TaxTMI 
TaxTMI 
2017 (7) TMI 819
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....assessed to tax. For the assessment year 2012-13, the petitioner had filed the return of income on 03.07.2012. The net income was shown to be Rs. 30,50,120/- and tax paid thereon was shown to be Rs. 7,90,045/- which included tax deducted at source of Rs. 7,83,635/-. 2.2 The case of the petitioner is that the funds belonging to the petitioner HUF were invested in RBI taxable bonds. This was, however, done in the name of Naresh Bhavanji Shah, the Karta of the HUF. Inadvertently, however, such investment was made in his individual name and he was not described as the Karta of the HUF. The Permanent Account Number (PAN) given to RBI also was that of Naresh Bhavanji Shah in personal capacity and not that of the HUF. Obviously, therefore, RBI ....
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....ion to which the deduction of tax at source is made is that of the petitioner HUF. The HUF has filed return and offered such income to tax. Such return has been accepted by the Assessing Officer and the income has been duly taxed. The petitioner also pointed out that Naresh Bhavanji Shah, karta of the HUF in his personal capacity has filed a separate return in which such TDS is not claimed. The Commissioner, however, by the impugned order dated 16.03.2015 rejected the revision petition of the petitioner holding that on account of the mismatch of PAN reflected in the TDS certificate and that of the petitioner, the credit cannot be granted. He held that as per the prescribed procedure TDS credit can be given only to the assessee against whose....
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....i Shah indicating his PAN. 6. As is well known, Chapter XVIIB of the Act pertains to tax deduction at source. This part contains detailed provisions for collection of tax at source and depositing with the government revenue and other related provisions. We may refer to the relevant provisions contained thereunder. Section 199 pertains to credit for tax deducted. Relevant portion thereof reads as under: "(1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of ....
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....ate of TDS can easily be appreciated when large number of such transactions in any accounting year are likely to take place. The most dependable identification of the deductee would be his PAN which would be a unique identification number so far as an individual or an entity is concerned. The anxiety of the department therefore to ensure proper matching of the PAN in the TDS certificate as compared to the PAN of the assessee who claims the benefit of such tax deducted at source, therefore, cannot be lightly brushed aside. The short question is, In a genuine case like the case on hand, is the person remedyless? 9. It is in this context, the provision of Section 199 would come into play. As per sub-section (1) of Section 199 any deduction ....
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....or a trust is assessable in the hands of members of the association of persons, or in the hands of trustees, as the case may be; (c) the income from an asset held in the name of a deductee, being a partner of a firm or a karta of a Hindu undivided family, is assessable as the income of the firm, or Hindu undivided family, as the case may be; (d) the income from a property, deposit, security, unit or share held in the name of a deductee is owned jointly by the deductee and other persons and the income is assessable in their hands in the same proportion as their ownership of the asset : Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the othe....