Tax credit for tax withheld cannot be denied to the payee upon subsequent refund of the TDS to the deductor

Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Lucent Technologies GRL LLC Vs DCIT (ITA No. 6353 /Mum/09) (Judgment date: 31 December 2010, Assessment Year: 2002- 03) held that the credit for tax withheld cannot be denied to the taxpayer on the basis of subsequent grant of tax refund to the tax deductor when all the obligations under the provisions of the Income-tax Act, 1961 (the Act) relating to tax deduction are duly complied with and TDS certificate has been issued in accordance with the provisions of the Act. Facts of the case • The taxpaye...