN THIS CASE IN ACCORDANCE WI TH LAW. THUS THE GROUND NO. 1 TO 3 OF THE ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSES. 3.1 AS REGARDS THE APPEAL OF THE ASSESSEE FOR THE 2 012-13, IT IS NOTED THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE SI MILAR. THE LD. CIT(A) HAS CONFIRMED THE ACTION OF THE AO BY OBSERVING AS UNDER:- (VI) THEREFORE, AS PER SUB-RULE 2 OF RULE 37BA, TH E CREDIT FOR THE TDS IS TO BE ALLOWED TO THE PERSON I N WHOSE HANDS THE CORRESPONDING INCOME IS TO BE TAXED AND N OT TO THE DEDUCTEE. THE ABOVE RULE HAS PRESCRIBED PROCEDURE F OR CLAIMING TDS CREDIT BY SUCH OTHER PERSON. (VII) HENCE, IN VIEW OF THE SECTION 199(1) R.W. RUL E 37BA, IT IS HELD THAT THE AO WAS JUSTIFIED IN RESTRICTING THE TDS CREDIT CORRESPONDING TO RENTAL INCOME OWNED BY THE APPELLANT. SIMILAR ISSUE HAS BEEN RESTORED TO THE FILE OF THE AO WHILE DECIDING THE ITA NO. 492/JP/2016 ABOVE WITH THE DIRECTION TO THE ASSESSEE TO SUBMIT ITA NO.492/JP/2016 SHRI DAYA RAM POONIA VS. ITO,WARD- 3(2), JAIPUR 11 THE DETAILS OF INCOME TAX RETURNS ALONGWITH COMPUTA TION OF INCOME AND CONFIRMATION OF THE ACCOUNTS OF 18 CO-OWNERS OF TH E PROPERTY BEFORE THE AO. THE AO IS DIRECTED TO PROVIDE ADEQUATE OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE IN THIS CASE IN ACCORDANCE WITH LAW. T HUS THE GROUND NO. 1 TO 3 OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PUR POSES. 4.0 IN THE RESULT, BOTH APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 /04/2 017. SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 19 /04/ 2017 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI DAYARAM POONIA, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 3(2), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 492 & 493/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR