TDS credit verification required before confirming demand under section 143(1), with remand for record checks

Denial of TDS credit and the consequential demand under section 143(1) required verification of the deduction and payment records where the assessee claimed credit reflected in the return but the available TDS records were treated as incomplete. The Tribunal found that Form 16A and Form 26AS had to be examined to determine the correct credit claim, and therefore set aside the impugned order and remanded the matter to the Assessing Officer for due verification and appropriate relief in accordance with law.

---

---

Issues: Whether denial of TDS credit and the consequential demand raised under section 143(1) required interference and whether the matter should be remanded for verification of the TDS records.

Analysis: The assessee claimed credit of tax deducted at source reflected in its return, while the lower authorities had restricted credit to the amount appearing in the available TDS records and upheld the balance demand. The Tribunal noted the rival submissions and the paper-book material indicating that the deductor had deducted and deposited the TDS amount and that verification of Form 16A and Form 26AS was necessary for proper determination of the credit claim.

Conclusion: The impugned order was set aside and the matter was remanded to the Assessing Officer for due verification of the TDS deduction and payment records and for granting appropriate relief in accordance with law. The appeal was allowed for statistical purposes.

---