Case Law Details
Grant of TDS Credit despite non reflection in 26AS Statement and Non Production of TDS Certificate
The dispute is regarding credit for TDS. The credit of TDS has been denied to the assessee on the ground that the claim for TDS was no reflected in the computer generated form 26AS. The difficulty faced by the tax payer in the matter of credit of TDS had been considered by the Hon’ble High Court of Bombay in case of Yashpal Sahwney Vs. DCIT (Supra) in which it was held that even if the deductor had not issued TDS certificate, the claim of the assessee has to be considered on the basis of evidence produced for deduction of tax at source as the revenue was empowered to recover the tax from the person responsible if he had not deducted tax at source or after deducting failed to deposit with Central Government. Hon’ble High Court of Delhi in case of Court On Its Own Motion Vs. CIT (Supra) have also directed the department to ensure that credit is given to the assessee, where deductor had failed to upload the correct details in Form 26AS on the basis of evidence produced before the department. Therefore, the department is required to give credit for TDS once valid TDS certificate had been produced or even where the deductor had not issued TDS certificates on the basis of evidence produced by assessee regarding deduction of tax at source and on the basis of indemnity bond. We, therefore modify the order passed by CIT(A) on this point and direct the AO to proceed in the manner discussed above to give the credit of tax deducted at source to the assessee.
Grant of Interest on Interest of income Tax Refund
The dispute is regarding grant of interest on delayed payment of interest. In case the assessee has paid excess advance tax or excess TDS, the assessee is liable for refund with interest and in case the interest is not granted on the due date, the assessee is liable for further interest on interest, in view of the Judgment of Hon’ble Supreme Court in case of Sandvik Asia Ltd. Vs. CIT and others (Supra). We, therefore, direct the AO to allow the assessee interest on interest if due as per law in the light of Judgment of Hon’ble Supreme Court in case of Sandvik Asia Ltd. (Supra). In the result appeal of the assessee is allowed.
INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI
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