VIKAS AGGARWAL,NEW DELHI vs. ITO WARD - 41(1), NEW DELHI

This appeal by the assessee is preferred against the order of the CIT(A)-14, New Delhi dated 26.08.2019 pertaining to A.Y.2014-15.

The solitary grievance is that the CIT(A) erred in not giving credit of TDS of Rs.21,13,864/-. The entire quarrel can be understood from the following chart :-

There is no dispute that the payer of the rent have deducted tax at source amounting to Rs.21,13,864/-. It is also an undisputed fact that the said TDS amount has not been deposited to the credit of the Government and, therefore, the same was denied.

On such facts we cannot direct the AO to give the credit of TDS. The appeal of the assessee has to be dismissed.

However, in the interest of justice it would not be out of place to quote the following CBDT circular :-

In the light of the aforementioned CBDT circular, though we have dismissed the appeal of the assessee, yet we direct the AO not to take any recovery action for the outstanding tax liability keeping in mind the mandate of aforestated CBDT circular. With these directions the appeal is dismissed.

Decision announced in the open court on 12.06.2023.