U GAMES PRIVATE LIMITED ,MUMBAI vs. ITO, WARD 13(1)(1), MUMBAI

Facts

The assessee, U Games Private Limited, claimed TDS credit amounting to INR 8,06,425/- for income earned from Google Asia Pacific Pte. Limited. This TDS was reflected in the Form 26AS of the transferor company, Play Games, due to an internal restructuring. The assessee argued they were eligible for the credit as the transferor company had not claimed it.

Held

The Tribunal noted that credit for TDS is to be accorded strictly in conformity with Section 199 of the Act read with Rule 37BA. While the assessee's income was chargeable, the procedure for obtaining the credit was not followed correctly by either the assessee or the transferor company. However, the Tribunal found merit in allowing the credit, considering it a procedural issue.

Key Issues

Whether the assessee is eligible for TDS credit when the income and TDS are reflected in the transferor company's Form 26AS and the transferor company has not claimed the credit, despite procedural lapses by both parties?