TDS credit cannot be refused for name or PAN mismatch; verification of Government deposit is required before denial.

Credit of TDS could not be denied merely because the deductor recorded the assessee's erstwhile name and PAN. The mismatch was attributable to the deductor's error, and the deductee was not to suffer for that mistake. In line with CBDT Instruction No. 5/2013, the Assessing Officer was required to verify whether the tax had been deposited into the Government account and, if so, to grant the corresponding credit. The proper course was verification of payment rather than outright rejection of the claim on account of mismatch.

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Issues: Whether credit of tax deducted at source could be denied merely because the deductor mentioned the assessee's erstwhile name and PAN, and whether the matter required verification before allowing the credit.

Analysis: The mismatch arose from an error committed by the deductor in deducting and depositing tax under the old name and PAN. The deductee was not to be made to suffer for the deductor's mistake. The Board's Instruction No. 5/2013 directed the Assessing Officer to verify whether the tax had been deposited in the Government account and, if so, to grant credit to the assessee. The proper course was therefore verification of the payment and not outright rejection of the claim on the ground of mismatch.

Conclusion: Credit of TDS could not be refused solely due to mismatch in the deductee's name or PAN, and the matter had to be restored for fresh verification with a direction to allow credit if payment to the Government account was confirmed.

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