Sonali Dhawan Vs ITO (ITAT Mumbai)
ITAT Mumbai held that denial of TDS credit merely because of non-reflection in Form 26AS is not justified since there could be varied technological or other reasons where the relevant data pertaining to the assessee doesn’t get reflected in Form 26AS.
Facts- During the impugned assessment year, assessee has sold a house property on which payer company has deducted TDS of Rs. 48 Lakhs. However, while granting TDS credit, the assessee has not been granted the TDS credit of Rs. 47,99,525/-, out of Rs. 48 lakhs claimed by the assessee in her return of income. As to the reasons for denial of TDS credit, the Ld.AR submitted that the CPC has stated that there is a mismatch with Form 26AS and Form-26AS contains only partial amount of TDS and, therefore, the assessee has been denied the credit of TDS so claimed in the return of income.
Conclusion- Held that there could be varied technological or other reasons where the relevant data pertaining to the assessee doesn’t get reflected in Form 26AS at the relevant point in time. The CPC may have the limitation to look beyond what has been claimed by the assessee and reflected in IT system more particularly in Form 26AS. At the same time, where the assessee felt aggrieved brings the relevant evidence on record as in the instant case, the assessee cannot be denied her lawful right in terms of credit of TDS where the same has been duly deducted and deposited subject of course to necessary verification. In the instant case, we have been informed that for TDS on sale of property, the prescribed form is the tax payer receipt which contains the requisite particulars of tax deposited unlike Form 16/16A issued in other cases. In light of the same, in the instant case, we direct the AO to verify the taxpayer receipt issued by Canara Bank dated 17-06-2022 for an amount of Rs 48 lakhs as available in assessee’s paper book page 119 and where the same is found to be in order, allow the necessary credit of TDS amounting to Rs 48 lakhs so claimed by the assessee in her return of income.
