Kolkata ITAT has recently held that the TDS credit should not be denied merely due to wrong entry of PAN number. The case detail is as under:

Dilip B Desai

(I.T.A. No.: 13/Kol/2022)

Let us have a short overview of the case:

Facts:

1. The clients of the assessee who are deducting tax at source and depositing it under the PAN Number of the assessee, wrongly mentioned PAN Number of the partnership firm newly incorporated on 01.04.2010 in the quarterly TDS return filed for quarter ‘4’ of Financial Year 2009-10.

2. Due to this reason the tax deducted by the deductors was wrongly reflected in the PAN of the partnership firm and the credit was not given to the individual assessee.

3. The AO and the CIT(A) denied credit of TDS to the assessee and so an appeal was filed with the ITAT.

ITAT Kolkata held as under:

1. If the assessee is able to demonstrate that the gross amount on which the tax has been deducted at source has been reflected in the regular books of account and audited financial statement of the individual assesee as a revenue then the credit of the TDS should be granted to the assessee.

2. Appeal by the assessee is allowed.

The case would be highly helpful in all the cases where in the TDS is done by the deductor but the PAN of some other person is mentioned while filing TDS return.