Daiwa Capital Markets India Private Limited Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that TDS credit duly reflected in Form 26AS cannot be denied just because of some procedural lapse. Accordingly, order is set aside and the present appeal is allowed.
Facts- This appeal is filed by the appellant/assessee against the order of Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi, passed under section 250 of the Income Tax Act, 1961 dated 10.06.2025 for the A.Y. 2013-14, wherein denial of TDS credit by the AO vide order giving effect dated 29.05.2023 was confirmed by the Ld. CIT(A) on the ground that there was no valid claim made in the return of income regarding additional TDS claim.
Conclusion- Held that it is statutory as well as constitutional obligation of the revenue to give the TDS credit duly reflected in Form 26AS and the claim of the assessee cannot be denied just because of some procedural lapse on his part and in the light of various provision of the Income Tax Act, the assessee has to be granted TDS credit, deducted and deposited before finalizing the assessment. Admittedly in this case the assessee has made a claim for getting tax credit of TDS amounting to Rs. 73,24,074/-at the time of order giving effect by the AO which is nothing but the finalization of the original assessment proceedings. Therefore, we are of the considered opinion that the assessee has made the claim during the assessment proceedings which AO was duty bound to consider and allow the TDS amount credit. Thus, we are of the considered opinion that the Assessing Officer has unjustifiably denied credit of the TDS amount and the same should have been refunded at the earliest by the AO as the same has been reflected in Form 26AS from the beginning at the time of completion of assessment proceedings. Therefore, the impugned order suffers from illegality and is not sustainable and is accordingly set aside.
