INCOME TAX OFFICER 3(1)(3), MUMBAI , MUMBAI vs. CHANDRAPUR WASTE WATER MANAGEMENT PVT. LTD, MUMBAI

M/s. Chandrapur Waste Water Management Pvt. Ltd 2. Whether on the facts & circumstances of the case, the Ld. CIT(A), NFAC is justified in ignoring the provision of rule 37BA of Income Tax Rule r.w.s. 199 of the Act, which provides that 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.

Here in this case, credit of TDS was denied in the intimation u/s.143(1) by the CPC on the ground that corresponding income on which TDS claimed has not been declared. The ld. CIT(A) give following direction to the ld. AO. “14. Decision: The TDS credit is available in Form 26AS and is verifiable. The Assessing officer is therefore directed to allow the correct TDS claim available in Form 26AS for the appellant.”

In pursuance of his direction given by the ld. CIT(A), the ld. AO in his order given effect to the ld. CIT(A)’s order after verying the income has allowed the credit. The relevant order of the ld. AO is reproduced hereunder:- “3 On perusal of ITR, it is found that assessee has not shown any receipts for the A Y 2022 23, therefore, assessee was asked to reconcile the same 4. The assessee vide its reply to this, assessee has submitted the following documents as under (a) Form 26AS (b) Concession agreement on Public Private Partnership basis entered into between Maharashtra State Power Generation Co. Ltd and assessee (c) Financials for the year ended on 31.03.2022 M/s. Chandrapur Waste Water Management Pvt. Ltd 5 On perusal of the documents submitted by the assessee the following observations are made as under: 5.1 The assessee company was incorporated on 17.02.2021. The assessee company has been incorporated with objective of to execute the project of "Implementing the Project of Design, Engineering, Supply, Erection, Construction Testing, Commissioning. Operation & Maintenance of Recycling & Reuse of 50 MLD Tertiary Treated Sewage Water from STPs of Chandrapur City Municipal Corporation for Unit No. 8 & 9 (2 x 500MW) at Chandrapur Super thermal Power Station (CSTPS) on PPP basis awarded by Maharashtra State Power Generation Co. Ltd. 5.2 On perusal of the concession agreement dated 24.02.2021 between Maharashtra State Power Generation Co. Ltd (MAHAGENCO) and assessee, it is observed that the assessee is a special purpose vehicle set up the successful bidders M/s Vishvaraj Environment Private Limited and M/s Vedic Waste Water Management (P) Ltd. M/s Vishvaraj Environment P ltd holds 90% of the shares and M/s Vedic Wastewater Management Pvt Ltd holds the remaining 10% of the shares of the assessee 5.3 As per Article 17.4, MAHAGENCO shall provide Rs.78.93 crore to the assessee as a grant available from Chandrapur Municipal Corporation under AMRUT Mission. The grant shall be paid to the assessee as Payment Milestone in proportion of the work completed in four stages. As per Form 26AS statements, the assessee has received Rs 34,34,07,612/ as grant for the year under consideration. 5.4 Further, as per article 17.5 of the concession agreement, 10% of the Total Project Cost or 20% of the total Grant allocated for the Project, whichever is lower, shall be given to assessee as Mobilization Advance. This advance shall be adjusted against the Milestone Payments. The Mobilization advance shall be received from each Milestone payment of grant paid to assessee.