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Facts
The assessee challenged the CIT(A)'s order for disallowing TDS credit of Rs. 58,210/-. The assessee claimed to be the 100% beneficiary of a trust and claimed TDS credit pertaining to the trust's income in their individual return. The trust itself did not claim the TDS credit.
Held
The Tribunal held that since the trust had not claimed the TDS credit and the assessee was the 100% beneficiary, the assessee was entitled to the credit. The Assessing Officer was directed to allow the TDS credit.
Key Issues
Whether the assessee is entitled to claim credit for TDS deducted on income of a trust, where the assessee is the 100% beneficiary and the trust has not claimed the credit.
Sections Cited
250, 154
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Income Tax Appellate Tribunal, “SMC” BENCH MUMBAI
Before: HON’BLE SHRI SANDEEP GOSAIN&
Date of Hearing 30.10.2025 Date of Pronouncement 26.11.2025 आदेश / ORDER
PER SANDEEP GOSAIN, JM:
The present appeal has been filed by the assessee challenging the impugned order 30.07.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2023-24.
The only effective ground raised in the present appeal relates to challenging the order of Ld. CIT(A) in not granting the credit of TDS of Rs. 58,210/- in favour of assessee. In this regard at the very outset Ld. AR submitted that identical issue in assessee’s own case has already been decided by ITAT in the case of Vaishali Manharlal Sheth in the operative portion is reproduced herein below:
The Assessee being aggrieved filed a rectification application u/s 154 of the Act and therefore the order u/s 154 of the Act was passed on 04.10.2024 but without resolving the issue against which the Assessee has preferred appeal before the Ld. Commissioner. Before the Ld. Commissioner the Assessee has claimed that the Assessee is 100% beneficiary to Vaishali Manharlal Sheth Trust and while filing its return of income for the year under consideration, the Assessee had declared trust income of Rs. 7,63,000/- in its income tax return, claiming the TDS to the tune of Rs. 71,025/- pertaining to the trust. The Assessee further claimed that Assessee's trust and the Assessee both are different entities and the Trust by filing its return of income, has not claimed any benefit qua TDS. However, the Assessee has claimed the benefit of the same, being 100% beneficiary to such Trust.
4. The Ld. Commissioner though considered the aforesaid claim of the Assessee, however not being satisfied with the same, ultimately dismissed the appeal filed by the Assessee. The Assessee therefore being aggrieved is in appeal before this Court and at the outset demonstrated from the ITR filed by the trust i.e. Vaishali Manharlal Sheth Trust, that the said trust has not claimed any benefit of TDS amount of Rs. 71,025/- in respect of income earned by it. Further, the Assessee has drawn attention of this court to the Vododara in the Assessee's sister case namely Preeti Manharlal Sheth u/s. 250 of the Act dated 14.07.2025, wherein the Ld. Additional/JCIT by considering the peculiar identical facts and form 26(AS) found the case of the then Assessee as genuine and allowed the full credit of the TDS in favour of the then Assessee by allowing appeal of the Assessee. order passed by another Additional/JCIT
5. Thus, considering the peculiar facts and circumstance in totality, as it is not in controversy the Trust involved has not claimed benefit of TDS and another Additional/JCIT Vododara in the Assessee's sister case namely Preeti Manharlal Sheth u/s. 250 of the Act dated 14.07.2025, in the identical facts allowed the full credit of the TDS in favour of the then Assessee, therefore the Assessee is entitled to get the benefit of the same being 100% beneficiary of such trust. Hence, the Assessing Officer is directed to allow the TDS claimed by the Assessee to the tune of Rs. 71,025/- which was deducted in the account of the aforesaid trust, accordingly.
3. On the other hand, Ld. DR relied upon the orders passed by the revenue authorities.
We have heard the counsels for both the parties, perused the material placed on record, judgments cited before us and also the orders passed by the revenue authorities. From the records, we noticed that identical issue has already been decided by the Coordinate Bench of Hon’ble ITAT in the case of Vaishali Manharlal Sheth (supra) the operative portion which have already been reproduced herein above.
After having gone through the decision of the Coordinate Bench as mentioned above, I find that the facts of the present case are identical, therefore adhearing to the principles of judicial consistency and while relying upon the order of Coordinate bench of ITAT in the case of Vaishali Manharlal Sheth (supra), we ordered accordingly.
In the result the appeal filed by the assessee stands allowed.
Order pronounced in the open court on 26.11.2025