ANITA GROVER,DELHI vs. INCOME TAX OFFICER, DELHI

ITA 4305/DEL/2026Status: DisposedITAT Delhi31 August 2026AY 2019-2013 pages
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What were the facts?

The assessee declared rental income and claimed credit for TDS deducted by the tenant. The CPC denied TDS credit due to the tenant's failure to deposit the deducted tax, raising a demand. The assessee argued that Section 205 bars recovery from the deductee for the deductor's default.

What did the Tribunal hold?

The Tribunal held that the deductee cannot be denied credit for TDS once it has been deducted, even if the deductor fails to deposit it with the government. The Act provides remedies against the deductor for such defaults.

What were the issues?

Whether the assessee (deductee) can be denied credit for TDS deducted by the payer (deductor) due to the deductor's failure to deposit the tax with the government. Whether Section 205 of the Income-tax Act bars such denial of credit.

Which sections of the Income-tax Act were involved?

Section 194-I,Section 143(1),Section 205,Section 198,Section 199,Section 201,Section 221,Section 271C,Section 273B,Section 278AA,Section 201(2)

AI-generated summary — verify with the full judgment below

Before: SHRI S. RIFAUR RAHMAN

For Appellant: Shri Rupender Shah, CA
For Respondent: Shri Manoj Kumar, Sr. DR
Hearing: 13.07.2026
1.

This appeal is filed by the assessee against the order of ld. Addl./JCIT-1, Hyderabad [“Ld. CIT(A)”, for short] dated 24.02.2026 for the Assessment Year 2019-20 raising the following grounds of appeal :-

1.

On the facts and in the circumstances of the case and in law, the first appellate authority erred in holding the appeal before it to be belated, and in not condoning delay if any, in filing of the same.

2.

On the facts and in the circumstances of the case and in law, the first appellate authority erred in confirming findings in intimation order u/s.143(1), wherein a tax demand of Rs.29,517/- had been determined as against a refund due of Rs. 54,600/-,

2

3.

On the facts and in the circumstances of the case and in law, the first appellate authority erred in not allowing cred

The order continues below.

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