Assessee filed return declaring income from interest received in name of her deceased husband and claimed credit for TDS. Which was denied by the Assessing Officer. On appeal Commissioner (Appeals) directed Assessing Officer to verify claim of assessee and grant TDS credit to assessee. However the Assessing Officer denied claim on ground that credit of TDS stood in name of late husband of assessee, therefore, she could not be given refund although she had offered income in her return and paid tax thereon-Whether since assessee was fair enough to offer interest income.On writ allowing the petition the Court held that the interest received on account in her return of income and tax paid also reflected in Form 26AS, TDS relating to such interest income was to be allowed to assessee and same was to be refunded through physical grant, if refund was not feasible through system (AY. 2017-18)
Nayana Kanakbhai Hutheesing v. ITO (2023) 292 Taxman 588 (Guj.)(HC)
S. 199 : Deduction at source-Credit for tax deducted-Interest income of deceased husband was shown in her return of income-Tax deducted which was reflected in Form No. 26AS has to be allowed to the assessee, though physical grant if refund was not feasible through system. [Art. 226]