TDS Deducted but Not Deposited: Assessee Still Gets Credit

Nisar Ebrahim Ookabhoy Vs ITO (ITAT Mumbai) Deductee Can’t Be Penalised for Deductor’s Default: ITAT Mumbai Directs TDS Credit Despite 26AS Mismatch ITAT Mumbai (SMC Bench) in Nisar Ebrahim Ookabhoy vs ITO (ITA No. 6638/Mum/2025, AY 2020-21, order dated 24.12.2025) has allowed the assessee’s appeal, holding that TDS credit cannot be denied merely because the deductor failed to deposit tax and the credit does not reflect in Form 26AS. The Assessee had let out a flat under a leave & license agreement providing for 10% TDS on rent. Though the licensee deducted ₹1,47,600, it deposited ...