2023 (6) TMI 1283 - AT - Income Tax

Mis-match in the Form No. 26AS - Mis-match arises due to TDS deposit under wrong major head - denial of credit of TDS - HELD THAT - As deductor has deducted the tax at source and deposited the same which is appearing in the challan status in TIN Website but the same is not appearing in 26AS of the assessee. It is the case of the assessee is that these TDS deposits belongs to him on the basis of manual form No. 16 issued by the employer, therefore, because these TDS amounts do not reflect in 26AS of the assessee. Since there is a mis-match of amount deposited by Texl Export Pvt. Ltd. and TDS reflected in 26AS of the assessee, the CIT(A) has remanded the matter to the file of A.O. for de-novo verification. No reason to interfere with the direction of the CIT(A) to the A.O. for the de-novo verification, accordingly, find no merit in the grounds of Appeal of the assessee. We deem it fit to direct the A.O. to comply with the directions of CIT(A) and pass order in accordance with law within six months from the date of the receipt of this order. Thus, the Grounds of Appeal of the assessee are dismissed.

Summary

Issues:
The issues involved in the judgment are the denial of credit of TDS by the employer due to mismatch in Form No. 26AS, denial of liability to pay interest under sections 234B/234C of the Act, and the direction for de-novo verification by the Assessing Officer.

Denial of Credit of TDS:
The appeal was filed against the order passed by the National Faceless Appeals Centre for the assessment year 2010-11. The assessee contended that the evidence of TDS deduction by the employer based on monthly salary slips should not have been disregarded due to a mismatch in Form No. 26AS. The CIT(A) remanded the matter to the Assessing Officer for verification, noting that the TDS was deposited under the wrong major head. The CIT(A) directed the assessee to provide the original Form No. 16 for verification. The Tribunal found that the TDS deposits were not reflecting in the assessee's 26AS, leading to a remand for de-novo verification by the Assessing Officer. The Tribunal upheld the CIT(A)'s direction for verification and dismissed the appeal, directing the Assessing Officer to pass an order within six months.

Denial of Interest Liability:
The assessee also denied liability to pay interest under sections 234B/234C of the Act concerning the tax deducted by the employer from the salary income. However, the judgment did not provide detailed discussion or resolution regarding this specific issue.

De-novo Verification Direction:
The Assessing Officer was directed to conduct de-novo verification regarding the TDS deposit amount by the employer in consultation with the AO-TDS of the employer. The Tribunal upheld this direction and instructed the Assessing Officer to comply with the CIT(A)'s directions within six months from the date of the order.