Tax credit for advance tax and self-assessment tax must be verified before demand is sustained.

Where the record, including Form 26AS, showed payment of advance tax and self-assessment tax, the tax credit could not be denied without verification. The revenue authority was required to examine the factual claim before sustaining the demand raised after processing the return. If the payments were found to be made and allowable under the Act, corresponding credit had to be granted. Relief was therefore limited to verification and consequential grant of eligible credit, and the assessee's appeal succeeded only to that extent.

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Issues: Whether the assessee was entitled to credit for advance tax and self-assessment tax paid, and whether the demand raised after processing the return required verification and relief to that extent.

Analysis: The rectification request under section 154 was based on the assertion that credit for advance tax and self-assessment tax had not been granted while processing the return. The record, including Form 26AS, indicated payment of the taxes claimed. In such circumstances, the relevant factual contention required verification by the revenue authority before sustaining the demand. If the taxes were found to have been paid and were allowable under the Act, corresponding credit had to be granted.

Conclusion: The assessee was entitled to verification of the tax payments and to credit of advance tax and self-assessment tax if found allowable; the appeal was therefore partly allowed in favour of the assessee.

Final Conclusion: The dispute was not finally deleted in full, but relief was granted to the extent of directing verification and consequential grant of eligible tax credit.

Ratio Decidendi: Where the record indicates payment of advance tax or self-assessment tax, the claim for corresponding credit cannot be denied without verification, and eligible credit must be granted under the Act.

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