Tribunal grants HUF's TDS credit appeal, directs Assessing Officer to verify and grant credit.

The Tribunal allowed the appeal, holding that the HUF was entitled to claim TDS credit for the transaction. The Assessing Officer was directed to verify and grant the credit in the HUF's name.

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Issues involved:
The appeal challenging the order of the Commissioner of Income Tax (Appeals) regarding the non-granting of TDS credit amounting to Rs. 15 lacs by the Assessing Officer.

Details of the Judgment:

Issue 1: Denial of TDS credit by Assessing Officer and Commissioner of Income Tax (Appeals)

The assessee, an HUF, filed a return of income for the Assessment Year 2018-19 under limited scrutiny for capital gains deduction. The Assessing Officer accepted the return but denied TDS credit of Rs. 15 lacs under section 194IA of the Income Tax Act on the sale of a house property. The Commissioner of Income Tax (Appeals) allowed the credit but directed the assessee to follow the procedure under Rule 37BA(2) of the Income Tax Rules. The assessee challenged this order.

Issue 2: Arguments of the Parties

The Authorized Representative for the assessee argued that the TDS was reflected in the name of an individual, Shri Anand Singhania, but the income belonged to the HUF. The Revenue Departmental Representative contended otherwise, supporting the decision of the lower authorities.

Issue 3: Tribunal's Observations and Decision

The Tribunal noted that the LTCG from the property sale was shown in the HUF's name, with TDS deducted in the individual's name due to an error in the sale deed. Relying on a Gujarat High Court decision, the Tribunal held that the HUF could claim TDS credit upon filing an affidavit by the individual confirming non-claim of TDS. As Shri Anand Singhania did not claim the TDS in his returns, the Tribunal directed the Assessing Officer to allow the TDS credit to the HUF.

Conclusion

The Tribunal allowed the appeal, stating that the assessee HUF was entitled to claim TDS for the transaction, and directed the Assessing Officer to verify and grant the credit in the HUF's name. The decision was pronounced on 07.06.2023.

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