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March 2023

Mere non-furnishing of the declaration by the deductee to the deductor in terms of proviso to Rule 37BA(2) cannot be reason to deny credit to the person in whose hands income is included.

By Jagdish Punjabi, Chartered Accountant
Devendra Jain, Advocate
Reading Time 4 mins
58 Anil Ratanlal Bohra vs. ACIT
2023 (1) TMI 862 - ITAT PUNE
ITA No. 675/Pune/2022
A.Y.: 2021-22
Date of Order: 19th January, 2023

Mere non-furnishing of the declaration by the deductee to the deductor in terms of proviso to Rule 37BA(2) cannot be reason to deny credit to the person in whose hands income is included.

FACTS

Assessee, an individual, filed his return of income wherein he interalia claimed credit for TDS of Rs.2,80,456 being proportionate amount deducted at source by State Bank of India from the interest on fixed deposits placed by his wife with the State Bank of India. This amount of Rs.2,80,456 was in respect of interest attributable to fixed deposits which were placed by the wife of the assessee with State Bank of India out of the funds gifted by the assessee to her. Accordingly, in terms of section 64 of the Act, the income thereon was includible in total income of the assessee. The assessee included such income in the return of income and also claimed corresponding credit.

The CPC, in intimation denied credit of TDS claimed since the same was not reflected in Form No. 26AS of the assessee.

Aggrieved, the assessee filed an appeal to CIT(A) who held that the provisions of Rule 37BA(2) were not complied with and as a result, the assessee was not entitled to the credit for deduction of tax at source.

Aggrieved, the assessee preferred an appeal to the
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