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| DATE: | October 3, 2013 (Date of publication) |
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| Click here to download the judgement (citicorp_3i_infotech_TDS_Credit.pdf) |
TDS Credit must be given even if TDS Certificate is not available/ entry is not shown in Form 26AS
The assessee claimed credit for TDS which was denied by the AO on the ground that the claim did not match the entries shown in Form No. 26AS and that there was a discrepancy. On appeal, the CIT(A) held that the assessee would be entitiled to credit to the extent shown in the computer system of the department. On further appeal by the assessee to the Tribunal HELD:
The AO is not justified in denying credit for TDS on the ground that the TDS is not reflected in the computer generated Form 26AS. In Yashpal Sahwney 293 ITR 539 the Bombay High Court has noted the difficulty faced by taxpayers in the matter of credit of TDS and held that even if the deductor had not issued a TDS certificate, still the claim of the assessee has to be considered on the basis of the evidence produced for deduction of tax at source. The Revenue is empowered to recover tax from the person responsible if he had not deducted tax at source or after deducting failed to deposit with Central Government. The Delhi High Court has in Court On Its Own Motion Vs. CIT 352 ITR 273 directed the department to ensure that credit is given to the assessee even where the deductor had failed to upload the correct details in Form 26AS on the basis of evidence produced before the department. Therefore, the department is required to give credit for TDS once valid TDS certificate had been produced or even where the deductor had not issued TDS certificates on the basis of evidence produced by assessee regarding deduction of tax at source and on the basis of indemnity bond.
The requirement of TDS certificate has lost its purpose and usefulness in the largely changed scenario; especially after the e’filing of tax return made mandatory and the set up of CPC for its processing in place. it is a tragedy that this simple thing has not been realized and failed to register in the minds of tax gatherers even after the requirement of attaching to the tax return the certificate has been dispensed with since long.
As regards 26AS, any mismatch or similar irregularity is necessarily, in the fitness of things, a matter to be sorted out by the Revenue in direct co-ordination and with co=operation of the deuctors, the Revenue’s appointed agents under the law.
Every one right from the level of lowly AO / his Inspector to the top ought to be made answerable and accountable in the event they err , unwittingly or otherwise, on a wrong side and with no justification whatsoever, leading to taxpayers being subjected to any unwarranted/avoidable hardship.
absolutely true
I.T. dept. should be made to pay interest u/s.244A for wrongfully withholding TDS credit due to the tax payer for want of TDS entry in Dept’s TDS-site, then only they will be cautious in disallowing TDS credits.