TDS credit must follow the income where the legal heir offered the receipts and the deceased's PAN was surrendered.

TDS credit could not be denied merely because it was deducted in the deceased husband's PAN where the assessee was accepted on the income-tax portal as legal heir, the husband's PAN had been surrendered, and the assessee had offered the corresponding professional receipts to tax. Refusing credit while taxing the same income in the assessee's hands was inconsistent with law and with Article 265 of the Constitution. The objection that a separate return had to be filed in the capacity of legal heir was rejected, and the TDS credit was directed to be allowed with consequential refund and interest.

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Issues: Whether TDS deducted in the name of the deceased husband could be granted to the assessee who had offered the corresponding income in her return and whose late husband's PAN had been surrendered.

Analysis: The assessee was accepted on the Income-tax portal as the legal heir of the deceased husband. The record showed that the deceased's PAN had been surrendered and that the assessee had returned the income arising from the deceased husband's professional receipts. In these circumstances, refusing TDS credit merely because the deduction appeared under the deceased husband's PAN, while taxing the corresponding income in the assessee's hands, was found to be contrary to law and inconsistent with Article 265 of the Constitution of India. The requirement of filing a separate return in the capacity of legal heir did not arise on these facts.

Conclusion: The TDS credit was directed to be granted to the assessee, with consequential refund and interest, and the objection based on the absence of a legal-heir return was rejected.

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