Tribunal grants relief to assessee for un-deposited TDS, directs AO to credit tax per Form 26AS.

The Tribunal allowed the assessee's appeal for both the assessment years 2016-17 and 2017-18, concerning the credit of TDS deducted but not deposited to the Government Account. The Tribunal directed the Assessing Officer to verify the facts, grant the credit/set off of tax as per Form 26AS, and consider relevant legal precedents, ultimately providing relief to the assessee based on the specific circumstances and legal considerations presented during the proceedings.

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Issues:
1. Assessment year 2016-17: Credit of TDS not deposited to Government Account.
2. Assessment year 2017-18: Credit of TDS not deposited to Government Account.

Assessment Year 2016-17:
The assessee appealed against the order of the ld. CIT(A)/ National Faceless Appeal Centre (NFAC) for the assessment year 2016-17. The issue revolved around the credit of TDS deducted by the employer but not deposited to the Government Account. The assessee contended that the employer, ABG Shipyard Ltd., had deducted tax at source, but the TDS returns were not filed, resulting in a demand raised by the CPC/AO. The ld. CIT(A)/NFAC dismissed the appeal, stating that the TDS was not reflected in Form 26AS due to non-remittance to the government account. However, the assessee argued for the credit of TDS based on similar cases and a decision by the Jurisdictional High Court. The Tribunal directed the AO to verify the facts, grant the credit/set off of tax shown in Form 26AS, and consider the decision of the High Court. The appeal was allowed for statistical purposes.

Assessment Year 2017-18:
For the assessment year 2017-18, the assessee raised a similar issue regarding the credit of TDS deducted but not deposited to the Government Account. The facts were akin to the previous assessment year, with the only variation being the amount in question. The Tribunal, considering the similarity in facts and circumstances, applied the findings from the earlier assessment year's case. Consequently, the appeal for the assessment year 2017-18 was also allowed for statistical purposes.

In both cases, the Tribunal emphasized the importance of verifying the details in Form 26AS, granting the credit/set off of tax accordingly, and considering relevant legal precedents. The decisions highlighted the significance of ensuring proper credit for TDS deductions made by the employer, even if not deposited to the government account. The appeals were allowed for statistical purposes, providing relief to the assessee based on the specific circumstances and legal considerations presented during the proceedings.

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