SRI LAKSHMI GENERAL STORES,GUNTUR vs. INCOME TAX OFFICER, WARD-1(1), GUNTUR
Facts
The assessee, a licensed chillies commission agent, earned commission income, but buyers/traders deducted TDS on the entire sale value under Sections 194Q and 194A. The AO and CIT(A) allowed only proportionate TDS credit, limiting it to the commission income offered for taxation as per Section 199 read with Rule 37BA(2), disallowing the full credit claimed by the assessee based on Form 26AS.
Held
The Tribunal held that since the assessee offered its entire commission income for taxation, and the TDS was reported in its Form 26AS, the provisions of Section 199 and Rule 37BA(2) were duly complied with. Relying on identical previous judgments, the Tribunal directed the AO to allow full credit for the TDS claimed by the assessee for both assessment years.
Key Issues
Whether a commission agent is entitled to full TDS credit on the gross sales value where TDS was deducted on the entire value under Sections 194Q and 194A, but only commission income is offered for taxation.
Sections Cited
143(1), 194Q, 194A, 199, 37BA(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Visakhapatnam Bench
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- Sri Lakshmi General Stores, D.No.24-3-82, 1st Floor, 1. निर्धाररती/The Assessee : Opp. Ravi Parcel, Patnam Bazar, Guntur. 2. रधजस्व/ The Revenue : The Income Tax Officer, Ward-1(1), Guntur. 3. The Principal Commissioner of Income Tax, Vijayawada. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, / DR, ITAT, Visakhapatnam. 5. गधर्ाफ़धईल / Guard file
आदेशधिुसधर / BY ORDER
Sr. Private Secretary ITAT, Hyderabad