Rahul Dinesh Bajpai Vs Dy. Director of Income Tax (ITAT Mumbai)
If the property is jointly owned by husband and wife and the entire TDS is deposited in the name of husband, the entire TDS credit should be allowed to the husband, provided the wife does not claim any part of TDS.
Facts of the case:
The assessee sold an immovable property jointly owned by him and his wife. The capital gain from sale was offered in equal proportions by both the assessee and his wife. However, since the TDS was deposited solely in the name of the assessee, the entire TDS was claimed by the assessee alone. The Centralized Processing Centre (CPC) allowed TDS credit only to the extent of assessee’s share and disallowed the balance TDS. The assessee filed an appeal before CIT(A), which upheld the actions of CPC.
Judgement:
The Hon’ble ITAT held that merely because the property was jointly owned and the capital gain was offered by both the assessee and his wife, it cannot be the sole reason for disallowing the assessee’s claim for TDS credit. The Hon’ble ITAT directed the AO to verify whether any part of TDS was claimed by the wife. If no TDS credit is claimed by her, the entire TDS should be allowed to the assessee.
