TDS credit for wrong PAN mentioned in TDS return by employer – ITAT Order

TDS credit for wrong PAN mentioned in TDS return by employer- ITAT directs Assessing Officer (AO) to give credit of TDS to the assessee after verification

ABCAUS Case Law Citation:
ABCAUS 2782 (2019) (02) ITAT

The sole issue involved in the instant appeal was that the CIT(A) had not allowed credit for TDS which was deducted from the assessee but was not appearing in Form 26AS.

The assessee had filed a rectification request u/s 154 of the Income Tax Act, 1961 (the Act) However, the TDS credit was not allowed.

Though the CIT(A) observed that apparently the deductor had mentioned wrong PAN in the TDS return and hence the TDS in question was not appearing in 26AS. However, the CIT(A) was of the view that this defect had to be rectified by the deductor and unless, this was done, credit of tax could not be given to the correct deductee as credit might have gone to the wrong PAN holder in whose name TDS had been shown by the deductor.

Therefore, the CIT(A) held that there was no infirmity in the order passed u/s 154 of the Act in allowing credit for TDS against which wrong PAN of the assessee had been shown by the deductor.

Before the Tribunal, the assessee filed copy of Form No. 26AS and a screen shot taken from Income Tax website and ITD system showing wrong PAN mentioned in TDS return by employer not in existence. The assessee also filed communication from employer in this regard.

The assessee relied ipon the CBDT Instruction no. 275/29/2014-IT-(B) which instructed the Income Tax Officials not to enforce demands on account of tds credit mismatch and submitted that the AO may be directed to allow credit of the TDS.

The Tribunal restored the issue to the file of the AO for verification of TDS allowable to the assessee from the documents to be furnished by the assessee before him and allow credit if satisfied with the verification of the documents.

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