TDS Credit Rectification Allowed for Bona Fide TAN Error, with correction and reconsideration of credit directed

A bona fide typographical error in the employer's TAN in a timely filed return prevented TDS credit from being reflected in the system, although the tax liability had already been paid. The assessee's request for rectification was accepted because the error was genuine and the non-grant of credit arose from an inadvertent procedural lapse in exceptional circumstances. The Assessing Officer was directed to permit correction of the TAN and to allow TDS credit, if otherwise admissible under law, giving the assessee partial relief through rectification and consequential reconsideration of credit.

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Issues: Whether the assessee was entitled to rectification and grant of TDS credit where the return contained a bona fide typographical error in the employer's TAN, resulting in non-grant of credit by the system.

Analysis: The return was filed within time and the tax liability had been duly paid. The demand arose only because of an inadvertent error in the TAN entry in the return, which prevented TDS credit from being reflected. The error was found to be genuine, and the delay in seeking rectification was treated as arising from procedural lapse in exceptional circumstances.

Conclusion: The assessee's plea was accepted to the extent that the Assessing Officer was directed to permit rectification of the TAN and to grant TDS credit if otherwise admissible under law.

Final Conclusion: The assessee obtained partial relief by securing an opportunity for rectification and consequential consideration of TDS credit.

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