VEERASWAMY SUBRAMANIAM SAIRAM,AVARAMPALAYAM vs. ACIT, NCC-1,, COIMBATORE

O R D E R

PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

3. At the outset, we note that an immovable property jointly owned by the assessee and his wife, Mrs. Kalaiselvi holding 50% share, was sold for a sale consideration of ₹.2,71,00,000/-. The assessee is duly disclosed his proportionate share of the sale value and the resulting capital gain in his return of income which is at page 52 of the paper book. It was contended that the buyer erroneously filed 26QB by attributing the entire sale consideration and total TDS solely to the assessee’s PAN. We note that while processing the return of income, the CPC, Bengaluru restricted the TDS credit to an extent of ₹.1,35,500/- being 50% of total tax deducted on the ground that the credit can only be given in proportionate to income offered to tax, consequently, the tax demand of ₹.31,04,350/- including interest which was confirmed vide order under section 154 of the Act. A serious contention was raised by contending that the entire TDS credit to an extent of ₹.2,71,000/- was actually paid to Government exchequer which is reflecting in Form 26AS at page 119 of paper book. It is pertinent to note that assessee’s wife did not claim any TDS in her return of income which is evident from page 151 of the paper book showing no claim under her PAN. Further, it is noted that the assessee corrected the discrepancy in the annual information statement for short AIS, which was ignored during the course of processing the return of income of assessee. Therefore, considering the submissions of assessee, material on record and in the interest of justice, we deem it proper to remand the matter to the file of the Assessing Officer to allow full credit of TDS to the assessee as reflected in form 26AS, otherwise, would result in double tax burden or loss of legitimate tax credits, which is admittedly no loss to the Respondent Revenue. Thus, ground Nos. 1 to 10 raised by the assessee are allowed for statistical purposes.