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Facts
The assessee, as the legal heir, inherited and continued her deceased husband's proprietorship business and also received interest income in his name. She included this income in her Income Tax Return and claimed TDS credit, which was deducted in her deceased husband's name. The Assessing Officer denied this TDS credit, leading to consequential demand and interest, a decision upheld by the Addl/JCIT(A).
Held
The Tribunal, citing Rule 37BA(3)(i) of the Income Tax Rules, 1962, and judicial precedents, held that the assessee is entitled to the TDS credit deducted in her deceased husband's name since she offered the corresponding income for taxation. The Assessing Officer was directed to allow the credit, with the assessee advised to seek record correction from the deductor and provide evidence to the AO.
Key Issues
Can TDS credit be claimed by an assessee for income included in her return but deducted in the name of her deceased husband, particularly when she has succeeded his business and offered the relevant income to tax?
Sections Cited
143(1), 250, 234A, 234B, 234C, Rule 37BA, Rule 37BA(3)(i)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA
Before: SONJOY SARMA & SRI RAKESH MISHRA
order : 04-August-2025 ORDER PER BENCH: These four appeals filed by the assessee are against the separate orders of the Addl/JCIT(A)-1, Nashik [hereinafter referred to as the ‘Ld. Addl/JCIT(A)’] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AYs 2019-20, 2020-21, 2021-22 & 2022-23 dated 02.01.2025, which have been passed against the intimations dated 26.02.2020, 30.09.2021, 26.05.2022 & 08.11.2022, respectively issued u/s 143(1) of the Act. Since the issues in all the four appeals are AY 2021-22, Ground No. 1 has been inadvertently split into Ground Nos. 1 and 2.
We shall first take up the appeal in AY 2019-20 as the lead case. Brief facts of the case mentioned in the Statement of Facts are that the assessee is an Individual and she e-filed her return of income for the said assessment year on 12/11/2019 declaring total income of Rs. 1,36,79,759/- and claiming credit of taxes paid of Rs. 46,52,910/-. However, the Ld. Assessing Officer, the Asst. Director of Income Tax, CPC, Bengaluru vide the Intimation issued u/s 143 (1) of the Act on 26/02/2020 accepted the returned income but allowed credit of taxes paid of Rs.24,46,589/- only as against the tax credit claimed at Rs. 46,52,910/- and raised consequential demand of Rs.25,98,755. Details of credit of taxes claimed by the assessee and credit allowed by the department have been mentioned as ₹46,52,910/- and ₹24,46,589/- respectively and a sum of ₹22,06,321/- being the TDS in the name of the husband has not been allowed. In the return of income, in addition to her own income of Rs.59,33,102/- (income from other sources-interest income), the assessee also offered total income of Rs.73,13,808/- comprising income from M/s Elco Enterprise and Interest income from Bank (both in the name of Late Jagbandhu Das) for taxation and corresponding TDS of Rs.28,42,910/- (in the assessee's