March 2023
What is applicable for TDS should also be applicable for TCS and merely because there is no Rule identical to Rule 37BA(2)(i) of the Rules with reference to TCS provisions, it cannot be the basis for the Revenue to deny the legitimate claim for credit of TCS made by an assessee
57 Hotel Ashok Garden vs. ITO
ITA Nos. 12 to 15 / Bang./2023
A.Ys.: 2016-17 to 2019-20
Date of Order: 6th February, 2023
What is applicable for TDS should also be applicable for TCS and merely because there is no Rule identical to Rule 37BA(2)(i) of the Rules with reference to TCS provisions, it cannot be the basis for the Revenue to deny the legitimate claim for credit of TCS made by an assessee.
FACTS
The assessee, a firm, engaged in the business of liquor bar and restaurant, claimed credit of TCS paid at the time of purchase of liquor in each of the four assessment years under consideration. The TCS certificate was in the name of Raju Shetty, a partner of the assesse firm, who held the license in the business of selling liquor. Since Raju Shetty held the license, the Karnataka State Beverages Corporation Ltd, (KSBCL) from whom liquor was purchased issued the certificate of TCS in the name of Raju Shetty but the credit wherefor was claimed by the assessee firm in the return of income filed by it.
In an intimation, the credit for TCS claimed by the assessee firm was denied. The assessee filed an application for rectification under section 154 of the Income tax Act, 1961 (Act) contending that the credit ought to be granted to the assessee firm. Along with the application, indemnity of the partn
