Liebherr Werk Nenzing GMBH Vs ACIT (International Taxation) (ITAT Mumbai)
ITAT Mumbai: Denial of TDS Credit Unsustainable When Entries Duly Reflected in Form 26AS – AO Directed to Allow ₹9.04 Lakh Credit
Mumbai Tribunal has held that where tax deducted at source (TDS) is duly reflected in Form 26AS, denial of such credit on the ground of mismatch is unjustified.
Assessee, an Austrian tax resident, filed return declaring income of ₹2.33 Cr and refund claim of ₹9.61 lakh after claiming TDS of ₹32.99 lakh as per Form 26AS. CPC, while rectifying the intimation u/s 143(1), granted credit of only ₹23.95 lakh & denied balance ₹9.04 lakh citing mismatch with Form 26AS. CIT(A)/NFAC confirmed the denial.
Before the Tribunal, Assessee demonstrated that the disputed TDS credits from Adani Petronet Port Pvt. Ltd. (₹8.86 lakh), Karaikal Port Pvt. Ltd. (₹3.76 lakh) & Starlift Services Pvt. Ltd. (₹0.86 lakh) were clearly reflected in Form 26AS. Hence, CPC’s mismatch observation was factually incorrect.
Tribunal, after perusal of Form 26AS, found that the entries matched with Assessee’s claim & therefore directed AO to allow the balance credit of ₹9.04 lakh.
When TDS entries are duly reflected in Form 26AS, credit cannot be denied on technical mismatch grounds. AO must grant full relief in line with Form 26AS.
