“tax deducted at source”

Chapter XVII - Collection & Recovery (TDS)Chapter XVII-BChapter XVII-B / Rule 26B / Rule 37BA(2)2,249 judgments

The decision most relied on for tax deducted at source is GE India Technology Centre Pvt. Ltd. v. CIT (327 ITR 456), cited in 663 judgments on BharatTax.

Leading authorities on tax deducted at source

GE India Technology Centre Pvt. Ltd. v. CIT

327 ITR 456 · 2010 · Supreme Court

663

citing judgments

Tax must be deducted at source from payments made to a non-resident under Section 195 only if such payment is chargeable to tax in India. The Assessing Officer bears the onus to establish that the payments made are indeed chargeable to tax under the Income Tax Act.

Gajanan Constructions v. DCIT

74 Taxmann.com 6 · 2016 · ITAT

465

citing judgments

Late fees under section 234E can only be levied prospectively from June 1, 2015. Levying late fees for periods prior to this date is not permissible.

CIT v. Samsung Electronics Ltd.

345 ITR 494 · 2012 · High Court

461

citing judgments

Payments by Indian residents to non-resident foreign software suppliers for software are considered royalty, constituting income deemed to accrue in India under section 9(1)(v), thereby requiring tax deduction at source under section 195.

CIT v. Ansal Land Mark Township (P) Ltd.

377 ITR 635 · 2015 · High Court

369

citing judgments

The second proviso to Section 40(a)(ia), introduced by the Finance Act, 2012, is curative and applies retrospectively from April 1, 2005. Consequently, if the recipient of a payment has filed their return and paid taxes on the amount from which tax was not deducted at source, the payer's expenditure cannot be disallowed under Section 40(a)(ia).

Transmission Corporation of Andhra Pradesh v. CIT

239 ITR 587 · 1999 · Supreme Court

243

citing judgments

The Supreme Court lays down principles for deducting tax at source (TDS) under Section 195 on payments to non-residents, including aspects of income deemed taxable in India and the application of Double Taxation Avoidance Agreements (DTAAs) under Section 90.

PCIT v. Peroorkada Service Co-op. Bank Ltd.

442 ITR 141 · 2022 · High Court

208

citing judgments

Interest income earned by a co-operative society from deposits with other co-operative banks, such as district or state co-operative banks, is eligible for deduction under Section 80P(2)(d) of the Income-tax Act, as it is considered income from other sources.

DIT v. GE Packaged Power Inc.

373 ITR 65 · 2015 · High Court

199

citing judgments

Interest under section 234B for default in payment of advance tax is not leviable when the entire income is subject to tax deduction at source under section 195, as no advance tax liability arises for the assessee in such circumstances.

CIT v. Ansal Landmark Township (P.) Ltd.

61 Taxmann.com 45 · 2015 · High Court

177

citing judgments

Disallowance under section 40(a)(ia) cannot be made when the assessee has deducted tax at a lesser rate, as opposed to no deduction. The second proviso to section 40(a)(ia) is applicable retrospectively, mitigating disallowance where tax is deposited by the recipient.

Judgments citing tax deducted at source

ACIT C.C. 35, Mumbai vs. M/S. Marico Foods Ltd., Mumbai

In the result, the Revenue’s appeal bearing ITA No

ITA 7397/MUM/2004[2000-2001]Status: DisposedITAT Mumbai07 Mar 2025AY 2000-2001

Bench: Shri Amarjit Singh & Shri Anikesh Banerjee- A.Y. 2000-01 - A.Y. 2001-02 - A.Y. 2002-03

For Appellant: Shri Nitesh Joshi & Shri MilinFor Respondent: Ms. Monica H Pande,SR AR

Section 115JSection 143(3)Section 250Section 801BSection 80H

Interest on fixed loans 1.050 7.407 Other interest 25.180 19.984 Bank charges and others 28.535 31.292 ______ _________ 54.765 58.593 Less: Interest earned 22.519 21.525 (Tax deducted at source Rs.4.643 million (Rs.4.815 million) _____________________ 32.246 37.068 ======= =========” 17. The assessee paid the interest or Rs.54.76 million whereas the interest earned is Rs.22.51 million

M/S. Marico Industries Ltd., Mumbai vs. DCIT Cen. Cir. - 35, Mumbai

In the result, the Revenue's appeal bearing ITA No

ITA 7124/MUM/2004[2000-2001]Status: DisposedITAT Mumbai07 Mar 2025AY 2000-2001

Bench: Shri Amarjit Singh & Shri Anikesh Banerjee

For Appellant: Shri Nitesh Joshi & Shri MilinFor Respondent: Ms. Monica H Pande,SR AR

Section 115JSection 143(3)Section 250Section 80HSection 80I

ended March 31, 2000 Rs.million 1.050 25.180 28.535 54.765 Year ended March 31, 1999 Rs.million 7.407 19.984 31.292 58.593 Less: Interest earned 22.519 (Tax deducted at source Rs.4.643 million (Rs.4.815 million) 32.246 ========= 21.525 ======== 37.068 ======== 17. The assessee paid the interest or Rs.54.76 million whereas the interest earned is Rs.22.51 million

Laxmi Siddharth Transmissions LLP, Zizamabad vs. ACIT., Circle-1, Nizamabad

In the result, appeal of the assessee is dismissed

ITA 1247/HYD/2024[2008-09]Status: DisposedITAT Hyderabad03 Mar 2025AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: Shri A. Harish, AdvocateFor Respondent: Shri Srinath Sadanala, Sr. AR

Section 143(1)Section 154Section 203ASection 205Section 220(2)

declaring income at Rs.21,11,790/- by claiming 2 ITA.No.1247/Hyd./2024 a refund of Rs.55,590/- arising on account of claim of Tax Deduction at Source [“TDS”] by the Government Agencies for the contract payments. The CPC has transferred the jurisdiction to the Assessing Officer at Nizamabad ... Sec.205 of the Act, the Tax payer shall not be called upon to 3 ITA.No.1247/Hyd./2024 pay to the extent of tax deducted at source. Whereas the Central Processing Unit of the Department had adjusted the demand of Rs.8,35,180/- for the assessment year 2008-09 together with

Dy. Commissioner of Income Tax-5(2)(1), Mumbai vs. Aditya Birla Housing Finance Limited, Mumbai

ITA 4611/MUM/2024[2020-21]Status: DisposedITAT Mumbai03 Mar 2025AY 2020-21

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Ronak DoshiFor Respondent: Dr. K. R. Subhash

Section 143(1)Section 143(2)Section 143(3)Section 144BSection 250Section 43B

deleting the adjustment made on account of Income Computation and Disclosure Standards (ICDS) amounting to INR.2,27,82,861/-, (d) granting credit of Tax Deducted at Source (TDS) of INR.1,90,121/- and (e) granting additional credit of TDS INR.29,30,368/- reflected in updated Form 26AS. 4.3. Being aggrieved ... therein and thereby, accepted Assessee claim for additional credit of 29,30,368/- [INR.12,76,37,773/- Less INR.12,47,07,405/-] as tax deducted at source. The Revenue is aggrieved by the order of CIT(A) granting credit of TDS to the extent of INR.27,40,247/- [INR.29

Dy. Commissioner of Income Tax-5(2)(1), Mumbai vs. Aditya Birla Housing Finance Limited, Mumbai

ITA 4610/MUM/2024[2021-22]Status: DisposedITAT Mumbai03 Mar 2025AY 2021-22

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Ronak DoshiFor Respondent: Dr. K. R. Subhash

Section 143(1)Section 143(2)Section 143(3)Section 144BSection 250Section 43B

Dy. Commissioner of Income Tax-5(2)(1), Mumbai vs. Aditya Birla Housing Finance Limited, Mumbai

ITA 4609/MUM/2024[2022-23]Status: DisposedITAT Mumbai03 Mar 2025AY 2022-23

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Ronak DoshiFor Respondent: Dr. K. R. Subhash

Section 143(1)Section 143(2)Section 143(3)Section 144BSection 250Section 43B

Ups Express Private Limited, Mumbai vs. Deputy C/Assistant Commissioner of Income Tax 3(1)(1), Mumbai

In the result the appeal filed by the assessee stands partly allowed

ITA 4888/MUM/2024[2020-21]Status: DisposedITAT Mumbai27 Feb 2025AY 2020-21

Bench: Smt. Beena Pillai () & Shri Renu Jauhri ()

Section 143(3)Section 144BSection 144C(13)Section 153Section 37Section 92C(1)

Appellant prays that the said international transaction ought to be considered at arm's length. 6. Ground No. 6-Short grant of Tax Deducted at Source ('TDS') credit On the facts and in the circumstances of the case, the learned AU has erred in granting short TDS credit ... various projects conducted by the assessee. The assessee also paid a certain amount as interest for the delay in the payment of Tax Deducted at Source (TDS). All these expenses were cross-charged by the assessee to Tesco Stores Limited, UK who reimbursed the same at cost, without any mark

Siemens Mobility Gmbh, Germany vs. Assistant Commissioner of Income Tax(International Tax), 4(2)(1), Mumbai

The appeal of the assessee is partly allowed

ITA 4713/MUM/2023[AY 2021-22]Status: DisposedITAT Mumbai27 Feb 2025

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Nitesh Josh a/w Bhavin

Section 143(3)Section 234ASection 270A

above, on the facts and circumstances of this case, and in law, the AO erred in not granting credit for tax deducted at source on accrual basis when the income has been assessed to tax on accrual basis thereby granting short credit of tax deducted at source amounting ... credit of tax deducted at source has been granted of Rs. 6,05,73,450 in the Computation Sheet as against Rs. 7,93,17,700. Thus, the credit of tax deducted at source on accrual basis is consequential only in case it is upheld that the corresponding income

Nexion Surfaces Pvt. Ltd., Lalpar, Gungan, Rajkot vs. The ACIT Cir-1(1), Rajkot

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 692/RJT/2024[2023-24]Status: DisposedITAT Rajkot26 Feb 2025AY 2023-24

Bench: Dr. Arjun Lal Saini, Am. & Dinesh Mohan Sinha, Jm

For Appellant: Shri Dhinal Shah, Ld. ARFor Respondent: Shri Shramdeep Sinha, Ld. CIT (DR)

Section 139(1)Section 143(1)

transaction related to the demerged undertaking that took place during the financial year — 2022-23 were executed in the name of NIPL. The tax deducted at source (“TDS”) and tax collected at source (“TCS”) are in the PAN of NIP. Further the advance tax was also paid ... NSPL and also computed after giving effect to such a demerged order. As the undertaking was transferred from NIPL to NSPL, all the tax deducted at source, tax collected at source and advance tax reported/paid in PAN and TAB of NIPL are claimed in the tax computation of NSPL

Tomorrow Capital Enterprises Private Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 7(3), Mumbai

In the result, both the appeal

ITA 6990/MUM/2024[2021-22]Status: DisposedITAT Mumbai25 Feb 2025AY 2021-22

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Ravikant PathakFor Respondent: 25/02/2025

Section 143(1)

short the Act) was issued on 13.11.2022 was issued on 13.11.2022, wherein certain credit for wherein certain credit for the tax deducted at source the tax deducted at source (TDS) was not granted. Detail of the TDS was not granted. Detail of the TDS not granted is reproduced ... petitioner is not entitled to the credit of the tax fact that the petitioner is not entitled to the credit of the tax deducted at source for the non deducted at source for the non-issuance of the TDS certificate by issuance of the TDS certificate by the respondent No.6

Tomorrow Capital Enterprises Private Limited, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 7(3), Mumbai

In the result, both the appeal

ITA 6989/MUM/2024[2022-23]Status: DisposedITAT Mumbai25 Feb 2025AY 2022-23

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary ()

For Appellant: Mr. Ravikant PathakFor Respondent: 25/02/2025

Section 143(1)

Rabo Shared Services Private Limited, Mumbai vs. Addl/Jt/Dy/Asstt/CIT/ITO/NFAC Delhi, Delhi

In the result, the appeal of the assessee is dismissed

ITA 489/MUM/2022[2017-18]Status: DisposedITAT Mumbai25 Feb 2025AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2017-18 Rabo Shared Services Pvt. Ltd., Add./Joint/Dy./Asst. Cit \/Ito, 20F, Tower A Peninsula National E-Assessment Centre, Vs. Business Park, Senapati Bapat Delhi. Marg, Lower Parel, Mumbai-400013. Pan No. Aaccr 5316 H Appellant Respondent

For Appellant: NoneFor Respondent: 24/02/2025

Section 92C

final assessment for availing business support services in the final assessment order. Ground 4: Non Ground 4: Non-grant of credit for tax deducted at source grant of credit for tax deducted at source (TDS) and advance tax (TDS) and advance tax On the facts and circumstances of the case

Esm Group Inc, Delhi vs. DCIT, Circle- 1(2)(2), International Taxation, Delhi

In the result, the appeal of the assessee in ITA No

ITA 9365/DEL/2019[2008-09]Status: DisposedITAT Delhi25 Feb 2025AY 2008-09

Bench: Shri Vikas Awasthy & Shri Naveen Chandra[A.Y 2008-09] M/S Esm Group Inc. Vs. The Dy.C.I.T Suite 118 N, 300, Corporate Park Circle -1(2)(2) Way Amherst, New York International Taxation New Delhi Pan: Aacce 4072 H (Applicant) (Respondent) Assessee By :Shri Sudhir Kumar Dash, Ca Department By :Ms. C. Chandra Kanta, Cit-Dr Date Of Hearing : 29.11.2024 Date Of Pronouncement : 25.02.2025

For Appellant: Shri Sudhir Kumar Dash, CAFor Respondent: Ms. C. Chandra Kanta, CIT-DR

Section 143(3)Section 144CSection 144C(3)Section 148Section 234ASection 234BSection 9(1)(vii)

234A, 234B& 234C a) The Ld AO has applied interest under 234B& 234C without giving credit of the prepaid taxes and credit of tax deducted at source. b) That in the facts and circumstances of the case & in law, the Ld AO erred in levying interest u/s 234B

Hcc Cp Pl Jv, Hyderabad vs. Income Tax Officer, Ward-14(1), Hyderabad

In the result, the appeal of the assessee is allowed

ITA 1005/HYD/2024[2018-19]Status: DisposedITAT Hyderabad24 Feb 2025AY 2018-19

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Bleassessment Year: 2018-19 Hcc Cp Pl Jv, Vs. The Income Tax Officer, Ward –14(1), Hyderabad. Hyderabad. Pan : Aaaah5541G. (Assessee) (Respondent) Assessee By: Shri Gvn Hari, Advocate (Appeared Through Hybrid Mode) Revenue By: Shri Srinath Sadanala, Sr.Dr Date Of Hearing: 06.02.2025 Date Of Pronouncement: 24.02.2025

For Appellant: Shri GVN Hari, AdvocateFor Respondent: Shri Srinath Sadanala, Sr.DR

Section 194CSection 199Section 238Section 238(1)

source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, Page 6 of 8 AAAAH5541G- HCC CP PL (JV) A.Y. 2018-19 ITBA/AST/S/143(3)/2020-21/1031015722(1) shall be given ... source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee. Since the assessee has distributed the contract

Dhananjay Sanjiv Rawal, Mumbai vs. ITO, Ward, 17(2)(1), Mumbai

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 39/MUM/2025[2020-21]Status: DisposedITAT Mumbai21 Feb 2025AY 2020-21

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Dhananjay Rawal, ARFor Respondent: 11.02.2025

Section 143(1)

amount collected is required to be paid to the Government within the time limit prescribed. Section 199 of the Act provides that, any tax deducted at source under the provisions of Chapter XVII and paid to Central Government shall be treated as payment of tax on behalf of the person ... which was not paid to the Central Government. The payee had filed the return of income wherein he had claimed credit for such taxes deducted at source by the payer. In the intimation issued 7 ITA No.39/Mum/2025 - Dhananjay Sanjiv Rawal u/s 143(1) of the Act, the AO/CPC had denied

Jamshed R Bilimoria, Mumbai vs. ITO-19(1)(5), Mumbai

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes

ITA 6066/MUM/2024[2023-24]Status: DisposedITAT Mumbai21 Feb 2025AY 2023-24

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2023-24 Jamshed R Bilimoria, Ito Range 19(1)(5), C/O Kalyaniwalla & Mistry Llp Room No. 602, 6Th Floor Piramal Vs. 2Nd Floor, Esplanade House 29 Chambers Lalbaug, Hazarimal Somani Marg, Fort, Mumbai-400012. Mumbai-400001. Pan No. Aappb 8124 R Appellant Respondent

For Appellant: Mr. M M GolvalaFor Respondent: Ms. Kanupriya Damor, Sr. DR

Section 161(1)Section 199

total income wherein the CPC accepted the total income wherein the CPC accepted the total income returned but credit for the claim of tax deducted at source returned but credit for the claim of tax deducted at source returned but credit for the claim of tax deducted at source Jamshed ... issue before us pertains to the denial of credit for Tax The issue before us pertains to the denial of credit for Tax Deducted at Source (TDS) to the a Deducted at Source (TDS) to the assessee, who is the sole ssessee, who is the sole beneficiary of a trust

DCIT 5(1)(1), Mumbai vs. Air India Ltd, Mumbai

In the result, the appeals filed by the assessee

ITA 4484/MUM/2018[2012-13]Status: DisposedITAT Mumbai21 Feb 2025AY 2012-13

Bench: Shri Baskaran Br, Accountat Member & Shri Pavan Kumar Gadale

For Appellant: Shri Madhur Agrawal.ARFor Respondent: Smt Sailaja Rai, CIT DR

Section 143(2)Section 14ASection 250Section 44A

interest paid on account of late payment of fringe benefit tax could also not be allowed to the assessee. However, the amount of tax deduction at source [TDS] represents the amount of income tax of the third parties party on whose behalf the payment was deducted by the assessee & paid ... section 28. Instead, it is the tax on the profits and gains of the business of the recipient. In view of this, the tax deducted at source (TDS) is not like the income tax which is required to be paid on profits & gains chargeable to tax under section

Deputy Commissioner of Income Tax, Circle-1, Bareilly vs. Ms Varuna Warehousing Private Limited, Bareilly

In the result, the appeal of the Revenue stands dismissed

ITA 276/LKW/2024[2020-21]Status: DisposedITAT Lucknow20 Feb 2025AY 2020-21

Bench: Shri Kul Bharat & Shri Anadee Nath Misshraassessment Year: 2020-21 Dcit, Circle-1 M/S Varuna V. Aaykar Bhavan, Kamla Nehru Warehousing Pvt Ltd Marg, Rampur Garden, Civil Shyam Ganj, Near Amar Lines, Uttar Pradesh-243001. Ujala Press, Uttar Pradesh-243005. Pan: Aaecc5529M (Appellant) (Respondent) C. O. No. 23/Lkw/2024 (In Arising Out Of Ita. No. 276/Lkw/2024) Assessment Year: 2020-21 M/S Varuna Warehousing Pvt Dcit, Circle-1 V. Ltd Aaykar Bhavan, Kamla Shyam Ganj, Near Amar Ujala Nehru Marg, Rampur Press, Uttar Pradesh-243005. Garden, Civil Lines, Uttar Pradesh-243001. Pan: Aaecc5529M (Appellant) (Respondent) Appellant By: Shri Rakesh Garg, Adv Respondent By: Shri Sanjeev Krishna Sharma, Addl. Cit(Dr) Date Of Hearing: 11 02 2025 Date Of Pronouncement: 20 02 2025 O R D E R

For Appellant: Shri Rakesh Garg, AdvFor Respondent: Shri Sanjeev Krishna Sharma, Addl

Section 119(2)(b)Section 154Section 244

only Rs.52,95,646/- as uploaded by the assessee. Moreover, it is incumbent upon the assessing authority to ensure that the credit of tax deducted at source has been given as per Form No. 26AS. The Assessing Officer has not brought any materials to rebut this fact. Even otherwise also ... view that the Ld. CIT(A) was justified in directing the Assessing Officer to give credit to the tax deducted at source. Therefore, we do not see any reason to interfere in the finding of the Ld. CIT(A). The grounds of appeal of the Revenue are hereby dismissed

The Bavla Group Seva Sahakar Mandali Ltd, Bavla, Ahmedabad vs. ITO, Ward 3(2)(5), Ahmedabad, Ambawadi

In the result, the appeal of the assessee is allowed

ITA 2165/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad20 Feb 2025AY 2017-18

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri P D Shah, A.RFor Respondent: Shri Ravindra, Sr. DR

Section 194ASection 194A(3)(v)Section 80PSection 80P(2)(d)

concerned, on perusal of section 194A (3) of the Act, it appears that it provides for exemption from deducting Tax Deducted at Source ['TDS' for short] from the income on interest other than interest on securities as the cooperative societies other than cooperative banks meaning thereby that the cooperative banks

Sohamnagar Co-Op Housing Society Vibhag-III, Ahmedabad vs. The ITO, Ward-3(3)(5), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 2147/AHD/2024[2020-21]Status: DisposedITAT Ahmedabad20 Feb 2025AY 2020-21

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Samir Vora, A.RFor Respondent: Shri Ravindra, Sr. DR

Section 194A(3)(v)Section 250Section 80PSection 80P(2)(d)