Tan Boon Hoe Vs ITO (ITAT Mumbai)
This case concerns an appeal before the Income Tax Appellate Tribunal (ITAT) Mumbai relating to the assessee’s claim for credit of tax deducted at source (TDS) amounting to Rs. 14,78,140 for Assessment Year (AY) 2011-12. The assessee, who was employed with Urban Transit Private Limited during the relevant financial year, earned salary income of Rs. 52,70,290 on which TDS of Rs. 14,78,140 was deducted and deposited by the employer. However, while processing the return under Section 143(1), the Centralized Processing Centre did not grant the corresponding TDS credit. The assessee appealed to the Commissioner of Income Tax (Appeals), submitting evidence including the employment contract, Form 16, salary slips, and bank statements. The CIT(A) accepted that the employer had deducted and deposited the TDS, held that Section 199 mandates TDS credit in the year of taxable income, and directed the Assessing Officer to verify Form 26AS and grant credit accordingly. The appeal was allowed for statistical purposes.
Subsequently, the AO passed an order on 28 November 2024 granting only Rs. 5,31,197 as TDS credit instead of the claimed Rs. 14,78,140. The assessee then filed a rectification application, asserting that the earlier directions should have resulted in full credit. The CIT(A) reiterated that it was the AO’s responsibility to verify and grant TDS credit, again directing verification of prepaid taxes and appropriate credit. The rectification application was disposed of on 30 June 2025.
