TDS Credit in respect of Interest Received from Deceased Wife’s Deposit cannot be Denied to Assessee: ITAT [Read Order]

The Cochin Income Tax Appellate Tribunal ( ITAT ) has recently held that the Tax Deduction at Source credit in respect of interest received from the deceased wife’s deposit could not be denied to the assessee.

Assessee Prem Mukundan is a senior citizen aged 70 years after filing a return of income declaring a total income of Rs.18,55,120/- from pension, house property and interest. In the said return of income, the assessee had declared interest income of his deceased wife from SBI and Canara Bank and claimed Tax Deduction Source (TDS) credit on the same Intimation under Section 143(1) of the Income Tax Act 1961 was issued and disallowed the TDS credit in the name of assessee’s wife. Against the order, the assessee filed an appeal before the ITAT.

Deepak Padmanabhan counsel for the assessee submits that the assessee had declared the income of his deceased wife in his return of income and the necessary credit for the TDS also ought to have been granted.

J.M. Jamuna Devi counsel for the revenue supported the decision of the first appellate authority CIT (A) and contented that

“Interest income accrued to the wife of the assessee and accordingly TDS was deducted and the credit was given to her. Since she was a separate entity from her husband, the assessee, the TDS credit now cannot be given to the assessee, even though he has declared the corresponding income, in his Return of Income, on his own accord. In this case, as per the assessee, the due credit part is already appearing in the 26AS statement of his late wife.”

After considering the contentions of both parties the division bench of the ITAT comprising George George K (Judicial Member) and Padmavathy S.  (Accountant Member) allowed the appeal filed by the assessee and observed that after the death of the assessee’s wife assessee enjoyed the interest received from the deceased wife’s deposit. The assessee dutifully declared the same to tax in his return of income. Hence, the assessee is eligible to get the credit of his deceased wife’s TDS as he has declared the income pertaining to the said TDS.

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