DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 4(2), DELHI, I.P.ESTATE, NEW DELHI vs. BOEING INDIA DEFENSE PRIVATE LIMITED, SANSAD MARG, NEW DELHI

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ITA 3292/DEL/2023Status: DisposedITAT Delhi14 June 2024AY 2020-21Bench: us. We have heard both the parties and perused the records.6. Ld. Counsel for the assessee relied upon the order of ld. CIT (A) and also referred to the decision of ITAT in the case of M/s. Greatship (India) Ltd. in ITA No.5562/Mum/2018 AY 2015-16 order dated 08.01.2020. He pleaded that the order of ld. CIT (A) is to be upheld.4 pages

AI SummaryDismissed

Facts

The Assessing Officer denied TDS credit of Rs. 2,10,61,401/- to the assessee as the TDS, though related to income assessable in FY 2019-20, was deposited and appeared in Form 26AS in the subsequent year, FY 2020-21. The CIT(A) allowed the credit, citing Rule 37BA, stating that credit should be given for the assessment year in which the income is assessable.

Held

The ITAT, following the precedent set in M/s. Greatship (India) Ltd., and referring to Section 199(3) of the Income-tax Act, 1961 and Rule 37BA, upheld the order of the CIT(A). Consequently, the TDS credit was allowed to the assessee for the assessment year in question.

Key Issues

Whether TDS credit should be allowed in the assessment year when the corresponding income is assessable, even if the TDS was deposited and reflected in Form 26AS in the subsequent financial year.

Sections Cited

199, 37BA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’ : NEW DELHI

For Appellant: Shri Ravi Sharma, Advocate, Ms. Shruti Khimta, CA

For Respondent: Shri Kanv Bali, Sr. DR

Hearing: 12.06.2024

Order

: 14.06.2024 ORDER

PER SHAMIM YAHYA, ACCOUNTANT MEMBER :

This appeal by the Revenue is directed against the order of the ld. CIT (Appeals)/National Faceless Appeal Centre (NFAC) dated 18.11.2022 for the assessment year 2020-21.

The Revenue has taken the following ground of appeal :- “Whether on the facts and circumstances of the case, the CIT (A) erred in allowing the credit of TDS without verifying the corresponding income during the year.”

Briefly stated the facts of the case are that the Assessing Officer did not grant TDS credit to the extent of Rs.2,10,61,401/-. The assessee has entered into a contract with Indian Air Force to operate and maintain Boeing Business Jet. The assessee received an amount of Rs.21,06,14,010/- pertaining to the year under consideration i.e. FY 2019-20. The TDS amounting to Rs.2,10,61,401/- deducted by the Indian Air Force was deposited in the next year and appearing in 26AS of succeeding year i.e. FY 2020-21. On these facts, the TDS credit was denied by the AO to the assessee.

Upon assessee’s appeal, ld. CIT (A) allowed the same by referring to relevant Rule 32BA para 3 and held as under :- “5.14 Relevant rule 37BA para 3 states as below :- (Credit for tax deducted at source for the purpose of section 199 (of the IT Act) 37BA ..... ......... (3)(i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. ..... As the income has been offered and assessable in this year, the TDS credit shall also be given in this year. The assessing officer is directed to verify these facts and claim of the assessee and allow TDS credit as applicable. 5.15 The ground of appeal is allowed subject to verification by the assessing officer. 5.16 In result, the appeal is partly allowed.”