Assessee Is Eligible For Credit Of TCS Paid U/S 194Q If There Is No Shortfall In Payment Of TDS: Vishakhapatnam ITAT
On finding that there is no short fall of TDS and the assessee is eligible to get credit of the entire amount, the Visakhapatnam ITAT directed the AO to grant credit of the entire amount deducted as tax at source u/s. 194Q of the Income Tax Act. The Bench of Duvvuru Rl Reddy (Judicial Member) observed while referring the CBDT Circular No. 452 that “kaccha arahtias are concerned,...
On finding that there is no short fall of TDS and the assessee is eligible to get credit of the entire amount, the Visakhapatnam ITAT directed the AO to grant credit of the entire amount deducted as tax at source u/s. 194Q of the Income Tax Act.
The Bench of Duvvuru Rl Reddy (Judicial Member) observed while referring the CBDT Circular No. 452 that “kaccha arahtias are concerned, the turnover does not include the sales effected on behalf of the principals and only the gross commission has to be considered for the purpose of 44AB.” (Para 5)
As per the brief facts of the case, the assessee filed its return of income which was processed and accepted. However, the AO while processing the return filed by the assessee observed that the assessee had claimed TDS of Rs. 72,218/-. Considering the facts and circumstances of the case, the AO applied Rule 37BA of the Income Tax Rules, 1962 and restricted the claim of the assessee to an extent of Rs. 9,583/- only and passed Intimation.
The CIT(A) partly allowed the assessee's appeal after considering the submission of the assessee.
The Bench noted that Kaccha Arahtias turnover includes only the gross commission and not the sales effected on behalf of their principals
The Bench observed that the assessee is only a licensed commission agent in Agricultural Market Committee Yard, which is formed under the rules and regulations of the Government of Andhra Pradesh.
The Bench further observed that the Circular issued by the CBDT squarely applies to the assessee and hence the assessee is acted only as an agent (kaccha arahtia).
Therefore, on finding that assessee is eligible for to get credit of the entire amount deducted as tax, ITAT allowed assessee's appeal.
Counsel for Appellant/ Assessee: GVN Hari
Counsel for Respondent/ Revenue: Dr. Aparna Villuri
Case Title: Kanjula Rajagopal Reddy Firm verses ITO
Case Number: I.T.A. No.59/Viz/2024