Legal heir entitled to TDS credit where deceased's income was assessed in the heir's hands, preventing double taxation.

TDS credit cannot be denied merely because the deduction was reflected in the PAN of a deceased person, where the corresponding income has already been included and assessed in the legal heir's hands. Rule 37BA of the Income-tax Rules, 1962 supports credit to the person in whose hands the income is assessable, and this prevents double taxation of the same income. The assessing officer was directed to verify the relevant Form 26AS quarters and allow the credit. The legal heir therefore obtained relief against denial of TDS credit on income taxed in his hands.

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Issues: Entitlement of the legal heir to credit of TDS deducted on income of the deceased mother, where the same income was offered and assessed in the hands of the assessee.

Analysis: The income on which tax was deducted at source had already been included in the assessee's return as the legal heir of the deceased and assessed accordingly. In such circumstances, denial of TDS credit merely because the deduction was reflected in the deceased mother's PAN would result in taxation of the same income twice. Rule 37BA of the Income-tax Rules, 1962 supports grant of credit to the person in whose hands the corresponding income is assessable, and the assessee should not suffer due to delay or omission by the deductor in updating the PAN.

Conclusion: The assessee was entitled to TDS credit, and the Assessing Officer was directed to allow the claim on verification of Form 26AS for the relevant quarters.

Final Conclusion: The appeal succeeded and the assessee obtained relief against denial of TDS credit on income assessed in his hands as legal heir.

Ratio Decidendi: TDS credit cannot be denied merely because the deduction was reported in the PAN of a deceased person, where the corresponding income has been assessed in the hands of the legal heir; the person assessable on the income is entitled to the credit under Rule 37BA.

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