The Delhi ITAT held that once the income is not liable to tax credit for tax on such receipt cannot be denied.
The assessee company filed return for the assessment year 2017-18 on 31.08.2017 declaring NIL income and claimed refund of Rs.1,26,71,067/- being TDS.
The Assessing Officer completed the assessment under section 143(3) of the Income Tax Act, 1961 (the Act) on 11.03.2019 accepting the income returned.
However, the claim for refund of TDS was denied.
The assessee contended that credit for TDS was denied on an incorrect premise that corresponding income was not offered to tax by the assessee in its return of income for the year under consideration.
The assessee contended that the assessee had duly disclosed the revenue from the contract with IRL in its return of income and or during the course of assessment proceedings more particularly vide submission dated 10th September, 2018 and 25.11.2019.
The tribunal allowed the credit for TDS since the Assessing Officer assessed the income of the assessee during the year under consideration at NIL.
DCIT V/s Siemens International Trading Limited