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2022 (10) TMI 74 - AT - Income TaxTDS Claimed but not reflected in 26AS - AO Asked the assessee to provide reconciliation regarding the difference in the above TDS figures - assessee explained that the difference is because some of the clients have made less payment and the difference was treated by him as TDS deducted - absence of the any TDS being deposited to the Government’s account the Assessing Officer could not give credit to the assessee of the same amount - HELD THAT:- Short payment made by the client cannot be assumed as TDS, unless, the clients have actually deducted the amount and remitted to the government’s account. The aforesaid observation of Commissioner (Appeals) assume importance in the context of the alternative claim made by assessee before the departmental authorities to the effect that, in case, the claim of TDS is not allowed, the amount included in the income should be reduced. In our view, the aforesaid alternative claim of the assessee, though, merits consideration, however, have not been properly addressed by the departmental authorities. Assessee’s excess claim of TDS assuming that the less payment made by the clients are towards TDS may not be acceptable, however, if the amounts in dispute were not actually paid by the clients but were offered to tax by including it in the income, the same has to be reduced, as, assessee never received such income. We direct the assessing officer to reduce the amount from the income of the assessee and compute the tax liability accordingly.
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