Rohini Gautambhai Shah Vs ITO (ITAT Ahmedabad)
TDS Credit Allowed to Legal Heir – Income Taxed in Same Hands Requires Corresponding Credit – ITAT Ahmedabad
The assessee, a super senior citizen, included professional income of her deceased husband in her return and claimed TDS credit of ₹1.16 lakh deducted in his PAN. CPC and CIT(A) denied the credit on the ground that TDS pertained to the deceased husband’s PAN and the return was not filed in legal heir capacity.
ITAT admitted additional evidence, including death certificate and portal records. The screenshot on page 5 showed that the assessee was recognized as the legal heir and the deceased PAN had been surrendered. Tribunal observed that Revenue cannot tax income in assessee’s hands while denying corresponding TDS credit, as it violates settled principles and Article 265 of the Constitution.
Accordingly, ITAT directed the AO to grant TDS credit relating to late husband’s income and issue refund with interest after verification. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee as against the appellate order dated 18-09-2025 passed by the Additional Commissioner of Income Tax/JCIT (Appeals)-4, Mumbai arising out of the rectification order passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2020-21.
