Suresh Viswanathan vs DCIT (ITAT Mumbai)
Full TDS Credit May Be Allowed to One Co-owner if Other Has Not Claimed – ITAT Remands
Assessee & spouse jointly sold property & offered capital gains equally. However, entire TDS was deducted in assessee’s name. CPC restricted TDS credit proportionately u/s 143(1), which was upheld ex-parte by CIT(A).
Before ITAT, assessee contended that:
- Wife has offered her share of capital gains
- Paid tax separately
- Has not claimed any TDS credit
ITAT held:
- No double claim of TDS → no revenue loss
- If wife has not claimed TDS, entire credit can be given to assessee in whose name TDS deducted
Matter remanded to AO for verification of non-claim by co-owner & allow full TDS credit accordingly.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. This appeal filed by the assessee is directed against the order dated 27.11.2025 passed by the Ld. Commissioner of Income Tax (Appeals), Delhi [“‘CIT(A)’] for the Assessment Year 2023-24, arising from the intimation issued under section 143(1) of the Income-tax Act, 1961 (‘the Act”) by CPC, Bengaluru.
2. Briefly stated, the facts of the case are that the assessee is an individual who filed his return of income for the year under consideration on 31.08.2023 declaring a total income of Rs.1,56,88,610/-. During the relevant previous year, the assessee along with his wife sold a residential flat jointly owned by them for a total consideration of Rs.1,74,00,000/-. The capital gains arising from the said transaction were offered to tax by the assessee and his wife in equal proportion.
