Entire TDS Credit to husband on sale of Joint Property is wife has not claimed the same
Mumbai Tribunal Grants Entire TDS Credit deposited in the name of the husband, on sale of Joint Property, Based on Wife’s Non-Claim of TDS Pending Verification by Assessing Officer
Let us have a Short Overview of the Case:
The assessee and his wife jointly sold an immovable property and equally reported the resulting capital gains in their respective returns of income (‘ROI’).
However, the entire TDS on the sale consideration was deposited solely in the husband’s name, and he claimed the entire TDS credit in his ROI.
When the husband’s ROI was processed, the Centralized Processing Centre (‘CPC’) granted TDS credit only in proportion to the capital gains income declared by him and denied the remaining TDS credit.
The Commissioner of Income Tax (Appeals) upheld the CPC’s order.
Court’s Decision:
The court noted that the entire TDS on the sale consideration was remitted to the Government account in the husband’s name, as evidenced by Form No. 26AS and the corresponding TDS certificate. The wife, on the other hand, did not claim any TDS in her ROI, and this fact remained uncontested.
The court emphasized that while the property was jointly owned, and the capital gain was equally shared between the assessee and his wife, this did not justify the denial of the TDS credit.
The assessee asserted that his wife had not claimed any TDS credit, and the court directed the Assessing Officer to verify if the wife had indeed claimed any part of the TDS. If the wife had not claimed any TDS credit, the entire TDS credit should be granted to the assessee.
The copy of the Appellate is as under:
