TDS Refund appeared in Form 26-AS cannot be denied to Assessee Even If the same is Effected during Previous Year: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Hyderabad bench has held that TDS refund appeared in the Form 26AS cannot be denied to the assessee for the reason that it was effected during the previous year under the provisions of the Income Tax Act, 1961.

The assessee, GSR Ventures Private Limited, is a company, involved in the business of executing civil contracts with various Government and non-Governmental entities. During the FY.2016-17, the assessee received Rs.6,28,98,875/- on 18/03/2017, which they declared in their return of income on accrual basis and paid the taxes thereon. The Government department, however, failed to remit the TDS, though deducted, within thirty days. Due to delay in the deposit, the TDS credit appeared in the FY.2017-18, corresponding to the AY.2018-19 in Form 26-AS.

The Tribunal bench comprising Shri Laxmi Prasad Sahu, Accountant Member & Shri K.Narasimha Chary, Judicial Member relied on judicial decisions and observed that once any TDS is effected in accordance with the provisions of the Act and paid to the Central Government, such an amount shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, and, therefore, a credit of the same must be given to the person on whose behalf such TDS was made, irrespective of the year to which it relates.

“The said view is followed by the another Co-ordinate Bench of this Tribunal in the case of Zelan Projects (P) Ltd Vs. DCIT (supra). Since consistent view has been taken by the Co-ordinate Benches on this aspect, we are of the considered opinion that the refund of TDS though in fact was effected during the AY.2017-18 cannot be denied to the assessee when it was appearing in Form-26AS in the AY.2018-19 and claimed by the assessee. With this observation, we direct the Ld. AO to allow the claim of the assessee in respect of the TDS amount of Rs.12,57,976/- during the AY.2018-19. Consequent to our above direction, Stay application becomes infructuous and accordingly stands dismissed,” the Tribunal said.

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