SAVADIKA RETAIL PRIVATE LIMITED,GURGAON, HARYANA vs. INCOME TAX OFFICER, GURGAON, HARYANA

Facts

The assessee appealed against the CIT(A)'s order confirming the CPC's action of restricting TDS credit due to turnover discrepancies between the return income and Form 26AS, despite the assessee claiming TDS correctly. The assessee's core activity is wholesale and retail goods, with a significant portion of sales facilitated by e-commerce operators.

Held

The Tribunal held that the Assessing Officer erred in allowing TDS credit on a proportionate basis when the assessee had offered the total income relatable to the TDS to tax. The difference in turnover was explained by sales returns, and the assessee's claim for full TDS credit as per Form 26AS was supported by the facts.

Key Issues

Whether TDS credit can be restricted based on turnover discrepancies when the assessee has offered the full income to tax and explained the differences with sales returns?