TDS CREDIT DISALLAOWED WHILE GIVING REFUND

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2010 Can you please give remedy on following case:-

Assessee is maintaining books of account on cash basis.

He has received actual interest and booked income on Govt Bond on redumption in FY 2007-08 (Actual receipt in Apr 07)

However On TDS certificate received, period mentioned is for FY 2006-07 being bond send for redeemption in that FY.

But actual amount received in next FY i.e 2007-08.

Income Tax officer is now disallowing this TDS in assesment of return of FY 2007-08 on the ground that FY mentioned on TDS is 2006-07

Deepak Goel

Deepak Goel (Expert)
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28 February 2010 You should have to consider interest income in which year income is due even you are adopting cash basis.

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2010 SIR ! I do not agree with you! As per Income tax act Hybrid system of accounting is not allowed. Either cash or mercantile basis to be followed. According to yr opinion Income tax dept will enjoy the TDS amt. That TDS amt belongs to assessee which he has not claimed in earlier any return also.

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M Prabhakar Menon

M Prabhakar Menon (Expert)
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03 March 2010 If the amount involved is substantial u may file an appeal within 30 days from the date of the AO before the CIT (Appeals)Alternatvely submit an application u/s 154 for rectification of mistake apparent from record this will give u one more opportunity to be heard.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2010 Can you give some Case Law or any other reference to go for appeal. As application u/s 154 already filed.