2025 (9) TMI 852

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....against the rectification order u/s 154 of the Act, dated 20.07.2022. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the action of the AO(CPC) in denying the credit of TDS to the tune of Rs. 3,15,923/- deducted against the salary paid by Srei Infrastructure Finance Limited. 2. For that the Ld. CIT(A) ought to have considered that Srei Infrastructure Finance Limited itself had confirmed that total TDS of Rs. 56,80,974/- was deducted against the salary paid to the assessee but only could deposit TDS amounting to Rs. 53,65,051/- due to some restriction imposed by the bank....

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....jarat High court in a similar matter (Kartik Vijay Sinh Sonavane Vs DCIT) and also the Office Memorandum issued by CBDT to deal with in such a case. My rectification petition has been rejected by the A.O. on the ground that the full TDS amount neither appears in relevant Form 26AS nor in Form 240." 4. Aggrieved with the order denying credit of TDS made, the assessee filed an appeal before the Ld. CIT(A) who has dismissed the appeal of the assessee by holding as under: "4.1 The appellant filed his income tax return for Assessment Year (AY) 2021-22, claiming a Tax Deducted at Source (TDS) credit of 56,80,974 on his salary. However, while processing the return, the Centralized Processing Centre (CPC) allowed TDS credit of only 53,6....

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..... It was further acknowledged that the company has received demand for short deduction of TDs from the Income Tax Department. The appellant has cited many decisions on the issue of default in deposit of TDS in Government account which was deducted from employee including the decision by the hon'ble Kolkata tribunal in the case of Vishal Pachisia in order dated 07-11-2023 in I.T.A No.: 764/KOL/2023. The Courts have held that an assessee cannot be required to pay tax on income if tax has already been deducted at source (TDS) from that income and directed that TDS credit should be allowed to the assessee, even if the deducted amount had not been deposited by the employer. 4.3 In the case of appellant, it is noted that his name doe....

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.... the order dated 20.07.2022 is stated to be rectified. However, the rectification order is incorrect. The assessee is a salaried employee and TDS of Rs.56,80,974/- was made but only an amount of Rs.53,65,051/- was deposited by the employer. The Ld. AR stated that the assessee cannot be penalised for the default of the employer and the credit ought to have been given. Before the Ld. CIT(A), the assessee submitted that the TDS of Rs.56,80,974/- was deducted but the credit of only Rs.53,65,051/- was allowed as the rest of the amount was not appearing in Form No. 26AS nor in Form No. 24Q. The Ld. AR reiterated the written submission which were filed before the Ld. CIT(A) and also relied upon the decision of Hon'ble Gujarat High Court in the....