The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) has held that the TDS credit cannot be denied to the assessee due to mentioning of wrong/new PAN by the deductors.
The assessee, Dilip B Desai, a Sole Proprietor approached the Tribunal challenging the order denying TDS credit. The assessee claimed that the business was shifted to the partnership firm from 01.04.2010 all the relevant information including the PAN of the newly incorporated partnership firm was informed to the clients/deductors of tax at source. On perusal of the Form-16A placed in the paper book and Form-26AS it is revealed that inadvertently some of the deductors while filing the quarterly return for January to March, 2010 in place of the PAN of the assessee for the work done during FY 2009- 10, mentioned the PAN of the new partnership firm and as a result of which the credit of tax deducted at source reflected in the PAN of the partnership firm and not under the PAN of the individual.
The AO refused to grant credit of TDS. However, the assessee received a partial relief from the CIT(A).
A division bench of the Tribunal comprising of Sri Manish Borad, Accountant Member & Sri Sonjoy Sarma, Judicial Member observed that “therefore, under the given facts and circumstances of the case, direct the ld. AO to examine the facts and veracity of the claim of credit of TDS at Rs. 13,88,073/- and if the assessee is able to demonstrate that the gross amount on which the tax has been deducted at source has been reflected in the regular books of account and audited financial statement of the individual assesee as a revenue then the credit of the TDS amounting to Rs. 13,88,073/- should be granted to the assessee. We direct the assessee to provide details of the tax deducted at source at Rs. 13,88,073/- and the details of tax deductors, bills raised by the assessee for such deductions and the same being incorporated in regular books of account. Needless to mention that proper opportunity of being heard should be provided to the assessee.”
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