2024 (11) TMI 1373 - AT - Income Tax

Non grant of full TDS credit claimed in the return of income - CPC granted credit for TDS in proportion to the capital gain income declared by the assessee and disallowed the claim for the balance TDS. HELD THAT - Undisputedly, the entire TDS on the sale consideration was remitted to the Government account in the name of the assessee. This fact is clearly evident from Form No. 26AS and the corresponding TDS certificate. Accordingly, the assessee claimed credit of entire TDS. Whereas, in the return of income of assessee s wife, no TDS was claimed. The aforesaid factual position remains uncontroverted before us. Merely because the property was jointly owned by the assessee and his wife and the capital gain arising on sale of property was equally shared by the joint owners, that cannot be the sole reason for disallowing assessee s claim in respect of TDS credit. More so, when it is the assertion of the assessee that his wife has not claimed credit for TDS. We direct the AO to factually verify, whether assessee s wife has claimed any part of the TDS and in case, assessee s claim that his wife has not claimed any part of the TDS is found to be correct, entire TDS credit should be allowed to the assessee.

Summary

The appeal was filed against the order of the first appellate authority for A.Y. 2023-24 regarding non-grant of full TDS credit claimed in the return of income. The assessee and his wife jointly sold a property, but TDS was deposited only in the name of the assessee. The ITAT directed the AO to verify if the wife claimed any part of the TDS, and if not, the entire TDS credit should be allowed to the assessee. The appeal was allowed on 27.11.2024.