ESTATE OF PALLONJI SHAPOORJI MISTRY,MUMBAI vs. DEPUTY DIRECTOR OF INCOME TAX, BENGALURU

ITA 9185/MUM/2025Status: DisposedITAT Mumbai26 March 2026AY 2024-25Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI SANDEEP SINGH KARHAIL (Judicial Member)6 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in restoring the matter to the AO as per section 251 of the Act. However, it agreed with the need for factual verification regarding whether the income pertains to the post-death period. The AO was directed to verify and allow TDS credit if the income is post-death.

What were the facts?

The assessee, Estate of Pallonji Shapoorji Mistry, was formed after the demise of Mr. Pallonji Shapoorji Mistry. The estate offered dividend income for assessment year 2024-25 and claimed TDS credit of Rs. 3,56,931 deducted in the hands of the deceased. The AO processed the return without granting TDS credit, and the CIT(A) restored the issue to the AO for verification.

What were the issues?

Whether the TDS credit for income earned by a deceased person, but taxable in the hands of the estate, can be allowed to the estate, and the procedural correctness of directing the AO for verification by the CIT(A).

Which sections of the Income-tax Act were involved?

Section 168,Section 199,Section 250,Section 251,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI OM PRAKASH KANTSHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Ninad Patade
For Respondent: Shri Hemanshu Joshi, SR. DR

PER SANDEEP SINGH KARHAIL, J.M. The assessee has filed the present appeal against the impugned order dated 14/10/2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Additional/Joint Commissioner of Income Tax (Appeals)-6, Delhi, [“learned Addl./Joint CIT(A)”], for the assessment year 2024-25. 2. In this appeal, the assessee has raised the following grounds: -

2 “1.1 The learned Commissioner of Income-Tax (Appeal) both in law and on the facts and in the circumstances of the case, ought to have appreciated that since dividend income

The order continues below.

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