2024 (11) TMI 381 - AT - Income Tax

Denial of TDS credit on salary - employer of the Assessee has not reflected the TDS in Form No.26AS - Assessee mainly claimed that employer of Assessee in fact, not provided Form No.16 - as per assessee if the employer has deducted TDS on salary u/s.192 and may not have deposited the same in the Government Treasury, then also, the Assessee is entitled to get the claim of TDS as the Assessee cannot be denied the benefit of TDS which is benevolent in nature HELD THAT - No doubt, the contention raised by the Assessee seems to be reasonable and logical, however, Assessee is required to discharge its primary onus by producing relevant documents, then only, can claim the right in its right perspective. We observe that the Assessee by filing TDS working which is though initialed by somebody but the same is neither on proper letter head nor there is a name of the person who signed such document and even otherwise, the Assessee has also failed to file any document, wherefrom it can be reflected that the Assessee has received any particular amount of salary on which TDS has been deducted and therefore, in absence of relevant documents, Commissioner correctly held that the AO has not made any mistake in non-granting of credit of TDS, since, the Assessee did not furnish any salary slip or Form No.16. We also observe that in the aforesaid case i.e. Chandrashekhar Sadashiv Potphode (supra) the Assessee was able to prima facie establish its case by producing relevant documents, whereas in this case the Assessee has failed to do so. We by considering peculiar facts and circumstances of the case, observe that in absence of relevant documents, the issue remained to be adjudicated properly and in its right perspective and therefore, for proper and just decision of the case and for the end of the justice, we deem it appropriate to remand the instant case to the file of the Ld. Commissioner for decision afresh.

Summary

Issues:
1. Disallowance of TDS credit by the Assessing Officer.
2. Challenge of the disallowance before the Commissioner and Tribunal.
3. Claim of TDS credit by the Assessee.
4. Lack of relevant documents to support the claim.
5. Decision to remand the case for further consideration.

Analysis:
1. The Assessee declared total income with a breakup of salary and bank interest, claiming TDS credit of Rs. 10,45,439 deducted by the employer. The AO disallowed the credit due to non-reflection in Form No.26AS.

2. The Commissioner affirmed the disallowance, stating non-deposit of TDS by the employer and lack of supporting documents from the Assessee. The Assessee appealed, arguing entitlement to TDS credit despite employer's default, citing a similar case's favorable Tribunal decision.

3. The Tribunal considered the Assessee's claim but noted the absence of essential documents like Form No.16 or salary slips. It highlighted the need for the Assessee to provide evidence to substantiate the claim, as done in the referenced case where the Assessee successfully proved the TDS deduction.

4. Despite acknowledging the reasonableness of the Assessee's argument, the Tribunal emphasized the importance of fulfilling the burden of proof. It found the Assessee's evidence insufficient and decided to remand the case to the Commissioner for a fresh decision, allowing the Assessee an opportunity to produce necessary documents for verification.

5. The Tribunal remanded the case for proper adjudication, stressing the Assessee's responsibility to substantiate the claim with relevant documents like appointment letters, salary slips, or bank statements. The decision to remand was made in the interest of justice to ensure a fair and just resolution based on concrete evidence. Both appeals were allowed for statistical purposes, aligning with the decision in the preceding year's case.