TMI Blog2014 (5) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... details furnished by the assessee in the income tax returns - when the assessment was processed and a refund was issued, no intimation was given by the department as to why the balance TDS amount could not be credited – the AO was under a duty to verify whether or not the deductor had made the payment of the TDS in the government account. Assessee has suffered a TDS, but has not been given due credit inspite of the fact that he has been issued a TDS certificate by a government department- There is a presumption that the deductor has deposited TDS amount in the government account especially when the deductor is a government department - By denying the benefit of TDS to the assessee because of the fault of the deductor causes not only ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted under the deemed assessment scheme. The Central Processing Centre, Bangalore issued an income tax refund of Rs.43,740/-. No intimation was given to the petitioner as to why the balance amount of Rs.1,88,630/- was not refundable. The petitioner, accordingly, filed an application under Section 154 of the Income Tax Act (hereinafter referred to as the Act ) for rectification of the mistake and praying for the refund of the balance amount. Reminders were sent and when it became known to the petitioner that his application was not received by the Department, the petitioner filed a second application under Section 154 of the Act. When nothing happened, the petitioner, being frustrated, filed the present writ petition under Article 226 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were coming up where an assessee was entitled to be given the credit of TDS, which had been deducted by the deductor, but, was not being given credit by the Income Tax Department on account of the fact that the TDS was not reflected in Form-26AS for various reasons. The Court noticed that there were cases where the deductor failed to upload the correct and true particulars of the TDS, which had been deducted, as a result of which, the assessee was not given credit of the tax paid. The Court also noticed that there were cases where the details uploaded by the deductor and the details furnished by the assessee in the income tax returns were mismatched and, on this ground, credit was not given to the assessee. The Delhi High Court also no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the CBDT ) to issue directions with regard to giving credit of unmatched and mismatched TDS certificates. Pursuant to the said decision of the Delhi High Court, the CBDT issued instruction No.5 of 2013, dated 8.7.2013, directing that where the assessee approaches the assessing officer with requisite details and particulars in the form of TDS certificate as an evidence against any mismatch amount, the assessing officer would verify whether or not the deductor had made payment of the TDS in the government account and, in the event, the payment had been made, credit of the same would be given to the assessee. For facility, the relevant portion of instruction No.5 of 2013 is extracted hereunder: In view of the order of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Department has shown their helplessness in not refunding the amount on the sole ground that the details of the TDS did not match with the details shown in Form 26AS. The stand of the respondents is, that a refund could be allowed only on matching the TDS with that disclosed in Form 26 AS. In the instant case, it is apparent that there is a mismatch between the details uploaded by the deductor and the details furnished by the assessee in the income tax returns. The Court finds that when the assessment was processed and a refund of Rs.43,740/- was issued, no intimation was given by the department as to why the balance TDS amount could not be credited in favour of the petitioner. The Court further finds that the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee does not consist solely of income from interest on securities or dividends, within three months from the end of the month in which the total income is determined under this Act, and (b) in any other case, within three months from the end of the month in which the claim for refund is made under this Chapter, the Central Government shall pay the assessee simple interest at [ fifteen] per cent per annum on the amount directed to be refunded from the date immediately following the expiry of the period of three months aforesaid to the date of the order granting the refund. Explanation.- If the delay in granting the refund within the period of three months aforesaid is attributable to the assessee, whether wholly or in part, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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