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Facts
The assessee is aggrieved by the CIT(A)'s order upholding the AO's disallowance of credit for tax deducted at source (TDS) amounting to Rs. 15,63,708/- for AY 2018-19. The assessee claimed to be a resident of Singapore and provided a Tax Residency Certificate, while also declaring himself as a resident in India and claiming TDS credit. The total TDS claimed was Rs. 20,10,307/-, but only Rs. 4,46,599/- was granted.
Held
The Tribunal noted the conflicting positions of the assessee declaring residency in both Singapore and India, and the TDS claim. It held that these facts warranted examination by the Assessing Officer to determine the correct TDS credit entitlement based on applicable laws.
Key Issues
Whether the assessee is entitled to full TDS credit when claiming residency in two different countries and facing discrepancies in claimed vs. granted TDS amounts. Whether the matter needs to be remanded to the AO for fresh adjudication.
Sections Cited
143(1), 90, 90A, 192
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
This appeal by the assesse is directed against the order dated 16.12.2024 of the Commissioner of Income Tax (Appeals), Aurangabad for A.Y.2018-19 which is arising from the assessment order u/s 143(1) of the Act dated 05.11.2019 framed by CPC, Bengaluru. various grounds of appeal mentioned in Form No.36 stated that the sole grievance is that the revenue authorities failed to grant credit of tax deducted at source of Rs.15,63,708/-. He submitted that the issue may please be restored to the file of jurisdictional Assessing Officer to examine the claim of short tax deducted at source of Rs.15,63,708/-.
On the other hand Ld. Departmental Representative supported the order of lower authorities.
We have heard rival contentions and records place on record before us. The only grievance of the assessee is that against the tax deducted at source for the Assessment Year 2018-19 at Rs.20,10,307/-. the credit of tax has only been allowed at Rs.4,46,599/- and thus the deduction of tax at source at Rs.15,63,708/- has not been granted.
From perusal of the details we notice that the Ld. CIT(A) has dismissed the assessee’s appeal merely by affirming the action of Ld. A.O to disallow the claim of relief u/s 90/90A of the Act. We observe that the assessee in the return of income for the Assessment Year 2018-19 filed under the resident category has other source at Rs.1,99,171/- and after claiming the deduction under section VI A of the Act has shown the total taxable income at Rs.12,79,350/-. We observe that against the tax liability of Rs.20,21,194/-, TDS has been claimed at Rs.20,10,307/-. Further from the perusal of Form 26AS placed at page 122-124 of the paper book we observe that Shell India Market Pvt. Ltd has deducted tax at source u/s 192 of the Act at Rs.19,94,082/- on the total amount paid/credited at Rs.64,91,670/-. The assessee has also enclosed a copy of tax residency certificate issued by the Singapore Tax Authorities certifying that the assessee was a resident in Singapore for income tax purposes for calendar year 2017-2018. These facts indicates that the assessee has been tax resident in Singapore for the assessment year under consideration and along with the payments received towards salary for working in Singapore he also received income in India. In the given situation where the assessee has declared himself as resident in the ITR and on the other hand he holds a Tax Residency Certificate of Singapore, we find that the issue deserves to be examined by the Ld. Assessing Officer and if the alleged claim of the assessee is found to be in accordance with deducted at source of remaining amount of Rs.15,63,708/- after giving reasonable opportunity to the assessee of being heard.
Accordingly the finding of Ld. CIT(A) is set aside and the issue raised in the instant appeal on merits are restored to the file of Ld. Jurisdictional A.O for denovo adjudication to be carried at in accordance with the law. Effective grounds of appeal on merits are allowed for statistical purpose.
In the result appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 23.10.2025.