Spouses must split TDS credit as per Income Tax Act, not Rule 37BA, Tribunal rules.

The Tribunal upheld the Revenue's argument that TDS amounts must be apportioned between spouses as per section 5A of the Income Tax Act, rejecting the appellant's claim for full TDS credit. The appellant's reliance on Rule 37BA of the Income Tax Rules, 1962 was dismissed, affirming the legislative requirement for apportionment under section 5A. Consequently, the appeal was dismissed, confirming the apportionment of TDS credit between spouses as mandated by the Act.

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Issues:
1. Appeal against CIT(A)-12, Bengaluru's order for assessment year 2018-19 under section 154 of the Income Tax Act, 1961.
2. Non-credit of TDS as per Form 26AS.
3. Application of Portuguese Civil Code of 1867 in Goa.
4. Apportionment of income between spouses under section 5A of the Income Tax Act, 1961.
5. Discrepancy in TDS credit in 26AS and return processing.
6. Claiming TDS credit by the spouse.
7. Interpretation of Rule 37BA of the Income Tax Rules, 1962.

Analysis:
1. The appeal challenges the CIT(A)-12, Bengaluru's order, alleging it to be against the law, unjust, and erroneous. The appellant argues that TDS credit as per Form 26AS was not given, and the CIT(A) erred in applying the Portuguese Civil Code of 1867 and section 5A of the Income Tax Act, 1961. The appellant contends that TDS credit should not be apportioned between spouses and that the full credit should be allowed. The appellant also raises concerns about the discrepancy in TDS credit and the reduction in the refund amount.

2. The Tribunal notes that the appellant is governed by the Portuguese Civil Code, making him subject to section 5A of the Act. The legislative intent behind section 5A is to apportion income between spouses equally. The Tribunal upholds the Revenue's argument that TDS amounts must be apportioned between spouses as per the Act. The Tribunal rejects the appellant's claim for full TDS credit, emphasizing the legislative requirement for apportionment under section 5A.

3. The appellant's reliance on Rule 37BA of the Income Tax Rules, 1962 is dismissed, as the rule does not negate the requirement for apportioning TDS credit between spouses under section 5A. The Tribunal holds that the appellant cannot benefit from his failure to provide the necessary declaration for apportionment. Consequently, the appellant's appeal is dismissed, affirming the apportionment of TDS credit between spouses as mandated by section 5A of the Income Tax Act, 1961.

This detailed analysis of the judgment addresses the various issues raised in the appeal and provides a comprehensive overview of the Tribunal's decision regarding the apportionment of TDS credit between spouses under the specific provisions of the Income Tax Act.

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