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Facts
The assessee received compensation in AY 2015-16, for which TDS of Rs. 2,06,061/- was deducted by JDA. However, JDA deposited the tax in AY 2016-17, causing the credit not to appear in the assessee's Form 26AS for AY 2015-16, leading to a demand. Although the credit appeared in Form 26AS for AY 2016-17, the assessee did not claim it for that year.
Held
The Tribunal remitted the issue to the Assessing Officer (AO) with directions. The AO is to instruct JDA to revise their TDS returns to reflect the credit in AY 2015-16. If JDA fails to respond within two months, the AO shall grant the TDS credit for AY 2015-16 based on its appearance in Form 26AS for AY 2016-17 and communicate with the CPC TDS system.
Key Issues
Whether the assessee is entitled to TDS credit in the assessment year when the income was received, despite the deductor depositing the tax in a subsequent year and it appearing in the subsequent year's Form 26AS due to the deductor's error.
Sections Cited
250, 143(1)(a), 194LA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR “SMC” BENCH : JAIPUR
Before: DR. MANISH BORAD
This appeal at the instance of assessee for the Assessment Year 2015-16 (A.Y.) is directed against the order of Ld. ADDL/JCIT (A)-2/NFAC, Kolkata [“CIT(A)”], dated 27/02/2025 framed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act').
The assessee has raised various grounds of appeal, but they all are against not providing of credit of tax deducted at source (TDS) of Rs. 2,06,061/-.
I have heard rival contentions and perused the record placed before me. I have also gone through the written submissions filed by the learned counsel for the assessee as well as the documents placed in the paper book running into 56 pages. I observe that the assessee is an individual and income-tax return for the A.Y.
2 ITA.No.699/JPR/2025 (Amresh Kumar Calla) 2015-16 filed on 31/03/2016. In this return, the assessee has shown the income of Rs. 20,60,608/- on account of compensation received from Jaipur Development Authority (JDA) vide award dated 03/07/2014. On the said compensation, JDA deducted tax at source of Rs. 2,06,061/- and the net amount has been credited in the bank account of the assessee on 27/02/2015. However, when the return was processed u/s. 143(1)(a) of the Act, TDS credit of Rs. 2,06,061/- deducted by the JDA has not been granted because the TDS by the JDA not appearing in Form 26AS under the PAN of the assessee. Subsequently, it was found that JDA has deposited the tax deducted at source in the subsequent financial year relevant to the A.Y. 2016-17. As per Form 26AS under the PAN of the assessee for A.Y. 2016-17 placed at page No.32 of the paper book, the credit of TDS of Rs. 2,06,061/- deducted u/s. 194LA of the Act is appearing and the transaction date is mentioned 31/07/2015 and date of booking is 27/10/2015. I find that in the return of income filed for the A.Y. 2016-17, the assessee has not claimed TDS of Rs. 2,06,061/- which is appearing in Form 26AS for A.Y. 2016-17 in the income tax return filed on 31/03/2017.
Now, the situation remains that assessee has received the compensation during the A.Y. 2015-16. Net consideration received during the A.Y. 2015-16, TDS has been claimed in the return for A.Y. 2015-16, but because the JDA deposited tax at source during the A.Y. 2016-17, demand is standing in the name of assessee for A.Y. 2015-16 and there is no claim of TDS made by the assessee in 3 ITA.No.699/JPR/2025 (Amresh Kumar Calla) ITR for A.Y.2016-17. In the first round of appellate proceedings, Ld.CIT(A) has remanded the issue to the file of Ld.AO and in the second round Ld.CIT(A) has directed the Ld.AO to allow credit if TDS of Rs. 2,06,061/- appears in Form 26AS of the assessee for A.Y. 2015-16. Under these given facts and circumstances, I firstly observe that the assessee is being heavily burdened for the mistake committed by JDA, which is not at all justified. However, under the given facts and circumstances of the case, I hereby remit the issue to the file of Ld.AO for limited purpose of giving benefit of TDS Rs. 2,06,061/- deducted by JDA by carrying out the following exercises:-
(i) Within two weeks of receiving copy of this Tribunal’s order, the Ld.AO shall write a letter to the concerned authority/Chairman of JDA mentioning the facts and also giving directions to revise TDS return of the JDA for the particular quarter relevant to A.Y. 2015-16 as well as A.Y. 2016-17, so that tax credited in the name of assessee appears in Form 26AS for the A.Y. 2015-16 and thereafter give alleged credit benefit to the assessee.
(ii) In case, there is no reply from JDA in two months from the date of receiving letter from the Ld.AO, then Ld.AO shall grant the credit of TDS Rs. 2,06,061/- appearing in Form 26AS for A.Y. 2016-17 against the tax liability for A.Y. 2015-16 and for doing the needful necessary communication shall be made with the CPC TDS system.
4 ITA.No.699/JPR/2025 (Amresh Kumar Calla) 5. In the result, appeal of the Assessee is allowed for statistical purposes.
Order pronounced in the open Court on 14.08.2025.