TDS credit cannot be denied merely on the ground that the said deduction is not reflected in Form 26AS: Mumbai ITAT
Mumbai ITAT in the case of Naik Naik and Co. v. CIT (ITA No. 2915/Mum/2025) clarifies that the TDS credit cannot be denied merely on the ground that the said deduction is not reflected in Form 26AS.
If tax has in fact been deducted at source and the assessee has offered the corresponding income to tax, and further substantiates through appropriate evidence that such TDS was duly deducted – the credit thereof cannot be denied merely on the ground that the said deduction is not reflected in Form 26AS.
Why?
Section 205 bars double taxation
CBDT 2015 & 2016 Intructions & Office Memorandum support this
It means – Deductor’s failure ≠ assessee’s liability = No 234B/234C interest if TDS already covers tax
Form 26AS is evidence – not a gatekeeper to justice.
Other decisions dealing with the same aspect:
1. Yashpal Sahni v. ACIT [2007] 165 taxman 144 (Bombay HC)
2. BDR Finvest (P.) Ltd. v. DCIT [2024] 161 taxmann.com 583 (Delhi HC)
3. Hari Krishan Sharma v. Government of NCT of Delhi [2024] 166 taxmann.com 688 (Delhi HC)
4. Om Prakash Gattani v. ACIT [1996] 222 ITR 489 (Gauhati HC)
5. Malay Kar v. UOI [2024] 162 taxmann.com 767 (Orissa HC)
6. Rakesh Kumar Gupta v. UOI [2014] 46 taxmann.com 447 (Allahabad HC)
7. Rajesh Dadu v. DCIT [2023] 152 taxmann.com 224 (Hyderabad Trib.)
The copy of the order is as under:
