Section 238 — the law in short
What the courts have decided on section 238, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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HCC CP PL JV v ITO
ITATHelps taxpayerValidity unconfirmed
The Assessing Officer has withdrawn my joint venture's TDS credit, saying section 238(1) gives the refund to the constituent partners and not to the JV. Can he do that?
Not on these facts. Section 238(1) transfers the right to refund only where the income of one person is in fact included in the total income of another; where the joint venture itself credited the gross contract receipts as its revenue and debited the back-to-back payments to its constituents as expenses, the profit or loss from the contract was disclosed in the JV's own hands, so section 238(1) is not attracted and credit under Rule 37BA(1) follows the person to whom the payment was made and in whose name the tax was deducted.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.