RAHUL DINESH BAJPAI,MUMBAI vs. DEPUTY DIRECTOR OF INCOME TAX, CPC, BENGALURU, BENGALURU

The short issue arising for consideration in this appeal is non grant of full TDS credit, claimed in the return of income.

Briefly, the facts are, during the year under consideration, the assessee and his wife sold an immovable property jointly owned by them for a total consideration of Rs.1,18,00,000/-. The capital gain arising out of such sale was offered in equal proportion both by the assessee and his wife. However, since the TDS on sale consideration was deposited in the name of the assessee alone, in the return of income filed for the assessment year under dispute, the assessee claimed the entire TDS. While processing the return of income filed by the assessee, the Centralized Processing Centre (CPC) granted credit for TDS in proportion to the capital gain income declared by the assessee and disallowed the claim for the balance TDS. appeal before the first appellate authority, however, he was unsuccessful.

We have heard the parties and perused the materials on record. Undisputedly, the entire TDS on the sale consideration was remitted to the Government account in the name of the assessee. This fact is clearly evident from Form No. 26AS and the corresponding TDS certificate. Accordingly, the assessee claimed credit of entire TDS.

In view of the aforesaid, we direct the A.O. to factually verify, whether assessee’s wife has claimed any part of the TDS and in case, assessee’s claim that his wife has not claimed any part of the TDS is found to be correct, entire TDS credit should be allowed to the assessee.

In the result, the appeal is allowed in terms indicated above.