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2022 (1) TMI 181 - AT - Income TaxNon-grant of TDS credit - salary income received from HDFC Bank as well as Centurion Bank of Punjab to tax - Claim of TDS credit deducted by Centurion Bank of Punjab from the salary of the assessee duly offered to tax - HELD THAT:- AO has denied the claim of credit of TDS on technical ground of limitation, however, when nothing was to be performed on the part of the assessee to claim such credit of TDS and refund except claiming the same in the return of income then the A.O. cannot be absolved from performing his duties as mandated under the provisions of this Act. When the TDS credit available to the assessee is reflected in Form 26AS then the assessee is even not required to assist the tax authorities to justify the claim once it is declared and claimed in the return of income. Further, the letter dated 13/03/2013 is well within the period of limitation as prescribed U/s 154(7) of the Act then non-performance of duties by the A.O. to take a decision on the said letter cannot be taken to prejudicial to the assessee when the second letter is filed by the assessee on 03/08/2017 for reminding the A.O. for the said claim. The whole conduct on the part of the authorities below for non-granting of due credit of TDS as well as refund is nothing but amounts to undue enrichment of the department by failure to perform its duties. When it was the duty on the taxing authority to grant undisputed due TDS credit and consequential refund and non non-perfoming of its duties on technical ground certainly results injustice to the assessee. Accordingly, in the facts and circumstances of the case, the impugned orders of the authorities below are set aside and the claim of TDS credit deducted by Centurion Bank of Punjab from the salary of the assessee duly offered to tax is allowed and the A.O. is directed to grant consequential refund to the assessee. - Decided in favour of assessee.
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