TDS claim

[ASHISH DESAI]

A pvt. ltd. co. has not claimed TDS credit while filing their I.T. Return for AY 2004-05.this was an accounting error as TDS entry was also not passed in the books. subsequently, at the time of Assessment proceedings u/s 143(3),submits original TDS cert.amounting to Rs.2,45,000/- in addition to other TDS cert.already claimed in & attached alongwith the Return. Assessing Officer refuses the claim & not giving Tax credit of this additional TDS CLAIM.Query is is AO supposed to accept & allow the claim? or Will have to file the CIT appeal? Kindly advise.

[Mukesh Kumar]

You must have filed the revised return as soon as the irregularity was came to your knowledge, if with in the stipulated time indeed. First of all you must improve your accounting for preventing such blunder mistakes in future. For the current issue, since no option can be availed for the previous period, the only option before you to file an appeal before the CIT. Simultaneously you may file a separate refund claim before the ITO and take the appropriate action after processing of appeal or rejection of refund claim before the ITO on merits.

AI Summary

TDS credit claim rejected; appeal to higher tax authority and concurrent refund application advised promptly. Failure to claim a TDS certificate in the original return due to accounting oversight raises a belated TDS credit claim when the certificate is later produced during assessment. If a revised return could have been filed in time, that is the corrective step; otherwise available remedies are to file an appeal to the next tax authority against the assessing officer's refusal and/or submit a refund claim to the assessing officer for adjudication.