Denial of TDS Credit on ground of Mismatch in Form 26AS and 16A 'Insensitive' and Violative of CBDT Charter: ITAT [Read Order]
![Denial of TDS Credit on ground of Mismatch in Form 26AS and 16A Insensitive and Violative of CBDT Charter: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/08/TDS-Form-26AS-and-16A-CBDT-Charter-ITAT-taxscan.jpg "Denial of TDS Credit on ground of Mismatch in Form 26AS and 16A Insensitive and Violative of CBDT Charter: ITAT [Read Order]")
The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that the denial of the TDS on ground of mismatch in Form 26AS and 16A is clear violation of the charters issued by the Central Board of Direct Taxes (CBDT). The assessee, Kirtida Rameshchandra Chandarana, filed her return of income on the basis of record generated by department itself i.e., form no 26AS and form no 16A....
The Income Tax Appellate Tribunal (ITAT), Mumbai bench has held that the denial of the TDS on ground of mismatch in Form 26AS and 16A is clear violation of the charters issued by the Central Board of Direct Taxes (CBDT).
The assessee, Kirtida Rameshchandra Chandarana, filed her return of income on the basis of record generated by department itself i.e., form no 26AS and form no 16A. Against this liability of Rs 11, 48,789/- assessee paid advance tax of Rs 715000/- and claimed TDS of Rs 453605/-, resulting in refund u/s 244A) amounting to Rs 19,816/-. Later, the income tax department, vide rectification order passed under section 154, denied the amount by quoting mismatch between the two documents.
A division bench of the Tribunal comprising Shri Aby T Varkey, Judicial Member and Shri Gagan Goyal, Accountant Member observed that “the documents which has been processed and issued by the department itself on which assessee relied, how there can be a case of mistake apparent from record. May be there is a mismatch in the data pertaining to assessee and data pertaining to the deductor (processed and maintained by department), CPC Bangalore and jurisdictional ITO can’t proceed u/s 154 against the assessee.”
Declaring the action of CPC Bangalore and ITO as bad in law, the Tribunal set aside the order and directed to give full credit of TDS claim by the assessee and any other money she deposited during this period, held that “such type of actions by the assessing authorities and insensitive decision of Ld. CIT(A) is not appreciable and are clear violation of equity and citizen charter issued by the parent authority i.e., Central Board of Direct Taxes. It is expected from the higher authorities and cadre controlling authorities of the station to take cognizance of such type of actions of assessing authorities and insensitive and injudicious decisions of Ld. CIT (A).”
To Read the full text of the Order CLICK HERE
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