| Question And Answer | |
|---|---|
| Subject: | Credit of TDS |
| Category: | Income-Tax |
| Querist: | prakash |
| Answered by: | Research Team |
| Tags: | Credit of TDS, TDS credit |
| Date: | January 24, 2024 |
Assessee is promoter and builder and offering the income from business and profession by following percentage completion method , However while filling the Return of Income for A. Y. 2023-24 has claimed the entire TDS made by the flat purchasers against the income offered. CPC U/SEc. 143(1)(a) has disallowed such claim and allowed the proportionate TDS as per the Income offered in the return and raised the demand by adding interest U/SEc. 234B of the Act
1. Whether this action of the CPC is justified under the Act and
2. any other remedy which assessee can exercise in support of the credit of claim of full TDS, even though the percentage completion method is followed
The CPC is not justified in allowing the proportionate credit . The assesee can rely on section 198 which treats the tax deducted is income received . The assessee can make an application under section 154 of the Act and also application under section 264 of the Act . In case application under section 264 is reject the assessee can file writ before the High Court .