Antaash Sheikh Vs ITO (ITAT Bangalore)
ITAT Bangalore Grants TDS Credit to Employee – Dunzo’s Default Cannot Hurt Assessee- Salary Slips Sufficient Proof – Tribunal Allows Credit of Rs.13.14 Lakh TDS
ITAT Bangalore allowed assessee’s appeal & directed AO to grant TDS credit of Rs.13,14,694/-, which was deducted from salary by Dunzo Digital Pvt. Ltd. but not deposited with Government
Assessee, an employee of Dunzo Digital Pvt. Ltd., filed return declaring income of Rs.47,09,760/- & claimed TDS credit based on pay slips reflecting tax deduction. However, CPC while processing return u/s 143(1) denied the claim as the TDS did not appear in Form 26AS due to employer’s failure to deposit the same. CIT(A) directed AO to allow credit only if reflected in Form 26AS.
Before ITAT, assessee argued that salary slips & yearly statement clearly established deduction of TDS by employer & employee cannot be penalised for employer’s default. Revenue contended that credit could not be allowed in absence of 26AS reflection.
Tribunal noted that TDS is a statutory obligation of the payer & once tax has been deducted from employee’s salary, credit cannot be denied merely because employer failed to deposit it. It observed that Dunzo Digital Pvt. Ltd. was under CIRP proceedings before NCLT & though penalty & prosecution against employer were possible, employee’s right to TDS credit could not be defeated.
