TDS credit cannot be denied for non-reflection in Form 26AS if valid physical certificates support the claim.

TDS credit supported by valid physical certificates cannot be denied solely because the payment is not reflected in Form 26AS; the Assessing Officer may verify the underlying facts before granting credit. Applying jurisdictional and coordinate bench authority, ITAT Mumbai directed allowance of the claimed credit after verification of the correct records. The Revenue's objection on non-reflection in Form 26AS was rejected, and the assessment was modified to permit the assessee the benefit of the certified TDS credit.

---

---

Issues: Whether the assessee was entitled to credit of tax deducted at source on the basis of physical TDS certificates not reflected in Form 26AS, and whether such credit could be directed after verification of the correct facts.

Analysis: The credit claimed was supported by physical TDS certificates. The Tribunal noted the jurisdictional and coordinate bench decisions holding that TDS credit cannot be denied merely because the amount does not appear in Form 26AS, though the Assessing Officer may verify the correct facts before granting credit. The Tribunal followed that approach and directed allowance of the credit after verification.

Conclusion: The assessee was held entitled to full TDS credit supported by the physical certificates, subject to verification of the correct facts.

Final Conclusion: The Revenue's challenge failed on the substantive TDS-credit issue, and the assessment was modified to allow the assessee the claimed credit after verification.

Ratio Decidendi: TDS credit supported by valid physical certificates cannot be denied merely for non-reflection in Form 26AS, though the Assessing Officer may verify the underlying facts before granting the credit.

---