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Income Tax Appellate Tribunal, “B” BENCH, CHENNAI
Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal is a recalled matter for the limited purpose of adjudication of ground no.4 since the appeal was initially disposed-off vide order dated 19/08/2019. However, the revenue preferred miscellaneous petition against the same which was allowed in MP No.8/CHNY/2020 since ground no.4 remained to be adjudicated in the
ITA No.1255/Chny/2018 - 2 -
original order. Accordingly, the appeal has been placed before us for adjudication of ground no.4 of revenue’s appeal which read as under:-
The Ld CIT(A) erred in directing AO to delete the addition of Rs.4,25,987/- as interest receipts u/s 26AS provide the credit for TDS for next assessment year 2015-16, 4.1 The Ld CIT ought to have appreciated that as per section 251(1)(a) of the Act, the "Power to set aside" or " examining the issue afresh" has been omitted with effect from 01.06.2001 as per the Finance Act,2001. 4.2 The Ld CIT (A) failed to note that the interest income has accrued or aroused during the relevant previous year i.e. assessment year 2014-15. When it accrues during the AY 2014-15 itself the same cannot be deferred to the next FY.
Having heard rival submissions and after going through the orders of lower authorities, our adjudication would be as given in succeeding paragraphs. 3. The material facts qua the issue are that during assessment proceedings, upon perusal of Form No. 26AS, it transpired that the assessee reflected lesser interest receipts to the extent of Rs.4.25 Lacs as tabulated by Ld. AO in para 6.1 of the assessment order. The assessee submitted that these receipts were already accounted for in subsequent assessment year i.e. AY 2015-16. However, since the assessee claimed full TDS credit against the same, the differential receipts were added to the income of the assessee. 4. The Ld. CIT(A) observed that as per statutory provisions, the assessee could claim credit of TDS only in the year in which the income was offered to tax. The Ld. AO could not stretch the income of the assessee based on TDS. Since the assessee had already offered this differential receipts in next assessment year, Ld. AO was directed to verify the assessee’s submissions and delete the additions in this year and provide credit of TDS in next assessment year after verifying
ITA No.1255/Chny/2018 - 3 - assessment records. Aggrieved, the revenue is in further appeal before us. 5. We find that the directions given by Ld. CIT(A) are quite logical and reasoned one since the income has already been offered by the assessee in the next assessment year. Consequently, TDS credit would be available to the assessee in next year. Adding the differential amount in this year would amount to double taxation. The Ld. AO has already been directed to verify the assessment records and provide TDS credit in the next assessment year. No doubt, if the TDS credit is allowed in next assessment year, the credit would not be available to the assessee in this assessment year. Therefore, finding no infirmity in the impugned order, we dismiss this ground of appeal. 6. The appeal remains partly allowed for statistical purposes. Order pronounced on 7th December, 2021 Sd/- Sd/- (V.Durga Rao) (Manoj Kumar Aggarwal) �याियक सद�य / Judicial Member लेखा सद) / Accountant Member चे+ई Chennai; िदनांक Dated : 07/12/2021 TLN आदेश की Wितिलिप अ:ेिषत/Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent 2. आयकर आयु3(अपील) / The CIT(A) 3. आयकर आयु3/ CIT– concerned 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, चे+ई / DR, ITAT, Chennai 5. गाड8 फाईल / Guard File 6.
आदेशानुसार/ BY ORDER,
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, चे+ई / ITAT, Chennai