The High Court ruled that when tax deducted at source (TDS) is...

The High Court ruled that when tax deducted at source (TDS) is not initially credited but the relevant certificate or Form 26AS is subsequently presented, the Assessing Officer is statutorily obligated u/s 155(14) to amend the assessment order accordingly. The provision does not mandate revising the original return. It caters to situations where TDS is reflected in Form 26AS after a time lag due to unforeseeable reasons. Once the updated Form 26AS is submitted, the Assessing Officer must acknowledge and amend the assessment. Denying the refund of TDS already deducted and reflected in Form 26AS, when the income was never taxable, is illegal and arbitrary. The High Court allowed the writ petition and quashed the impugned order u/s 264.