Interglobe Enterprises Pvt. Ltd., Gurgaon V. ACIT, Circle- 12(2), New Delhi

ITA 6580/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9759 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Appeal Filed On: 06-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUPAMA SINGLA
• Keywords: TDS
• Section: 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.6580/DEL/2019 Assessment Year 2016-17 M/s. Interglobe Entreprises Pvt. Ltd., Block 2B, DLF Corporate Park, DLF City, Phase III, Gurgaon, Haryana Assistant Commissioner of Income Tax, Circle-12(2), I.P. Estate, C.R. Building, New Delhi. TAN/PAN: AAACG3351K (Appellant) (Respondent) Appellant by: Shri Negesh Kumar, Adv. Respondent by: Ms. Anupama Singla, Sr.DR Date of hearing: 31 05 2022 Date of pronouncement: 07 06 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e Co mmiss io n er o f Inco me Tax (App eals)-IV, New Delh i (‘CIT(A)’ in sh o rt) d ated 3 0 .0 5 .2 01 9 arisin g fro m th e assess men t o rd er d ated 2 8 .1 2 .20 18 p assed by th e Assessin g Officer (AO) u n d er Sect io n 1 4 3(3 ) of th e In co me Tax Act, 1 9 6 1 (th e Act) co n cern in g AY 20 1 6-1 7 . 2 . Brie fly s ta ted , t h e assesse e d ec lared an in co me o f Rs.1 ,6 6 ,1 1 ,8 7 2 /- fo r Assessmen t Year 2 0 16 -17 in quest io n an d in ter a l ia cla imed cred it fo r TDS amo u n tin g to Rs. 1 6 ,6 1 ,18 5 /- d ed u cted b y d ed u cto r in th e su b seq u en t Assessmen t Yea r 2 0 17 -18 . Th e assessee c lai med cred it o f TDS in Assessmen t Year 2 01 6 -17 I.T.A. No.6580/Del/2019 2 q u a th e co rrespo ndin g in co me rep o rted in th at y ear an d n o t in th e su b seq u en t Assessmen t Year 2 0 1 7 -18 wh ere th e TDS was actu a lly d ed u cted an d reflec ted in th e an n u al in fo rmat io n sta te men t g en erated b y th e Dep artmen t in fo rm 2 6 AS. Th e Assessin g Offic er h o wev er d id n o t gran t cred it o f TDS in Assessmen t Ye ar 2 01 6 -17 rep o rted ly o n th e p remise th a t su ch cred it is n o t re flec ted in fo rm n o .2 6AS fo r Asses smen t Year 2 0 1 6 -17 in q u estio n . 3 . Ag g riev ed , th e ass essee p re ferred ap p eal b e fo re th e CI T(A). Th e CIT(A) h o wev er d eclin ed to g ran t re lie f in Asses smen t Year 2 0 16 -17 in q u estio n bu t h owev er d irected th e Assessin g Offi cer to allo w su ch cred i t in th e su ccee d in g assess men t y ear, i .e ., Assessmen t Year 2 0 17 -18 on th e b asis o f fo rm 2 6 AS co n cern ing Assessmen t Year 2 0 1 7 -1 8 . 4 . Ag g riev ed b y th e p o stp on emen t o f cred it o f TDS mad e av ail ab le to th e as sessee in Assess men t Year 2 0 1 7 -18 in stead o f Assessmen t Year 2 0 16 -17 in q u estio n , th e assess e e preferred ap p eal b e fo re th e Trib u n al. 5 . We h av e carefu l ly co n sid ered th e riv al su b mis sion s. It is th e case o f th e a ssess ee th at wh en th e issu e o f av ai labi l i ty o f TDS cred it in th e ap p ro p riate assess men t y ear is ex amined i n th e l ig h t o f Sec tio n 1 9 9 (3) r.w. Ru le 3 7 BA(3 ) o f th e In co me Ta x Ru les, it wo u ld b e clear th at cred it fo r tax d ed u cted at so u rce an d p aid to th e Cen tral Go v ernmen t , sh a ll b e g iv e n fo r th e as sess me n t y ear fo r wh ich su ch in co me is ass essab l e. T h e assessee co n ten d s th at th e TDS cred it is av ail ab le in th e fin an cia l y e ar wh ere th e co rresp o nd in g in co me h as b een referred b y th e assessee . A referen ce was mad e to th e d ecisio n o f th e Co -o rd in ate Ben ch in th e case o f Grea tsh ip In d ia Ltd . vs. DCIT in ITA I.T.A. No.6580/Del/2019 3 No .5 5 6 2 /Mu m/20 18 o rd er da ted 8 t h Ju n e, 2 0 20 to co n ten d th at th e TDS cred it c an n o t b e p o stp o n ed to a d ifferen t ass ess men t y ear o n th e b asis o f d ed u ctio n carr ied o u t b y th e d ed u cto r wh en th e accru ed in co me fr o m su ch tran sact i o n h as b een rep o rted in th e earl ier as sess men t y ear. 6 . A co mb in ed read i n g o f Sectio n 1 9 9(3 ) r.w. Ru le 37 BA(3) mak es th e p o sitio n o f law cl ear th a t cred it fo r TDS is a v ailab l e in th e y ear in wh ich t h e in co me is rep o rted an d as a co ro ll ary , sh o u ld n o t b e d eferred to so me o th er assess men t y ear . In th e i n stan t cas e, th e Rev en u e h as allo wed th e cred it i n th e sub seq u ent assess men t y ear wh en th e TDS is sh o wn to h ave b een cred it ed in th e fo rm 2 6 AS. Howev er, as s ta ted o n b eh alf o f th e a ssessee , th e co rresp o nd in g in co me wi ll n o t b e fo u n d to b e reco rded and th erefo re su ch d i rect io n wo u ld b elie th e l et ter an d sp iri t o f Sect io n 1 99 (3) an d Ru le 3 7 BA(3) th ereto . Th u s, o n first p rin cip les, we are in cl in ed to ag ree with th e stan d tak e n on b eh alf o f th e asse ssee fo r el ig ib i li ty TDS cr ed it in th e Assess men t Year 2 0 16 -17 itse lf wh en in co me h as b een cl ai med to h av e accru ed /aris en an d in clu d ed fo r d etermin at io n to charg eab le in co me . 7 . In th e same v ein , h o wev er, we no te th at n o po sitiv e fi n d ing o f th e Rev en u e Au th o rities b elo w is av ai lab l e to sho w as to wh eth er tax cred it fo r TDS refl ec ted in fo rm No . 2 6AS in Assessmen t Year 2 0 17 -18 h as b een cla i med o r o th erwise in th a t assess men t y ear. A v erifica t io n o f factu a l p o sitio n is req u ired to sh u n th e p o ssib il it y o f d o u b le cl ai m. Th e assess ee sh al l b e en ti t led to cred i t o f TDS co rresp o n d ing to th e in co me rep o rted in th e Assessmen t Year 20 1 6 -1 7 itsel f p ro v id ed ; (i) th e assessee h as n o t cla i med an y cred i t o f TDS in an y o t h er assess men t ye ar; (i i) an I.T.A. No.6580/Del/2019 4 u n d ertak in g /affid a v it is p laced b y th e ass essee b efo re t h e Rev en u e Au th o rities to le n d assu ran ce th at su ch cred it cl aimed in Assessmen t Year 2 0 1 6 -1 7 sh all n o t b e d o u b ly clai med i n an y o th er assess men t y ear i n fu tu re b ased on fo rm 2 6 AS o r an y o th er d o cu men t. On b ein g satisfied , th e Assessin g Offi cer sh all g ran t th e TDS cred it in ter ms o f o b serv ati o n s mad e h ereinab o v e. With th ese o b serv atio n s, th e i mp u g n ed order o f th e CIT(A) i s set as id e an d resto re b ack t o th e fi le o f th e A ssessin g Officer fo r g ran t o f cred it in a cco rd an ce wi th law. 8 . In th e resu lt, th e ap p eal o f th e a ssessee is a llo we d fo r sta tis ti ca l p u rp o ses. Order pronounced in the open Court on 07/06/2022. Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2022 Prabhat