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Judgment
Per Renu Jauhri, Accountant Member:
The above captioned appeal is preferred by the assessee against the order dated 14.08 .2025, passed by C IT(A)/NFAC u/s 250 of the Income T ax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2024-25.
The assessees has raised following grounds of appe al:
“1 . The order of the Addl / Joi nt Commi ssioner of Income Tax (A ppeals ) [“CIT(A)”] i s contrary to law, facts and circums tances of the case.
2.No n grant of TDS credi t appeari ng in other entity 26AS:
2.1The order passed by t he H on’bie CIT(A ) is c ontrary to law, facts and c ircumstance of the case.
2.2The lear ned AO/CIT(A ) erred in law as well as o n facts in not granti ng f ull credit in respect of Tax deducted at sour ce (TDS) t o whi ch t he A ppellant is eligibl e.
2.3The l earned A O/ CIT (A) erred i n not granti ng c redit in r espect of the TDS not a ppeari ng i n the Appell ant’s Per manent Account Number, without appreciati ng the fact that income correspondi ng t o suc h TDS credits has bee n offer ed to tax and has also been taxed in t he ha nds of the Appellant.
2.4The l ear ned CIT(A ) e rred i n not appreciati ng that , in substance, the TDS pertai ns to the i nc ome assessabl e in the hands of the Appel lant , a nd therefor e, as pe r the provisions of section 199 of the Income-tax Act , 1961 read wi t h R ul e 37BA, cr edit of such TDS ought t o have bee n allowed t o t he Appellant.
2.5The l ear ned JCIT(A) erred i n making TDS cr edit conditional upon the deductor revising t he TDS ret urn, whic h is b eyond the Appellant ’s control..”
Brief facts are that the asse ssee firm is eng aged in profession of practicing Chartered Accountant and filed its return for A.Y. 2024-25 on 28.10.2024 declaring income of Rs.31,31,96 ,110/- and claimed credit for TDS of Rs.11,64,29 ,068/-. Return was pr ocessed on 27.05 .2025 by the CPC, Bangalore u/s 143(1) wherein full credit of TDS claimed was not granted.
Aggrieved by the short grant of T DS cr edit of Rs.11,62,312/-, the assessee preferred an appeal before ld. CIT(A). Assessee’s appeal was allowed for statistical purposes by ld. CIT( A) vide order dated 14.08.2025 with the following directions to the ld. AO:
“4 .1.6 Since the issue under consid eratio n requi res ve rificati o n of income o ffered and cor responding TDS credit available agai nst the same, t he AO is direct ed to ve rify the A ppellant 's ret urn of i nc ome for t he previ ous and s ubs equent years and ascertai n the turnov er offered to tax agai nst which TDS c redit is allowable vis-à-vis TDS credit available i n For m 26AS of t he Appel lant in each of the years. The AO is also dir ect ed to allow TDS credit as per t he turnover offered to tax during t he year under consideratio n subject to availability of T DS credit availabl e as per 26AS after dul y verify TDS a vailable in Form 26AS of the Appell ant. In case the TDS credit is no t appeari ng on the conc erned PAN o f the Appellant, t he latter may b e as ked to get t he TDS retur n revised by the deductor s o that the TDS gets reflected on t he PAN of t he Appellant and onl y the n al low the TDS c redit. The AO may provide o pportuni ty of bei ng heard to the Appella nt for c arr yi ng out necess ary veri fication. The appe al filed on Gr ound No 1 to 2 are Par tly a llowed for statistical pur poses.”
Further aggrieved, the assessee is in appeal before the Tribunal.
Before us, ld. AR has filed a summary of the TDS credit not allowed alongwith his explanation:
| Sr. No. | Particulars | Amount (in Rs.) |
|---|---|---|
| 1. | Tax Credit appearing in Appellant's Form No. 26AS of A.Y. 2021-22 | 1,03,512 |
| 2. | Tax Credit appearing in Appellant's Form No. 26AS of A.Y. 2022-23 | 1,20,904 |
| 3. | Tax Credit appearing in Appellant's Form No. 26AS of A.Y. 2023-24 | 4,19,832 |
| 4. | Tax Credit appearing in Appellant's Form No. 26AS of A.Y. 2025-26 | 8,000 |
| 5. | Tax Credit appearing in associate concern - DHS LLP Form No. 26AS (AACFD4815A) -A.Y. 2023-24 | 2,26,636 |
| 6. | Tax Credit appearing in associate concern -DHS LLP Form No. 26AS (AACFD4815A) -A.Y. 2024-25 | 1,26,202 |
| 7. | TDS details related to payment received post deduction of tax | 1,57,226 |
| TOTAL | 11,62,312 |
It has been explained that in respect of S.No. 1 to 4 above, the credits are appearing in Form 26AS o f either assessee itself or its associate concerns while in respect of S.No. 5 & 6, there is no e ntry in Form 26AS. Even though ld. CIT(A) has directed the AO to verify and allow due credit. The assessee is aggrieved with the burden cast upon it to get the TDS return revised by the decuctor so that T DS gets reflected on the PAN o f the assessee to get the TDS credit.
In this regard, ld. AR has placed reliance o n the decision of the co-ord inate bench of ITAT, Chennai in ITA No s.2467, 2526, 2527, 2656, 2657, 2668 & 2684/Chny/2025, order dated 31.12.2025 in his case wherein an identical issue and facts, following directions were given:
“7 . The rati o laid down i n the above decision of t he Ho n'bl e High C ourt is that claim for TDS credit to t he assessee cannot be deni ed on the t echnical gr ound that the TDS certificate is in the name of t he sister concer n after havi ng assessed the income in the hand s of t he assessee. In t he pres ent case we no tice that the AO has deni ed t he credit of TDS to the ass essee on t he ground tha t i n Form 26AS the T DS is against the name of t he sister concer ns and not i n the name o f the assessee. Ther efore i n o ur considered view the above ratio is applicabl e to assess ee's case also. In vi ew of these discussions w e ar e remitti ng the issue back to the AO to allow cr edit of TDS to the ass essee e ven to thos e appeari ng i n the name of the sister concer ns pr ovided assessee's sist er c oncern had not availed benefit of such TDS certificates. Needl ess to say that the assessee be given a reasonable opport unity o f being heard. It is ordered accordi ngly.”
In view of abo ve, ld. AR has submitted that similar direction be issued to the ld. AO in the instant case.
On the o ther hand, ld. DR has relied on the order of ld. CIT(A) and has argued that the directio ns issued to ld. AO are in consonance with the relevant provisions of the Act and he nce there is no cause of grievance to the assessee.
We have heard the rival submissions and perused the material placed on record. We are of the co nsidered view that while the require d verification has to be carried out by the ld. AO, the assessee cannot be directed to ensure that the deductor files r evised TDS returns. According ly, respectfully following the decision of the co-ordinate bench, we remit the issue b ack to the AO to allow credit of TDS after making requisite verification to e nsure that the benefit of such TDS has not been claimed by the assessee/sister concerns in any assessment year.
In the result, assessee’s appeal is allowed for statistical purposes.