BHAJAN LAL,SIRSA vs. ITO WARD - 1 , SIRSA

Aforesaid appeal by assessee for Assessment Year (AY) 2022- 23 arises out of an order of Ld. Addl. / JCIT (Appeal), Pune dated 19- 08-2025 in the matter of a rectification order passed by CPC u/s 154 on 05-05-2023 denying TDS credit of Rs. 42,726/- as claimed by the assessee. Having heard rival submissions, the appeal is disposed-off as under.

It could be seen that Ld. CIT(A) has denied the credit by invoking Rule 37BA(2) since the assessee acted as commission agent and carried out sales on behalf of its principals. The Ld. CIT(A) upheld denial of TDS credit on the ground that the assessee ought to have got TDS certificates issued in the name of his clients.

From assessee’s pleadings, it could be seen that the assessee has acted as Kaccha Arhtia. The assessee receives payment from traders on behalf of the farmers against commission income. The commission receipts become the income of the assessee. However, few of the traders have deducted TDS u/s 194Q against gross receipts which are not the receipts for the assessee. These receipts would never be offered as revenue receipts. Nevertheless, TDS has been deducted against assessee’s payment and it is the assessee’s money which has been deducted by the traders. Therefore, the credit of the same would certainly be available to the assessee. Therefore, I direct Ld. AO to grant impugned TDS credit of Rs.42,726/-.

The appeal stand allowed. Order pronounced on 25th November, 2025.