HASMUKH DAVE DISC FAMILY TRUST,AHMEDABAD vs. THE ITO, WARD-1(2)(3), AHMEDABAD

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ITA 13/AHD/2025Status: DisposedITAT Ahmedabad20 March 2025AY 2022-23Bench: Shri Sanjay Garg (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that if the FDR interest income was transferred to and offered by the trust, then the corresponding TDS credit should also be allowed in the name of the trust.

What were the facts?

The assessee trust's appeal concerns the denial of TDS credit of Rs. 30,490. The TDS was deducted in the name of the trustee (Husmukhbhai) but the interest income was offered by the trust. The Assessing Officer denied the credit because the TDS was not in the trust's name.

What were the issues?

Whether TDS credit can be allowed in the name of the trust when it was deducted in the name of the trustee, provided the income was offered by the trust.

Which sections of the Income-tax Act were involved?

Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH

Before: Shri Sanjay Garg

For Appellant: Shri Hemanshu Shah, A.R
For Respondent: Shri Ashok Kumar Suthar, Sr. D.R

आदेश/ORDER The present appeal has been filed by the Assessee against the order passed by the Learned Commissioner of Income Tax, Appeal/Additional/Joint Commissioner of Income Tax, Appeal [hereinafter referred to as “CIT(A)’] dated 07.11.2024 arising out of the assessment order passed u/s. 143(1) of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2022-23.

2.

The sole issue involved in this appeal is relating to the denial of credit of TDS amounting to Rs. 30,490/-.

3.

The Assessing Officer (in short “A.O.”) denied the credit of TDS observing that the TDS was deducted in the name of the trustee namely Husmukhbhai and not in the name of the trust. The ld. counsel for the assessee has submitted that the assessee trust is a family trust. The fixed deposits in the bank were made in the name of trustee namely Hasmukhbhai. However, the same was transferred to the trust and even the interest income has also been offered in the name of the trust. He therefore has submitted that the TDS credits may also be allowed in the name of the trust.

4.

The ld. Departmental Representative, on the other hand, has supported the findings of the lower authorities stating that since the TDS is in the name of individual, the same cannot be allowed in the name of trust.

5.

I have considered the rival contentions. It is the case of the assessee that the FDR interest income amount was transferred by the trustee to the trust and the income has also been offered in the name of the trust. If the income has been offered in the name of the trust, then the corresponding credit of TDS should also be allowed in the name of the trust. The Assessing Officer is directed to verify the aforesaid contention. If the FDR interest income has been offered in the name of the trust then he will accordingly allow the credit of the corresponding TDS in the name of the trust.

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