Denial of credit of TDS which duly pertains to assessee not permissible

Sanjeev Rajendra Pandit Vs Assistant Director of Income Tax (CPC) (ITAT Mumbai)

ITAT Mumbai held that the Department cannot swallow tax paid by the assessee and deny credit of tax deducted, which pertains to the assessee. AO cannot simply decline the credit of TDS. AO directed to allow the TDS credit after due verification.

Facts- In the return of income filed, the assessee claimed credit of tax deducted at source (TDS) of ₹3,93,891/- which included TDS credit of ₹1,78,032/ – in respect of rental income from property at Navbharat Chambers and TDS of ₹64,458/- in respect of dividend income disbursed by M/s Tata Steel Ltd. In processing order passed u/s 143(1) of the Income-tax Act, 1961 (in short ‘the Act’) dated 28.03.2022, AO of Central Processing Centre, Bangalore restricted the TDS credit to ₹1,63,196/ – in respect of TDS on rental income from property at Navbharat Chambers as against credit of ₹1,78,032/- claimed in the return of income. AO also did not allow credit of the TDS of ₹64,458/- in respect of “dividend” income offered to tax under the head ‘income from other sources.

Aggrieved with the denial of credit of TDS of ₹92,792/-, the assessee filed appeal before the Ld. CIT(A), however, could not succeed.
Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal

Please become a Premium member. If you are already a Premium member, login here to access the full content.