Nishant Anilbhai Shah Vs ITO (ITAT Ahmedabad)
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.
