Ravi Kumar Lakshmi Kanth Vs ITO (ITAT Bangalore)
Bengaluru ITAT: AO Must Verify and Grant Legitimate TDS Credit Instead of Denying It
The Bengaluru ITAT held that an assessee cannot be denied legitimate TDS credit merely because the credit is not fully reflected during reassessment proceedings. The assessee, a salaried employee, had claimed TDS credit of ₹6.61 lakh, but the Assessing Officer granted credit of only ₹5.72 lakh, resulting in a short grant of ₹89,239. The CIT(A) declined to adjudicate the issue, holding that the dispute did not arise from the reassessment order and advised the assessee to file a rectification application under section 154.
The Tribunal observed that the issue directly related to the assessment and directed the Assessing Officer to verify Form 26AS and allow the TDS credit of ₹89,239, provided the corresponding income had been offered to tax. The ITAT further clarified that even if the TDS credit is not reflected in Form 26AS, the Assessing Officer should not reject the claim outright. Instead, after granting the assessee an opportunity of being heard, the Assessing Officer should make necessary enquiries from the deductor and determine the assessee’s entitlement to the credit in accordance with law. The appeal was accordingly allowed, and the matter was restored to the Assessing Officer for fresh adjudication on the issue of TDS credit.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. ITA No. 501/Bang/2026 has been filed by Mr. Ravi Kumar Lakshmi Kanth, [the assessee-appellant], for Assessment Year 2018-19 against the appellate order dated 23 June 2025 passed by the National Faceless Appeal Centre, Delhi [Ld. CIT(A)]. By that order, the appeal filed by the assessee on 24 April 2023 against the reassessment order dated 28 March 2023 passed by the National Faceless Assessment Centre, Delhi, [the LD AO] under section 147 read with section 144B of the Income Tax Act, 1961, [The Act], was dismissed.
