Form 26AS Is Key: ITAT Restores TDS Credit Despite No Claim in Return

Samhith Fintech Pvt Ltd Vs DCIT (ITAT Hyderabad)

Procedural lapse can’t forfeit TDS credit: ITAT directs grant of Form 26AS credit despite no claim in return

Hyderabad ITAT  allowed the assessee’s appeal &  set aside denial of TDS credit of ₹6.66 lakh. Tribunal noted that TDS was duly deducted in the name of the assessee &  clearly reflected in Form 26AS, but credit was denied by CPC &  upheld by CIT(A) solely because the assessee had inadvertently failed to claim the credit in the return of income.

ITAT held that section 199 of the Act creates a substantive right to TDS credit once tax is deducted &  paid to the Central Government, &  such right cannot be defeated by a mere procedural lapse like non-claim in the return. Rule 37BA cannot be interpreted to override section 199. However, ITAT clarified that before granting credit, AO must verify that the corresponding income has been offered to tax. Accordingly, the matter was restored to the file of AO with direction to verify Form 26AS &  allow due TDS credit after necessary verification. Appeal was allowed for statistical purposes

FULL TEXT OF THE ORDER OF ITAT HYDERABAD

This appeal is filed by M/s. Samhith Fintech Private Limited (“the assessee”), feeling aggrieved by the order passed by the Learned ADDL/JCIT (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. First Appellate Authority”) dated 30.06.2025 for the A.Y.2024-25.