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Facts
The assessee filed its return of income and claimed credit for TDS. However, the CPC granted TDS credit of ₹10,84,152/- instead of the claimed ₹13,06,152/-, stating that a portion of TDS was not reflected in Form 26AS. The assessee explained that the deductor deposited the TDS in a subsequent financial year, and due to a reduction in TDS rates, the amount deposited was ₹1,66,500/-.
Held
The Tribunal held that the assessee is legally entitled to TDS credit for income offered to tax. The CIT(A) erred in denying the credit solely because it was not reflected in Form 26AS for the relevant year, especially when the TDS was deducted and deposited by the deductor. The Tribunal restored the issue to the AO for verification and allowance of credit.
Key Issues
Whether TDS credit can be denied if it is not reflected in Form 26AS for the relevant assessment year, even if the TDS was deducted and deposited by the deductor.
Sections Cited
143(1), 154, 199, 37BA, 190, 191
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Income Tax Appellate Tribunal, MUMBAI BENCH “B” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
ORDER PER OM PRAKASH KANT, AM
This appeal by the assessee is directed against order dated 20.08.2025 passed by the Ld. Additional/Joint Commissioner of Income-tax (Appeals) – 3 Bengaluru [in short ‘the Ld. CIT(A)’] for assessment year 2020-21.
Briefly stated, the assessee filed the return of income on 22.01.2021 declaring total income of ₹76,90,890/-. The return was processed by the Central Processing Centre (CPC) and an intimation processed by the Central Processing Centre (CPC) and an intimation processed by the Central Processing Centre (CPC) and an intimation was issued under section 143(1) of the Income was issued under section 143(1) of the Income-tax Act, 1961 (“the tax Act, 1961 (“the Act”) on 25.06.2021. Under the said Act”) on 25.06.2021. Under the said intimation, credit for tax intimation, credit for tax deducted at source (TDS) was granted at ₹10,84,152/ deducted at source (TDS) was granted at 10,84,152/- as against the claim of ₹13,06,152/ 13,06,152/- made by the assessee in the return. made by the assessee in the return.
The short grant of TDS credit amounting to ₹ ₹2,22,000/- was 2.1 The short grant of TDS credit amounting to on the ground that the said amount was n on the ground that the said amount was not reflected in Form No. ot reflected in Form No. 26AS for the relevant assessment year. The rectification application 26AS for the relevant assessment year. The rectification application 26AS for the relevant assessment year. The rectification application filed by the assessee under section 154 of the Act was also rejected. filed by the assessee under section 154 of the Act was also rejected. filed by the assessee under section 154 of the Act was also rejected.
2.2 The assessee explained that the deductor had deducted and The assessee explained that the deductor had deducted and The assessee explained that the deductor had deducted and deposited the tax in the subse deposited the tax in the subsequent financial year, corresponding to quent financial year, corresponding to the next assessment year, and further that pursuant to the CBDT the next assessment year, and further that pursuant to the CBDT the next assessment year, and further that pursuant to the CBDT Press Release dated 30.05.2020, the rate of TDS had been reduced Press Release dated 30.05.2020, the rate of TDS had been reduced Press Release dated 30.05.2020, the rate of TDS had been reduced by 25%. Accordingly, the deductor deposited TDS of ₹1,66,500/- by 25%. Accordingly, the deductor deposited TDS of by 25%. Accordingly, the deductor deposited TDS of instead of ₹2,22,000/ 2,22,000/-. The assessee therefore restricted its claim to he assessee therefore restricted its claim to ₹1,66,500/- only.
2.3 The Ld. CIT(A) acknowledged that the assessee was legally The Ld. CIT(A) acknowledged that the assessee was legally The Ld. CIT(A) acknowledged that the assessee was legally entitled to TDS credit corresponding to the income offered to tax. entitled to TDS credit corresponding to the income offered to tax. entitled to TDS credit corresponding to the income offered to tax. However, he declined to grant relief on the ground that the TDS However, he declined to grant relief on the ground that the TDS However, he declined to grant relief on the ground that the TDS credit did not reflect in Form No. 26AS for the relevant year. credit did not reflect in Form No. 26AS for the relevant year. credit did not reflect in Form No. 26AS for the relevant year. Emphasis was placed on the system Emphasis was placed on the system-driven nature of the driven nature of the Department and the need to avoid manual intervention. The Ld. Department and the need to avoid manual intervention. The Ld. Department and the need to avoid manual intervention. The Ld. CIT(A) directed that TDS credit could be allowed only after the CIT(A) directed that TDS credit could be allowed only after the CIT(A) directed that TDS credit could be allowed only after the deductor filed a correction statement and the credit reflected in the led a correction statement and the credit reflected in the led a correction statement and the credit reflected in the assessee’s Form No. 26AS. The appeal was accordingly partly assessee’s Form No. 26AS. The appeal was accordingly partly assessee’s Form No. 26AS. The appeal was accordingly partly allowed for statistical purposes. allowed for statistical purposes. The said claim of the assessee was The said claim of the assessee was accordingly rejected by the Ld. CIT(A) observing as under: rejected by the Ld. CIT(A) observing as under: rejected by the Ld. CIT(A) observing as under:
5.1.9. However, as has been, mentioned in the proceeding's However, as has been, mentioned in the proceeding's However, as has been, mentioned in the proceeding's paras, though the Appellant is legally entitled to get the TDS credit paras, though the Appellant is legally entitled to get the TDS credit paras, though the Appellant is legally entitled to get the TDS credit for the income offered to tax, however, owing to the fact that the for the income offered to tax, however, owing to the fact that the for the income offered to tax, however, owing to the fact that the DEDUCTOR has deducted and deposited the TDS in the A.Y 2021 DEDUCTOR has deducted and deposited the TDS in the A.Y 2021 DEDUCTOR has deducted and deposited the TDS in the A.Y 2021- 22 to the tune of Rs. 1,66,500/ he tune of Rs. 1,66,500/-, the correct TDS credit is not , the correct TDS credit is not getting reflected on the 26AS of the Appellant. It may also be noted getting reflected on the 26AS of the Appellant. It may also be noted getting reflected on the 26AS of the Appellant. It may also be noted that the Department is now completely system driven and any that the Department is now completely system driven and any that the Department is now completely system driven and any anomaly in the returns and forms tends to be noticed and rightly anomaly in the returns and forms tends to be noticed and rightly anomaly in the returns and forms tends to be noticed and rightly denied by the System. Moreover, for the fault of the DEDUCTOR, it d by the System. Moreover, for the fault of the DEDUCTOR, it d by the System. Moreover, for the fault of the DEDUCTOR, it would be unreasonable to keep pushing the onus on to the AO to would be unreasonable to keep pushing the onus on to the AO to would be unreasonable to keep pushing the onus on to the AO to grant manual TDS credits when the whole emphasis of the grant manual TDS credits when the whole emphasis of the grant manual TDS credits when the whole emphasis of the Department is to go digital to make things simpler and faster for Department is to go digital to make things simpler and faster for Department is to go digital to make things simpler and faster for the benefit of the taxpayers and at the same time prevent any t of the taxpayers and at the same time prevent any t of the taxpayers and at the same time prevent any refund related frauds which the manual system is susceptible to. refund related frauds which the manual system is susceptible to. refund related frauds which the manual system is susceptible to. Hence, in view of the above Hence, in view of the above-mentioned facts, the AO is directed to mentioned facts, the AO is directed to allow the TDS credit to the Appellant only after ensuring that the allow the TDS credit to the Appellant only after ensuring that the allow the TDS credit to the Appellant only after ensuring that the Deductor has filed the correction statement and the TDS credit gets tor has filed the correction statement and the TDS credit gets tor has filed the correction statement and the TDS credit gets reflected on the PAN of the Appellant. The Appeal filed on all the reflected on the PAN of the Appellant. The Appeal filed on all the reflected on the PAN of the Appellant. The Appeal filed on all the grounds stands Partly allowed for statistical purposes. grounds stands Partly allowed for statistical purposes. grounds stands Partly allowed for statistical purposes.
Before us, the Ld. counsel for the assessee relied upon the Before us, the Ld. counsel for the assessee relied upon the Before us, the Ld. counsel for the assessee relied upon the decision of the Coordinate Bench in on of the Coordinate Bench in Sanjeev Rajendra Pandit v. ITO Sanjeev Rajendra Pandit v. ITO (ITA Nos. 3004 & 3005/Mum/2022) for Assessment Year 2021-22, (ITA Nos. 3004 & 3005/Mum/2022) for Assessment Year 2021 (ITA Nos. 3004 & 3005/Mum/2022) for Assessment Year 2021 wherein an identical issue was examined and appropriate directions wherein an identical issue was examined and appropriate directions wherein an identical issue was examined and appropriate directions were issued for granting TDS credit. were issued for granting TDS credit.
We have heard the rival su We have heard the rival submissions and perused the material bmissions and perused the material on record. The undisputed factual position is that the assessee on record. The undisputed factual position is that the on record. The undisputed factual position is that the raised bills on the certain parties and shown the relevant amount raised bills on the certain parties and shown the relevant amount raised bills on the certain parties and shown the relevant amount as income in the year under consideration following the mercantile as income in the year under consideration following the mercantile as income in the year under consideration following the mercantile system of account. Howev system of account. However, the party to whom the services were er, the party to whom the services were rendered, booked expenses in the subsequent year and tax was also rendered, booked expenses in the subsequent year and tax was also rendered, booked expenses in the subsequent year and tax was also deducted in the subsequent year. deducted in the subsequent year.
4.1 Now, the contention of the assessee, is that the tax which was Now, the contention of the assessee, is that the tax which was Now, the contention of the assessee, is that the tax which was deducted in the subsequent year credit of the same should be deducted in the subsequent year credit of the sam deducted in the subsequent year credit of the sam allowed to the assessee in the year under consideration allowed to the assessee in the year under consideration allowed to the assessee in the year under consideration 4.2 Section 199 of the Act, read with Rule 37BA of the Income Section 199 of the Act, read with Rule 37BA of the Income Section 199 of the Act, read with Rule 37BA of the Income-tax Rules, 1962, provides that credit for TDS shall be given in the Rules, 1962, provides that credit for TDS shall be given in the Rules, 1962, provides that credit for TDS shall be given in the assessment year for which the corresponding income is assessable. assessment year for which the corresponding income is assessment year for which the corresponding income is The provision seeks to address the inherent timing mismatch The provision seeks to address the inherent timing mismatch The provision seeks to address the inherent timing mismatch between accrual of income and deduction of tax at source. between accrual of income and deduction of tax at source. between accrual of income and deduction of tax at source.
4.3 But in the instant case, the assessee is seeking credit for the But in the instant case, the assessee is seeking credit for the But in the instant case, the assessee is seeking credit for the TDS which was not at all deducted and paid by the deductor to the TDS which was not at all deducted and paid by the TDS which was not at all deducted and paid by the Government account. In such a situation, the two options could be Government account. In such a situation, the two options could be Government account. In such a situation, the two options could be possible. Firstly, the assessee possible. Firstly, the assessee could be granted credit of credit of TDS for the year in which the tax is deducted irrespective of the year in which year in which the tax is deducted irrespective of the year year in which the tax is deducted irrespective of the year income is declared. Secondly, the assessee . Secondly, the assessee could be allowed credit be allowed credit of TDS in the year in year under in year under consideration but subject to the but subject to the restriction of the interest as the assessee was the interest as the assessee was subjected to the interest as the assessee was deduction of tax at source on corresponding income but the tax was deduction of tax at source on corresponding income but the tax was deduction of tax at source on corresponding income but the tax was not deducted by the dedcutor, not deducted by the dedcutor, then the same was required to be same was required to be paid by assessee way of the advance tax. paid by assessee way of the advance tax. The identical issue has The identical issue has been decided by the Tribunal in the case of Sanjeev Rajendra Pandit been decided by the Tribunal in the case of Sanjeev Rajendra Pandit been decided by the Tribunal in the case of Sanjeev Rajendra Pandit (supra), the relevant finding of the Co (supra), the relevant finding of the Co-ordinate Bench is reproduced ordinate Bench is reproduced as under:
6.6 After referring After referring the provisions of the law as well as judicial the provisions of the law as well as judicial precedent on the issue, the Ld. CIT(A) concluded that for claiming precedent on the issue, the Ld. CIT(A) concluded that for claiming precedent on the issue, the Ld. CIT(A) concluded that for claiming the benefit of the TDS, the assessee was required to comply, firstly, the benefit of the TDS, the assessee was required to comply, the benefit of the TDS, the assessee was required to comply, produce TDS certificate, secondly, to show that income subjected to produce TDS certificate, , to show that income subjected to TDS is disclosed in return of income of the assessment year as is disclosed in return of income of the assessment year as is disclosed in return of income of the assessment year as assessable. The relevant finding of the Ld. CIT(A) is reproduced as assessable. The relevant finding of the Ld. CIT(A) is reproduced as assessable. The relevant finding of the Ld. CIT(A) is reproduced as under: “5.7 The deduction of tax at source does not necessarily, or 5.7 The deduction of tax at source does not necessarily, or 5.7 The deduction of tax at source does not necessarily, or is not required to, match alongside the corresponding is not required to, match alongside the corresponding is not required to, match alongside the corresponding income, recognition of which by the recipient could be either , recognition of which by the recipient could be either , recognition of which by the recipient could be either on accrual or on receipt basis. The accrual of the tax liability on accrual or on receipt basis. The accrual of the tax liability on accrual or on receipt basis. The accrual of the tax liability on income would arise only on the same being/becoming on income would arise only on the same being/becoming on income would arise only on the same being/becoming assessable. There is thus an inherent mismatch, in terms of assessable. There is thus an inherent mismatch, in terms of assessable. There is thus an inherent mismatch, in terms of time, between the pay time, between the payment of tax (per TDS) and the accrual ment of tax (per TDS) and the accrual of tax liability against the corresponding income qua the of tax liability against the corresponding income qua the of tax liability against the corresponding income qua the relevant provisions of law. It is in view of and to address relevant provisions of law. It is in view of and to address relevant provisions of law. It is in view of and to address this mismatch in time, so that the tax stands deducted this mismatch in time, so that the tax stands deducted this mismatch in time, so that the tax stands deducted while the corresponding income, though accrue while the corresponding income, though accrued has yet to d has yet to be received or though received, as by way of an advance, is be received or though received, as by way of an advance, is be received or though received, as by way of an advance, is yet to accrue, that the law yet to accrue, that the law-per section 199 r/w ss. 190 & per section 199 r/w ss. 190 & 191 and Rule 37BA] clarifies that the credit for the TDS 191 and Rule 37BA] clarifies that the credit for the TDS 191 and Rule 37BA] clarifies that the credit for the TDS shall be available for the year for which the corresponding shall be available for the year for which the corresponding shall be available for the year for which the corresponding income is assessable. It wold be evident from plain reading s assessable. It wold be evident from plain reading s assessable. It wold be evident from plain reading of section 199 of the Act and Rule 37BA of Income Tax of section 199 of the Act and Rule 37BA of Income Tax of section 199 of the Act and Rule 37BA of Income Tax rules, 1962 that credit is to be given to the assessee for the rules, 1962 that credit is to be given to the assessee for the rules, 1962 that credit is to be given to the assessee for the amount so deducted in the assessment made under this Act amount so deducted in the assessment made under this Act amount so deducted in the assessment made under this Act for the assessment year for wh for the assessment year for which Such income is ich Such income is assessable. So important conditions for getting benefit of assessable. So important conditions for getting benefit of assessable. So important conditions for getting benefit of TDS as per section 199 of the Act are TDS as per section 199 of the Act are (a) the assessee should produce the certificate for the (a) the assessee should produce the certificate for the (a) the assessee should produce the certificate for the amount of tax deducted at source amount of tax deducted at source; (b) show that income subjected to TDS is disclose (b) show that income subjected to TDS is disclose (b) show that income subjected to TDS is disclosed in the return of the assessment year as 'assessable'. return of the assessment year as 'assessable'. Thus, both the above Thus, both the above-mentioned conditions are to be mentioned conditions are to be satisfied. It is, therefore, clear that the assessee will not be satisfied. It is, therefore, clear that the assessee will not be satisfied. It is, therefore, clear that the assessee will not be entitled to have benefit or credit for the amount though entitled to have benefit or credit for the amount though entitled to have benefit or credit for the amount though mentioned in the certifica mentioned in the certificate for the assessment year if te for the assessment year if income relatable to the amount is not shown and is not income relatable to the amount is not shown and is not income relatable to the amount is not shown and is not assessable in that assessment year. If instead of entire assessable in that assessment year. If instead of entire assessable in that assessment year. If instead of entire income referable to amount of tax deducted, only a portion income referable to amount of tax deducted, only a portion income referable to amount of tax deducted, only a portion of income is found assessable the benefit has to be all of income is found assessable the benefit has to be all of income is found assessable the benefit has to be allowed only on the portion shown. If balance income, on account of only on the portion shown. If balance income, on account of only on the portion shown. If balance income, on account of system of accounting followed by the assessee or for some system of accounting followed by the assessee or for some system of accounting followed by the assessee or for some other reason is found to be assessable in future, then the other reason is found to be assessable in future, then the other reason is found to be assessable in future, then the credit for the balance TDS can be allowed only in future credit for the balance TDS can be allowed only in future credit for the balance TDS can be allowed only in future when income is as when income is assessable. Credit allowed on pro rata sessable. Credit allowed on pro rata basis in the year in which the certificate is issued and also basis in the year in which the certificate is issued and also basis in the year in which the certificate is issued and also in future where balance or in future where balance or such income is found to be such income is found to be assessable is as per the mandate of provision of section assessable is as per the mandate of provision of section assessable is as per the mandate of provision of section 199 of the Act. Any amount which has not been 199 of the Act. Any amount which has not been assessed in assessed in any year but referred in the TDS certificate, cannot be any year but referred in the TDS certificate, cannot be any year but referred in the TDS certificate, cannot be claimed under section 199 of the Act. claimed under section 199 of the Act. 5.8 Section 199 of the Act has two objectives 5.8 Section 199 of the Act has two objectives 5.8 Section 199 of the Act has two objectives - one to declare the TDS as payment of tax on behalf of the person declare the TDS as payment of tax on behalf of the person declare the TDS as payment of tax on behalf of the person on whose behalf the deduction was mad on whose behalf the deduction was made and to give credit e and to give credit for the amount so deducted on the production of the for the amount so deducted on the production of the for the amount so deducted on the production of the certificate in the assessment made for the assessment year certificate in the assessment made for the assessment year certificate in the assessment made for the assessment year for which such income is assessable. The second objective for which such income is assessable. The second objective for which such income is assessable. The second objective mentioned in section 199 is only to answer the question as mentioned in section 199 is only to answer the question as mentioned in section 199 is only to answer the question as to the year in which the credit for TDS shall be given. It year in which the credit for TDS shall be given. It year in which the credit for TDS shall be given. It links up the credit with assessment year in which such links up the credit with assessment year in which such links up the credit with assessment year in which such income is assessable. In other words, the Assessing Officer income is assessable. In other words, the Assessing Officer income is assessable. In other words, the Assessing Officer is bound to give credit in the year in which the income is is bound to give credit in the year in which the income is is bound to give credit in the year in which the income is offered to tax. This section 1 offered to tax. This section 199 does not empower the 99 does not empower the Assessing Officer to determine the year of assessability of Assessing Officer to determine the year of assessability of Assessing Officer to determine the year of assessability of the income itself but it only mandates the year in which the the income itself but it only mandates the year in which the the income itself but it only mandates the year in which the credit is to be given on the basis of the certificate furnished. credit is to be given on the basis of the certificate furnished. credit is to be given on the basis of the certificate furnished. In other words, when the assessee produces the In other words, when the assessee produces the certificates certificates of TDS, the Assessing Officer is req DS, the Assessing Officer is required to verify whether uired to verify whether the assessee has offered the income pertained to the the assessee has offered the income pertained to the the assessee has offered the income pertained to the certificate before giving credit. If he finds that the income of certificate before giving credit. If he finds that the income of certificate before giving credit. If he finds that the income of the certificate is not shown, the Assessing Officer has not the certificate is not shown, the Assessing Officer has not the certificate is not shown, the Assessing Officer has not only to give the credit for TDS in that assessment year and to give the credit for TDS in that assessment year and to give the credit for TDS in that assessment year and has to defer the credit being given to the year in which the has to defer the credit being given to the year in which the has to defer the credit being given to the year in which the income to be assessed. It does not have any mandate to to be assessed. It does not have any mandate to to be assessed. It does not have any mandate to allow credit even where TDS is not deducted but to be allow credit even where TDS is not deducted but to be allow credit even where TDS is not deducted but to be deducted in future. deducted in future.”
6.7 We find that though the Ld. CIT(A) has referred to the nd that though the Ld. CIT(A) has referred to the nd that though the Ld. CIT(A) has referred to the provisions of the law and Rules thereon, however, he did provisions of the law and Rules thereon, however, he did provisions of the law and Rules thereon, however, he did not considered the request of the assessee for allowing not considered the request of the assessee for allowing not considered the request of the assessee for allowing credit that either in the year under consideration or in the credit that either in the year under consideration or in the credit that either in the year under consideration or in the subsequent assessment year. We a subsequent assessment year. We are of the opinion that the re of the opinion that the deductor has been authorized by the Department to deduct deductor has been authorized by the Department to deduct deductor has been authorized by the Department to deduct tax at source on the income of the assessee and deposit into tax at source on the income of the assessee and deposit into tax at source on the income of the assessee and deposit into Government account. The credit of same has to be allowed Government account. The credit of same has to be allowed Government account. The credit of same has to be allowed to the assessee as per the provisions of the law and t to the assessee as per the provisions of the law and t to the assessee as per the provisions of the law and the Rules made thereunder and the Department cannot simply Rules made thereunder and the Department cannot simply Rules made thereunder and the Department cannot simply deny that no credit shall be granted because in the year in deny that no credit shall be granted because in the year in deny that no credit shall be granted because in the year in which assessee offered income, tax has not been deducted which assessee offered income, tax has not been deducted which assessee offered income, tax has not been deducted and not appearing Form No. 26AS, whereas in subsequent and not appearing Form No. 26AS, whereas in subsequent and not appearing Form No. 26AS, whereas in subsequent assessment year TDS is app assessment year TDS is appearing in Form No. 26AS, but earing in Form No. 26AS, but corresponding corresponding corresponding income income income is is is not not not reflecting reflecting reflecting there. there. there. The The The Department cannot swallow tax paid by the assessee and Department cannot swallow tax paid by the assessee and Department cannot swallow tax paid by the assessee and deny credit of tax deducted, which pertains to the assessee. deny credit of tax deducted, which pertains to the assessee. deny credit of tax deducted, which pertains to the assessee. In the instant case, the assessee has offered the income In the instant case, the assessee has offered the income In the instant case, the assessee has offered the income following the accrual system. As far as rental income is owing the accrual system. As far as rental income is owing the accrual system. As far as rental income is concerned, if tax has been deducted and deposited in concerned, if tax has been deducted and deposited in concerned, if tax has been deducted and deposited in subsequent year, the assessee should be allowed credit of subsequent year, the assessee should be allowed credit of subsequent year, the assessee should be allowed credit of same in the year under consideration of tax which has been same in the year under consideration of tax which has been same in the year under consideration of tax which has been deducted subsequently. However, t deducted subsequently. However, the assessee could not he assessee could not be allowed the benefit of the interest on refund which arise be allowed the benefit of the interest on refund which arise be allowed the benefit of the interest on refund which arise if any on account of credit of tax deducted and deposit in if any on account of credit of tax deducted and deposit in if any on account of credit of tax deducted and deposit in the subsequent assessment year. We accordingly set aside the subsequent assessment year. We accordingly set aside the subsequent assessment year. We accordingly set aside the finding of the Ld. CIT(A) on the issue the finding of the Ld. CIT(A) on the issue-in-dispute and dispute and direct the Ld. Assessing Officer to verify the amount of tax direct the Ld. Assessing Officer to verify the amount of tax direct the Ld. Assessing Officer to verify the amount of tax deducted and deposited in respect of income from rental deducted and deposited in respect of income from rental deducted and deposited in respect of income from rental property which has been shown by the assessee in the year property which has been shown by the assessee in the year property which has been shown by the assessee in the year under consideration and allow the credit as directed above. under consideration and allow the credit as directed above. under consideration and allow the credit as directed above. As far as TDS credit As far as TDS credit in respect of divided income is in respect of divided income is concerned the assessee is directed to furnish TDS certificate concerned the assessee is directed to furnish TDS certificate concerned the assessee is directed to furnish TDS certificate issued by the deductor and the Ld. Assessing Officer is issued by the deductor and the Ld. Assessing Officer is issued by the deductor and the Ld. Assessing Officer is directed to allow the credit of the said TDS after due directed to allow the credit of the said TDS after due directed to allow the credit of the said TDS after due verification. The Assessing Officer cannot simply verification. The Assessing Officer cannot simply decline the decline the credit of TDS and he is bound to verify TDS certificate issue credit of TDS and he is bound to verify TDS certificate issue credit of TDS and he is bound to verify TDS certificate issue in accordance with provisions of law. Further, the in accordance with provisions of law. Further, the in accordance with provisions of law. Further, the Assessing Officer is also directed to verify if any relief has Assessing Officer is also directed to verify if any relief has Assessing Officer is also directed to verify if any relief has already been granted in the rectification application filed by already been granted in the rectification application filed by already been granted in the rectification application filed by the assessee. If so then further benefit of TDS credit may ssessee. If so then further benefit of TDS credit may ssessee. If so then further benefit of TDS credit may not be allowed. In view of the our direction above, the not be allowed. In view of the our direction above, the not be allowed. In view of the our direction above, the grounds of appeal of the assessee are accordingly allowed grounds of appeal of the assessee are accordingly allowed grounds of appeal of the assessee are accordingly allowed for statistical purposes. for statistical purposes. 4.4 Accordingly, respectfully following the finding of the Co Accordingly, respectfully following the finding of the Co Accordingly, respectfully following the finding of the Co- ordinate Bench, the issue in dispute is restored back to the file of ordinate Bench, the issue in dispute is restored back to the file of ordinate Bench, the issue in dispute is restored back to the file of the Assessing Officer for allowing the credit of the TDS to the the Assessing Officer for allowing the credit of the TDS to the the Assessing Officer for allowing the credit of the TDS to the assessee in accordance with law assessee in accordance with law after due verification after due verification .
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.