July 2014
LSG Sky Chef (India) Pvt. Ltd. vs. Dy. CIT In the Income Tax Appellate Tribunal “A” Bench, Mumbai Before I. P. Bansal, (JM) and Sanjay Arora, (AM) I.T.A. No. 4828/Mum/2012 Assessment Year: 2009-10. Decided on 27-03-2014 Counsel for Assessee/Revenue: M. M. Golvala & Amey Wagle/M. L. Perumal
By Jagdish D. Shah, Jagdish T. Punjabi Charted Accountants
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Section 203AA – Assessee cannot be denied credit for TDS merely because the same were not reflected in Form 26AS when TDS certificates in original were filed.
Facts:
The issue before the Tribunal was about the short credit of the tax deducted at source. In its return of income the assessee had claimed credit for TDS of Rs. 92.52 lakh. However, the AO allowed the credit of Rs. 67.99 lakh only and no credit was allowed for the balanced sum of Rs. 24.53 lakh, as the same was not reflected in Form No. 26AS despite furnishing of the TDS certificates in original by the assessee.
Held:
According to the Tribunal, the burden of proving as to why the said Form does not reflect the details of the entire tax deducted at source for and on behalf of a deductee cannot be placed on an assessee-deductee. The assessee, by furnishing the TDS certificate/s bearing the full details of the tax deducted at source, credit for which is being claimed, has discharged the primary onus on it toward claiming credit in its respect. He, accordingly, cannot be burdened any further in the matter. The Revenue is fully entitled to conduct proper verification in the matter and satisfy itself with regard to the veracity of the assessee’s claim/s, but cannot deny the assessee credit in respect of TDS without specifying any infirmity in its claim/s. Form 26AS is a statement generated at the end of the Revenue, and the assessee cannot be in any manner held responsible for any discrepancy therein or for the non-matching of TDS reflected therein with the assessee’s claim/s. The tribunal further observed that the plea that the deductor may have specified a wrong TAN, so that the TDS may stand reflected in the account of another deductee, is no reason or ground for not allowing credit for the TDS in the hands of the proper deductee. The onus for the purpose lies squarely at the door of the Revenue. Accordingly, the A.O. was directed to allow the assessee credit for the impugned shortfall.
