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2014 (5) TMI 520 - HC - Income TaxMismatching of TDS amount - Refund of TDS - Application for rectification of mistake u/s 154 of the Act – Held that:- Following COURT ON ITS OWN MOTION Versus COMMISSIONER OF INCOME TAX AND OTHERS [2013 (3) TMI 316 - DELHI HIGH COURT] - no effort was made by the AO to verify the fact as to whether the deductor had made the payment of the TDS in the government account - 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 - 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 - 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 harassment and inconvenience, but also makes the assessee feel cheated - the mismatching is not attributable to the assessee and the fault solely lay with the deductor – assessee is entitled for refund of the TDS amount - The assessee has also made out a case for payment of interest since there was delay in refunding the amount which was attributable solely with the Department and there is no fault on the part of the assessee – Decided in favour of Assessee.
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