TaxTMI 
TaxTMI 
2025 (9) TMI 1110
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....appellant made an application dated 15.09.2021 and 17.09.2021 for transmission of units of mutual fund into her name. Thereafter, the said company had declared some dividend of Rs. 4,39,823.18 and deducted TDS of Rs. 43,981/- under Section 194K of the appellant's deceased husband. During the filing of return such TDS was reflecting in Form 26AS of the appellant deceased husband since the same was not transmitted in the name of the appellant. However, the appellant being a legal heir duly offered this dividend income by clubbing the same into her income and declared this income in her return of income and had claimed the corresponding TDS credit. Relevant to mention that no return of income was filed on behalf of the appellant's deceased husband for the assessment year 2022-23. However, such TDS credit pertaining to the husband's clubbed income was not given to the appellant under intimation under Section 143(1) of the Act and additional interest under Section 234B and 234C was raised which, in order to buy peace, the appellant duly deposited by and under Challan No. 06118 dated 22.02.2023. In appeal, the order passed by the CPC Bangalore was upheld. Hence, the instant appeal before....
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....ke, it would not lead to denial of the claim of credit to the assessee, who has offered the said income to tax. Rule 37BA of Income Tax rules, 1962 also provides the credit of tax deducted at source and paid to the Central Government, if the income on which tax is deducted at source and paid to the Government is offered to tax by the assessee and the deposit is made in the name of other person. The Hon'ble Andhra Pradesh High Court in case of CIT vs. Bhooratnam & Company (supra) has considered this issue in para 12-17 as under:- "12. Heard Sri J.V.Prasad, learned Senior Standing Counsel for the Income Tax Department and Sri C.P. Ramaswamy, learned counsel for the assessees. 13. S.199 (1) of the Act provides that any deduction of tax made in accordance with the provisions of Chapter XVII of the Act 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. Under sub section (3) of Section 199, the CBDT may, for the purpose of giving credit in respect of tax deducted at source or paid in terms of the provisions of Chapter XVII of the Act, make such rules as may be necessary including ....
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....easons for giving credit to such person. (iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody. (3)(i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. (ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax. (4) Credit for tax deducted at source and paid to the account of the Central Government shall be granted on the basis of - (i) the information relating to deduction of tax furnished by the deductor to the income-tax authority or the person authorized by such authority: and (ii) the information in the return of income in respect of the claim for the credit, subject to verification in accordance with the risk management st....
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....commission receipts on which the TDS was deducted by the deductor and deposited in the PAN of the deceased husband of the assessee was assessed in the hand of the assessee. Therefore, merely because the amount of TDS was deposited under the PAN of the deceased husband of the assessee, TDS credit cannot be denied to the assessee when the said receipt was assessed as income in the hand of the assessee. The Co-ordinate Bench of this Tribunal in the case of Income Tax Officer vs. T.G. Veerarabhvan (supra) has held in para 6 as under:- "6. I have heard rival submissions and considered the facts and materials on record. There is no dispute about the fact that there were four co-owners receiving the rent but the certificate for tax deducted at source was issued in the name of the assessee only. There is also no dispute about the fact that the other co-owners have not claimed the credit of their share of tax deducted at source. It is also not disputed that the amendment to section 199 permitting to adjust the tax deducted at source proportionately in the hands of the co-owners has been brought in the statute book only with effect from the assessment year 1997-98. In other words, t....