TDS CREDIT ALLOWED IN CASE THERE IS NO ENTRY IN FORM 26AS

  S.199: Deduction at source-Credit for tax deducted - TDS Credit must be given even if TDS

Certificate is not available/ entry is not shown in Form 26AS. [S.26AS]
The assessee claimed credit for TDS which was denied by the AO on the ground that the claim did not match the entries shown in Form No. 26AS and that there was a discrepancy. On appeal, the CIT(A) held that the assessee would be entitiled to credit to the extent shown in the computer system of the department. On further appeal by the assessee to the Tribunal HELD:
The AO is not justified in denying credit for TDS on the ground that the TDS is not reflected in the
computer generated Form 26AS. In Yashpal Sahni v. ACIT (2007) 293 ITR 539 (Bom) the Bombay
High Court has noted the difficulty faced by taxpayers in the matter of credit of TDS and held that
even if the deductor had not issued a TDS certificate, still the claim of the assessee has to be
considered on the basis of the evidence produced for deduction of tax at source. The Revenue is
empowered to recover tax from the person responsible if he had not deducted tax at source or after deducting failed to deposit with Central Government. The Delhi High Court has in Court On Its Own Motion Vs. CIT(2013) 352 ITR 273(Delhi) directed the department to ensure that credit is given to the assessee even where the deductor had failed to upload the correct details in Form 26AS on the basis of evidence produced before the department. Therefore, the department is required to give credit for TDS once valid TDS certificate had been produced or even where the deductor had not issued TDS certificates on the basis of evidence produced by assessee regarding deduction of tax at source and on the basis of indemnity bond. (A. Y. 2007-08)(ITA No. 8532/Mum/2011, dt. 13.09.2013.)
Citicorp Finance (India) Ltd. v. ACIT. (Mum.)(Trib.)