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Facts
The assessee claimed TDS credit of Rs. 16,58,242/-. The Assessing Officer denied this credit, stating that the income related to this TDS was disclosed in the preceding assessment year (2015-16) but the TDS was deducted in the current year. The CIT(A) upheld the AO's order.
Held
The Tribunal noted that the contract receipt of Rs. 8,29,12,088/- was indeed disclosed in the financial statement for AY 2015-16 and the income offered to tax. Therefore, the AO should have either adjusted the TDS against the tax liability for AY 2015-16 or allowed the TDS claim for the year under consideration.
Key Issues
Whether the TDS credit of Rs. 16,58,242/- should be allowed for the assessment year 2016-17 when the related income was offered for tax in the preceding assessment year.
Sections Cited
143(3), 253(6)(d)
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Income Tax Appellate Tribunal, JAIPUR BENCHES “SMC”, JAIPUR
Before: DR.MANISH BORAD
Date of hearing : 03.07.2025 Date of pronouncement : 29.07.2025 आदेश / ORDER This appeal at the instance of the assessee is directed against the order of ld. Addl/JCIT(A), Thiruvanantpuram dated 16.04.2024 which is arising out of the order u/s 143(3) of the Act dated 17.12.2018 for A.Y 2016-17 framed by ACIT, Circle- 03, Jaipur.
I note that the Registry has issued a defect notice stating that appeal fees of only Rs. 500/- has been paid as against of Rs. 10,000/- payable for filing the appeal.
2 Super Prime Construction Pvt. Ltd.
3. From perusal of the assessment order, I notice that the return of income of the assessee has been accepted and only the TDS credit of Rs.16,58,242/- has been denied.
Considering these facts and circumstances, I find that the case of the assessee falls u/s 253(6)(d) of the Act and therefore, appeal fees payable by the assessee is only Rs. 500/- and therefore, there is no short payment of appeal fees. Now I proceed to adjudicate the appeal.
Assessee has raised following grounds of appeal.
The Ld. CIT(A) has erred on facts and in law in not allowing the credit of TDS to the extent of Rs. 16,58,242/- by not considering the fact that income pertaining to the said TDS has been offered for tax by the assessee in the previous A.Y.
2. The appellant craves to alter, amend and modify any ground of appeal.
Necessary cost be awarded to the assessee.”
I have heard rival contentions and perused the records placed before me. I note that the assessee is a Private Limited company and income of Rs. 28,24,980/- declared in the return e-filed on 29.09.2016. During the course of assessment proceedings which was carried out under the limited scrutiny, it was found that the assessee is engaged in the Civil 3 Super Prime Construction Pvt. Ltd. Construction works on contractorship basis. Ld. AO while examining the TDS details as per Form 26AS found that the contract receipt from M/s. Manglam Build Developers are at Rs.11,22,42,164/- whereas the assessee has shown the revenue only Rs.2,93,30,076/-. It was claimed by the assessee before Assessing Officer that the difference of the above two sums of Rs.8,29,12,088/- has already been disclosed in the audited Financial Statement of preceding assessment year i.e. 2015-16 but the tax deductor did not deduct the tax during the preceding year but deducted the tax on the total contract receipt of Rs.11.22 Crore (approx) in the year under consideration. However, ld. Assessing Officer was not satisfied and denied the claim of TDS of Rs.16,58,242/- proportionately on contract receipt basis.
Further, the assessee failed to get any relief from ld. CIT(A). I further note that the Revenue authority have not disputed the fact that the contract receipt of Rs.8,29,12,088/- has been disclosed in the financial statement for A.Y 2015-16 and the income earned therefrom has been offered to tax. Now under these facts and circumstances, ld. AO should have either given the benefit of TDS of Rs.16,58,242/- against the tax liability for A.Y 2015-16 or should allow the TDS claim of 4 Super Prime Construction Pvt. Ltd. Rs. 16,58,242/- for the year under consideration. With these directions the impugned order is set aside and grounds so raised by the assessee are allowed. Ld. Assessing Officer is directed to give necessary effect as referred above.
In the result, appeal filed by the assessee is allowed.