Refund of TDS credit cannot be denied irrespective of year of appearance in form 26AS

GSR Ventures Private Limited Vs DCIT (ITAT Hyderabad)

Once any TDS is effected in accordance with the provisions of the Act and paid to the Central Government, such an amount shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, and, therefore, a credit of the same must be given to the person on whose behalf such TDS was made, irrespective of the year to which it relates.

ITAT held that the refund of TDS though in fact was effected during the AY.2017-18 cannot be denied to the assessee when it was appearing in Form-26AS in the AY.2018-19 and claimed by the assessee. With this observation, we direct the Ld. AO to allow the claim of the assessee in respect of the TDS amount of Rs.12,57,976/- during the AY.2018-19.

FULL TEXT OF THE ORDER OF ITAT HYDERABAD

Aggrieved by the order dated 29/12/2021 for the AY.2018-19, passed u/s.250 of the Income Tax Act, 1961 (“the Act”) in the case of M/s.GSR Ventures Private Limited (“the assessee”), the assessee preferred this appeal, praying for refund of the TDS credit, in respect of the tax deducted during the Financial Year 2016-17, but remitted to the Central Government and reflected in the Form-26AS during the AY 2018-19.

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