The Income Tax Appellate Tribunal (ITAT), Delhi bench has held that the TDS credit cannot be denied to the assesseeon ground of technical or typographical errors.
The assessee, Seji Miyazono is an individual having residential status of “Not Ordinarily Resident” and a salaried employee of M/s. Yaskawa India Pvt. Ltd. having office at Bengaluru.While processing the return of income filed by the assessee, the Centralized Processing Centre (CPC), Bengaluru did not grant credit for TDS amounting to Rs.3,48,701/- on the allegation of mismatch with Form 26AS.
On first appeal, the Commissioner of Income Tax (Appeals) observed that TDS credit for the aforesaid amounts was not granted to the assessee on the allegation that the credits claimed in the return of income are not reflected in Form 26AS statement.
A bench of Shri Saktijit Dey, Judicial Member and Dr. B.R.R. Kumar, Accountant Memberafter perusing Form 26AS statement submitted, observed that the amount of Rs.1,78,692/-, being the TDS deducted by Employees Provident Fund organization is reflected in From 26AS. Similarly, TDS amounting to Rs.1,70,009/- deducted by the employer M/s. Yaskawa India Pvt. Ltd. is also reflected in Form 26AS with TAN number.
Ruling in favour of the assessee, the ITAT held that “Thus, the allegation of the CPC that these two amounts are not reflected in Form 26AS, prima facie, appears to be perfunctory. In any case of the matter, since, tax has been deducted at source on the income of the assessee, full credit of such TDS has to be given to the assessee in spite of the fact that the assessee might have committed some technical/typographical error in the return of income, as alleged by learned Commissioner (Appeals). This is for the reason that the assessee cannot be deprived of getting the benefit of tax genuinely deducted on his behalf.”
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