The Income Tax Appellate Tribunal (ITAT) addressed a significant dispute in ITA No.1735/DEL/2021 between Manish Tandon and the Income Tax Officer, Ward-2(4), Gurgaon, concerning the non-grant of TDS credit for the assessment year 2016-17.
Manish Tandon filed an appeal against an order passed by the National Faceless Appeal Centre (NFAC), which denied him credit for TDS amounting to Rs.7,92,054, despite his claims supported by various documentation.
The core issue revolved around the mismatch between the TDS credit claimed by Tandon and the TDS credit available in Form 26AS. The discrepancy led to a legal question about the entitlement of a taxpayer to TDS credit when the employer deducts but fails to remit it to the government.
Tandon, represented by his counsel, argued based on his employment records that his employer, M/s. Amira Pure Foods Pvt. Ltd., had deducted the TDS but might not have deposited it with the government. He contended that, under Section 205 of the Income-tax Act, 1961, he should not be made to pay the tax again. The ITAT reviewed the legal framework and past decisions, ultimately sending the case back to the assessing officer for a detailed inquiry with the employer to verify the actual TDS deductions.
This case highlights the complexities involved in the administration of TDS and the responsibilities of employers in TDS compliance. It also emphasizes the rights of taxpayers to receive credit for taxes deducted at source, a fundamental principle in tax law meant to prevent double taxation.
The tribunal’s decision to remand the case back for further investigation reflects the judicial approach to ensuring fairness and compliance in tax matters. This decision could influence how similar disputes are handled in the future, stressing the importance of accurate TDS reporting and compliance by employers.
Dispute over TDS Credit: The Case of Manish Tandon vs. ITO Ward 2(4), Gurgaon
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