CCN DEN NETWORK PVT. LTD., NEW DELHI V. ADDL. CIT, RANGE- 5, NEW DELHI

MA 89/DEL/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9260 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 08-06-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E V BHASKAR
• Keywords: TDS; FORM 26AS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER M.A. NO. 89/DEL/2021 (IN ITA NO. 7272/DEL/2017) AND ITA NO.- 7272/DEL/2017 (ASSESSMENT YEAR: 2014-15) CCN DEN NETWORK PVT. LTD. C-1/9, KRISHAN NAGAR, NEW DELHI VS. ADDL. CIT, RANGE-5, NEW DELHI. PAN NO. AA ECC6262B APPELLANT RESPONDENT ASSESSEE BY SH. R.S. SINGHVI, CA & SH. SATYA JEET GOEL, CA REVENUE BY SH. E.V. BHASKAR, SR. DR DATE OF HEARING: 30/07/2021 PRONOUNCEMENT ON 30/07/2021 ORDER PER K. NARASIMHA CHARY, JM THIS MISCELLANEOUS APPLICATION IS FILED BY THE ASS ESSEE SEEKING RECALL OF THE ORDER DATED 10/3/2021 IN ITA NO. 7272 /DEL/2017 ON THE GROUND THAT THE ISSUE RELATING TO THE ADDITION OF T HE TDS CREDIT NEEDS TO BE ADJUDICATED. 2 2. IT IS SUBMITTED BY THE LD. AR THAT VIDE ORDER DA TED 27/12/2016 LEARNED ASSESSING OFFICER, OBSERVED THAT THE TDS CR EDIT WAS CLAIMED BY THE ASSESSEE WITH RESPECT TO THE INCOME, WHICH WERE OFFERED TO TAX IN THE ASSESSMENT YEAR 2013-14, AND AS PER SECTION 199 OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) SUCH CLAIM WAS PERMISSIB LE IN THE YEAR IN WHICH THE SAID INCOME WAS OFFERED TO TAX, BUT NOT IN THE SUBSEQUENT YEARS, AND ON THIS PREMISE, LEARNED ASSESSING OFFICER PROCEEDE D TO ADD THE AMOUNTS SHOWN AS TDS CREDIT IN FORM 26AS. SINCE THE LD. CIT (A), IN THE FIRST APPEAL, DID NOT DISTURB THIS FINDING AND THEREFORE THE ASSE SSEE PREFERRED THE APPEAL. 3. LD. AR SUBMITTED THAT THOUGH THE TRIBUNAL BY ORD ER DATED 10/3/2021 OBSERVED THAT TDS CREDIT IN RESPECT OF IN COME OFFERED TO TAX IN SOME OTHER YEAR, CANNOT BE ALLOWED TO CLAIM IN THIS YEAR, IT MISSED THE ATTENTION OF THE TRIBUNAL TO SPECIFICALLY DELETE TH E ADDITIONS MADE. HE SUBMITS THAT THIS IS THE MISTAKE APPARENT ON THE FA CE OF RECORD. 4. ON A PERUSAL OF THE MATERIAL PAPERS ON RECORD, A ND THE GROUNDS OF APPEAL, WE ARE SATISFIED THAT A MISTAKE HAD CREPT I N WHILE ADJUDICATING THE APPEAL AND IT IS APPARENT ON THE FACE OF RECORD, WA RRANTING THE RECALL OF THE ORDER DATED 10.03.2021. WE, ACCORDINGLY AND REC ALL THE ORDER DATED 10/3/2021 PASSED IN ITA NO. 7272/DEL/2017, AND PROC EED TO DISPOSE OF THE APPEAL. ITA NO. 7272 /DEL/ 2017. 5. IT IS SUBMITTED BY THE LD. AR THAT WHETHER OR NO T THE LEARNED ASSESSING OFFICER ALLOWS THE CREDIT OF TDS IN THIS YEAR RELATING TO THE INCOME OFFERED FOR TAX IN THE EARLIER YEAR, IN ANY EVENT, SUCH TDS CREDIT 3 AMOUNT CANNOT BE ADDED TO THE INCOME OF THE ASSESSE E FOR THE SIMPLE REASON THAT TDS CREDIT REPRESENTS THE TAX DEDUCTED AT SOURCE IN RESPECT OF THE INCOME IN THE EARLIER ASSESSMENT YEAR. ONCE TAX IS DEDUCTED AND IT IS REFLECTED IN FORM 26AS, IT CANNOT BE ACCOUNTED A S INCOME OF THE ASSESSEE SINCE IT IS THE DEDUCTED PORTION OF THE TA X. HE, THEREFORE, PRAYS TO DELETE THE ADDITION OF THE TDS CREDIT AMOUNT. LD . DR PLACES RELIANCE ON THE ORDERS OF THE AUTHORITIES BELOW. 6. IT COULD BE SEEN FROM THE ASSESSMENT ORDER, LEAR NED ASSESSING OFFICER OBSERVED THAT TDS CREDIT WAS CLAIMED BY THE ASSESSEE EVEN WITH RESPECT TO THOSE INCOMES WHICH HAD BEEN OFFERED TO TAX IN FINANCIAL YEAR 2012-13; THAT SINCE THE INCOME WAS ALREADY OFFERED TO TAX IN FINANCIAL YEAR 2012-13, THE TDS CREDITED IS INCOME RECEIVED A ND AS PER SECTION 199 OF THE ACT, THE CLAIM OF SUCH TDS WAS PERMISSIBLE T O THE ASSESSEE IN THE YEAR IN WHICH THE SAID INCOME, IN RESPECT OF WHICH THE CORRESPONDING TDS AGGREGATING TO RS. 14,56,771/-, WAS OFFERED TO TAX; AND THAT IN THE ABSENCE OF THE CORRESPONDING INCOME BEING OFFERED I N THE ASSESSMENT YEAR 2014-15, THE AGGREGATE EXCESS TDS CLAIMED OF R S. 14,56,771/-WAS PROPOSED TO BE NOT PERMITTED TO THE ASSESSEE. THEN THE ASSESSING OFFICER PROCEEDED FURTHER AND MADE THE ADDITION OF ALL THE TDS CREDIT AMOUNTS AS COULD BE FOUND FROM FORM 26AS, TO THE INCOME OF THE ASSESSEE. 7. TDS CREDIT REPRESENTS THE TAX THAT HAD ALREADY BEEN DEDUCTED IN RESPECT OF THE INCOME, WHICH WAS OFFERED TO TAX IN THE EARLIER ASSESSMENT YEAR, IN THIS CASE. WHEN ONCE THIS TAX IS DEDUCTED, ADDING IT BACK TO THE INCOME OF THE ASSESSEE FOR FURTHER TAXATION DOES NO T ARISE. WHETHER OR NOT THE LEARNED ASSESSING OFFICER PERMITS THE TDS C REDIT IN THIS YEAR IS DIFFERENT FROM MAKING AN ADDITION THEREOF AGAIN TO THE INCOME OF THE 4 ASSESSEE. IT IS NOT THE INCOME IN ITS SENSE, BUT IT IS A TAX DEDUCTED AT SOURCE ON THE INCOME OFFERED TO TAX AT SOME POINT O F TIME. THE ADDITION MADE BY THE LEARNED ASSESSING OFFICER IS A MISCONCE IVED ONE AND CANNOT BE SUSTAINED. WITH THIS VIEW OF THE MATTER WE ALLOW THE GROUNDS OF APPEAL. 8. IN THE RESULT, MISCELLANEOUS APPLICATION AND THE APPEAL OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30TH DAY OF J ULY, 2021 IMMEDIATELY AFTER CONCLUSION OF HEARING ON VIRTUAL MODE. SD/- SD/- (PRASHANT MAHARISHI) (K. NARSIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30/07/2021