Lovely Das Vs A/JCIT (ITAT Kolkata)
Legal heir entitled to TDS credit on income assessed in her hands; Credit for TDS cannot be denied solely because it appears in name of deceased
The disuse involved is Whether the assessee (wife) is entitled to TDS credit in her own return for income earned and TDS deducted in the name of her deceased husband, where the corresponding income was offered by her in her ITR.
Assessee’s husband, passed away on 15.06.2016. Assessee succeeded to his proprietorship concern & in her returns from AY 2019–20 to AY 2022–23, the assessee offered her own income plus income received in the name of her late husband (interest & business income). Assessee claimed TDS credit part in her name & part in her husband’s name. CPC granted TDS credit only for TDS appearing in her name & disallowed TDS in husband’s name
Appeals before CIT(A) were dismissed on the ground that TDS in another PAN (husband’s) can’t be allowed unless Form 26AS is updated or return filed as legal heir.
Tribunal noted that assessee rightfully offered the income received in the name of her late husband. Citing Rule 37BA(2) & 37BA(3) of the Income Tax Rules:, held that TDS credit should be allowed to the person in whose hands the income is assessable.
