2023 (3) TMI 84

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....ioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts while upholding the Order dated 21.07.2020 passed by the Assessing Officer rejecting the application u/s 154 of the Act. 1961 resulting into denial of TDS Credit and confirming the demand of Rs. 45,430/- created u/s 143(1) of the Income Tax Act. 1961 dated 10.05.2017. 2. That the Worthy Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in confirming the above demand on account of non- allowance of TDS Credit of Rs. 36,008/- deducted in the name of deceased mother of the assessee while assessing the income of Rs. 3,53,057/- belonging to Smt. Mohinder Kaur (deceased....

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.... deductor The assessee communicated the same to the deductor but the same was updated by the deductor in the next financial year. As such the assessee should not be made to suffer because of delay and procedural error on the part of the deductor." 3. At the outset, the Ld. Counsel submitted that the appellant being the legal heir has offered the income of his deceased mother at Rs.3,53,057/- in his Income Tax Return and consequentially has paid additional tax of Rs.74, 295 (97492-23197) to the department. It was argued that admittedly the income on which TDS has been deducted had been offered for tax in the return of income filed by the assessee as assessed u/s 143(1) of the Income Tax Act, 1961 and therefore corresponding TDS deducted b....

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.... is also not allowed credit of TDS, does this mean that credit of TDS cannot be taken by anybody? This cannot be the spirit and intention of law. It is finally submitted that there has been no loss of revenue to the department. The fact is explained as under: The Net Taxable income of the appellant: Rs.4,95,210 (Excluding the Income of Deceased Mother)   Tax Due: Rs. 23,197 T. D. S. Rs 42,905 Refund Rs 19,708 The Net Taxable income of the appellant:   (Including the Income of Deceased Mother)   Tax Due: Rs.97,492/- T. D. S. Rs. 97,492 Self Asst Tax Paid Rs. 22,960/- The fact that the appellant being the legal heir has offered the income of his decea....

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....ing to Smt. Mohinder Kaur (deceased mother of the assessee) in hands of appellants for A.Y. 2016-2017. It is admitted facts on record that the appellant's deceased mother's income on which TDS was deducted had been offered for tax in its return of income and assessed u/s 143(1) of the Income Tax Act, 1961 and thus, the credit of TDS cannot be denied merely because it appears in the name of deceased mother. As per law and in principle the tax on particular income can be charged once only. In the instant case, the tax has already been deducted by way of TDS by the revenue and thus, the confirmation of the order of the lower authorities would be denial of TDS claim to the appellant would result into double taxation of the same income. In our v....