Case Law Details
Vishal Pachisia Vs ITO (ITAT Kolkata)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Kolkata has allowed the appeal of an individual, Vishal Pachisia, against the National Faceless Appeal Centre, Delhi. The core issue was the non-credit of TDS of Rs. 76,200/-, deducted from the salary but not deposited by the employer, due to the absence of the assessee’s name in Form 26AS. The decision provides a window to make the necessary corrections to reflect the appropriate TDS credit.
Analysis: The appellant’s sole grievance was the failure of the CIT(A) to instruct the Assessing Officer to credit the TDS that had been deducted but not deposited by the employer. The case was not adjourned as it was considered a small issue, and the ITAT saw fit to hear the appeal immediately.
Upon careful examination, the ITAT identified that the TDS was not appearing under the assessee’s name in Form 26AS, possibly due to the employer’s failure to deposit the sum or a wrong PAN fed in the TDS return. Recognizing this, the Tribunal allowed the assessee an opportunity to rectify the error, either by correcting the TDS return or by ensuring that the employer deposited the TDS and filed it accordingly.
This decision acknowledges the possibility of genuine errors in tax proceedings and offers flexibility in correction, emphasizing fairness and justice.
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