Case Law Details
Nishant Anilbhai Shah Vs ITO (ITAT Ahmedabad)
Wrong TAN Typing Cannot Deny Genuine TDS Credit: ITAT Grants Relief for Technical Error in ITR
The Ahmedabad ITAT granted relief to the assessee after holding that a mere typographical error in mentioning the employer’s TAN in the income-tax return cannot result in denial of genuine TDS credit when taxes were actually deducted and deposited with the department.
The assessee had filed return within due date and fully discharged tax liability. However, while entering the employer’s TAN in the ITR, the correct TAN “PNES12481A” was mistakenly typed as “PENS12481A”. Due to this minor typing error, the system failed to grant TDS credit, resulting in tax demand of ₹1.28 lakh. Though the taxes deducted were clearly reflected in Form 16 and Form 26AS, rectification could not be filed within the prescribed limitation period and the appeal was dismissed on technical grounds.
The Tribunal observed that the mistake was genuine, inadvertent and purely technical in nature without any mala fide intent. It further noted that there was no dispute regarding actual deduction and deposit of taxes by the employer and denying credit would effectively result in double taxation of already taxed income.
Considering the exceptional circumstances and principles of equity and natural justice, the ITAT directed the Assessing Officer to permit correction of the TAN details and grant eligible TDS credit in accordance with law.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This is an appeal filed against the order dated 29-10- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2017-18.
2. The grounds of appeal are as under:-
“For Assessment Year 2017-18, the appellant(self) filed the income tax return within the due date on 19.08.2017 and duly paid the entire tax liability. The demand of Rs.1,28,480/- has arisen solely due to an inadvertent typographical error in mentioning the employer’s TAN in the ITR (correct TAN: PNES12481A; wrongly entered: PENS12481A), resulting in nongrant of TDS credit by the system. The fact that taxes were fully deducted and deposited is clearly evidenced by Form 16 and Form 26AS and has never been disputed by the department. The appellant had contested the demand and raised grievances upon becoming aware of the error; however, rectification could not be filed online due to limitation. The lapse was purely technical and without any malafide intent, and there is no loss of revenue. Sustaining the demand would result in double taxation of income already taxed, which is against principles of equity and natural justice. The appellant therefore prays that the demand be deleted.
Total Tax Effect Rs. 1,28,480/-”
3. The assessee filed the income tax return within the due date on 19-08-2017 and paid entire tax liability. The demand of Rs. 1,28,480/- has arisen solely due to inadvertent typographical error in mentioning the employee’s stamp in the ITR correct TAN PNES12481A and incorrect entering of TAN is PENS12481A, thus instead wrongly NE, the assessee while filing the return as EN which is a typographical error. But this resulted in non-granting of TDS credit by the system. The rectification could not be filed within the time by the assessee but this fact was not taken into account by the CIT(A) and on the issue of time barring, the appeal filed by the assessee was dismissed.
4. Heard both the parties and it appears that it is a genuine typographical mistake and due to the non-following of the procedure by the assessee, the time lapses for filing the rectification application but the assessee herein is admitting is made and under exceptional circumstances, it will be appropriate to allow the assessee’s plea and the Assessing Officer directed to allow the assessee to rectify his correct TAN of employee no. and if the assessee is entitled for the TDS credit, the same should be granted as per Income tax Act. The appeal of the assessee is partly allowed.
5. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open court on 15-05-2026
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