The assessee is the salaried employee.  The return of income for the Asstt. Year: 2013-14 filed demonstrating Gross Salary from employer Company with TDS deducted.  The Revenue found the significant discrepancy between TDS amount deducted and reflected in Form 26AS. Accordingly the department denied to grant the credit for the full amount of TDS and consequently, demand notice together with the interest u/s 234B and 234C was issued.

On Writ Petition, the Hon’ble Court noted that there is no dispute as to the TDS from salary made by the deductor employer company, that the Revenue has not taken any step against the employer for non-depositing the TDS amount.  The Hon’ble High Court held that in view of Section 205 r.w. CBDT’s Circular issued on 01-06-2015 and the Office Memorandum on 11-03-2016, the tax credit mismatch cannot be enforced coercively against the petitioner assessee shall give credit of TDS amount to the petitioner. [S. 192 read with Section 205] (AY.  2013-14)