Assessee not Liable for Non-Compliance of the Deductor: ITAT allows TDS Credit [Read Order]

The Mumbai Bench of Income Tax Appellate Tribunal ( ITAT ) has allowed the Tax Deducted at Source (TDS) credit and observed that the Assessee is not liable for the noncompliance of the deductor.

This observation was made on the appeal filed by assessee against the order of National Faceless Appeal. 

The assessee- Bulldog Media & Entertainment Pvt. Ltd was a company engaged in the business of production of Television Software filed the return of income on 15.10.2018 declaring total income of Nil claiming refund of Rs. 10,14,720/-.

The return was processed under section 143(1)(A) of the Income Tax Act 1961 and assessee’s claim of refund was reduced from Rs. 10,14,720/- to Rs. 4,75,801/- on the ground that the balance had not reflected in Form No. 26AS of AY 2018-19 but was reflected in AY 2019-20.

Chetan M. Kacha, on behalf of Commissioner of Income Tax CIT(A) contended that the Tax Deducted at Source (TDS) return was not furnished on time. He further submitted that the correct TDS amount had not appeared in the concerned assessment year as the conduct of the deductor was defeating the intent of law and appellant had also not approached the deductor for correction in TDS statements.

The Tribunal Bench of Aby T Varkey (Judicial Member) and Gagan Goyal (Accountant Member) allowed the full amount of TDS claim observing that the assessee had declared true and fair income and TDS had been denied because of the non-compliance of the deductor. The bench also held that the assessee could not be made liable for the default of deductor for late payment.

To Read the full text of the Order CLICK HERE

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