RAINBOW PROMOTORS P.LTD,NEW DELHI vs. ITO, WARD 21(1), NEW DELHI

PER PRADIP KUMAR KEDIA-A.M. : The captioned appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (‘CIT(A)’ in short) dated 27.04.2023 arising from the assessment order dated 08.02.2021 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2018-19. 2. The ld. counsel for the assessee submits that as per the appeal memo, the assessee seeks remedy against the denial of TDS credit of Rs.80,94,869/- in the Assessment Year 2018-19 in question. The assessee, in short, seeks credit for TDS not reflected in Form 26AS for AY 2018-19 but is reflected in AY 2019-20. To support such claim, the ld. counsel submits that the assessee sold

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a land parcel for Rs.1,61,89,73,826/- to purchaser namely, Godrej Real Value Developers Pvt. Ltd. on 05.07.2017. As per the sale deed, annexed in the paper book, the sale however was made on the basis of deferred consideration where 50% of consideration was received in F.Y. 2017-18 and accordingly the seller deducted TDS thereon to the extent of consideration of Rs.80,94,869/- as reflected in the form 26AS. The seller paid the remaining 50% of consideration in F.Y. 2017-18 relevant to Assessment Year 2018- 19 and deducted balance TDS of Rs.80,94,869/- in next year. Thus, in aggregate, the payment of consideration was spread over two financial years and TDS was also credited in part in proportion to payment in two different assessment years i.e. AY 2018-19 and AY 2019-20 equally. The assessee has claimed the entire sale consideration in the Financial Year 2017-18 relevant to Assessment Year 2018-19 and claimed entire credit for TDS of Rs.1,61,89,738/- in terms of Section 199 of the Act. The Revenue has denied the claim of TDS of Rs.80,94,869/- not credited to Central Govt. on balance 50% sale consideration for which credit was received by Central Govt. in the Assessment Year 2019-20. The aforesaid credit has duly reflected in form 26AS relevant to Assessment Year 2019-20 but however the assessee has not claimed any TDS credit in that year as it has already claimed such credit in the Assessment Year 2018-19 in question. The ld. counsel seeks relief by way of full credit of TDS towards entire sale consideration instead of part consideration paid in the subsequent assessment year in accordance with Section 199 r.w. Rule 37BA(3) of Income Tax Rules, 1963. 3. The TDS credit has been stated to be reflected in Assessment Year 2019-20 whereas the assessee seeks claim in AY 2018-19 in

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question owing to execution of sale deed during the year and declaration of corresponding income regardless of deferment of payment of sale consideration and deduction of TDS thereon. The TDS as stated to be deducted i.e. 50% in Assessment Year 2018- 19 and remaining 50% in Assessment Year 2019-20. In the light of the submissions made on behalf of the assessee and having regard to the decisions of the Co-ordinate Bench in the case of M/s. Mahesh Software Systems Pvt. Ltd. vs. ACIT in ITA No.1288/PUN/2017 order dated 20.09.2018 and Sanjeev Rajendra Pundit vs. ACIT in ITA No.3004 & 3005/Mum/2022 order dated 24.01.2013, I find merit in the plea of the assessee. The revenue has not demonstrated any prejudice to it by such claim of the assessee. This being so, the claim of the assessee deserves acceptance. 4. The AO is directed to grant credit of TDS amounting to Rs.80,94,869/- reflected in Form 26AS in AY 2019-20 and ensure that the assessee does not claim the credit yet again of the same amount in Assessment Year 2019-20 or in any other assessment years. 5. In the result, the appeal of the assessee is allowed. Order was pronounced and dictated in the open Court on 23/11/2023

Sd/- [PRADIP KUMAR KEDIA] ACCOUNTANT MEMBER DATED: /11/2023 Prabhat