TDS credit denial merely because the same is in the name of deceased person unsustainable

Sh. Varinder Pal Vs ITO (ITAT Amritsar)

ITAT Amritsar held that as income of the deceased person offered to tax, credit of TDS cannot be denied merely because it appears in the name of deceased mother. A particular income cannot be taxed twice under the law.

Facts- The appellant being the legal heir has offered the income of his deceased mother at Rs.3,53,057/-in his Income Tax Return and consequentially has paid additional tax of Rs.74, 295 (97492-23197) to the department. It was argued that admittedly the income on which TDS has been deducted had been offered for tax in the return of income filed by the assessee as assessed u/s 143(1) of the Income Tax Act, 1961 and therefore corresponding TDS deducted belongs to the assessee and credit of TDS. The Ld. Counsel contended that where the income of the deceased mother is offered for taxation, then the appellant is entitlement of credit of such TDS.

Conclusion- It is admitted facts on record that the appellant’s deceased mother’s income on which TDS was deducted had been offered for tax in its return of income and assessed u/s 143(1) of the Income Tax Act, 1961 and thus, the credit of TDS cannot be denied merely because it appears in the name of deceased mother. As per law and in principle the tax on particular income can be charged once only. In the instant case, the tax has already been deducted by way of TDS by the revenue and thus, the confirmation of the order of the lower authorities would be denial of TDS claim to the appellant would result into double taxation of the same income. In our view, a particular income cannot be taxed twice under the law and therefore, as in the present case, the appellant is entitlement for the credit of TDS deducted on the disputed income. Alternatively, the assessee shall be eligible to seek permissible from the CCIT to file belated return in the name of disease person (Appellants mother) for the claim of TDS under Rule 34BA of Income Tax Rules and thereby withdrawing the diseased mother income shown in its return.

FULL TEXT OF THE ORDER OF ITAT AMRITSAR

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