TDS Credit Even if Not in Form 26AS – CIT(A)’s Direction for Verification Upheld; Revenue Appeal Dismissed

DCIT Vs Incred Financial Services Limited (ITAT Mumbai) ITAT Mumbai upheld the order of CIT(A) directing AO to grant TDS credit after verification where short credit of ₹1.68 crore arose due to mismatch between ITR claim and Form 26AS. The assessee had claimed TDS of ₹22.20 crore, but only ₹20.61 crore was allowed in processing u/s 143(1). CIT(A) directed AO to allow TDS reflected in Form 26AS and also consider TDS deducted but not appearing in 26AS, subject to verification and indemnity bond, relying on judicial precedents that credit should not be denied merely because deductor failed ...