HARPAL KAUR,CHANDIGARH V. INCOME TAX OFFICER WARD 2(1), CHANDIGARH

ITA 141/CHANDI/2025

AI Insights

The case involves Smt. Harpal Kaur, the legal heir and wife of the late Justice S.S. Nijjar, who appealed against the denial of TDS credit for the assessment years 2022-23 and 2023-24. The TDS credits were initially not allowed by CPC Bangalore, leading to her filing an application under section 154, which was also rejected. The CIT (Appeals) upheld the rejection, citing Rule 37BA, which states that TDS credit can only be given to the person in whose name it is available. The Tribunal, however, found that the legal heir, who filed the returns in a representative capacity, is entitled to the TDS credits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717360 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Appeal Filed On: 28-01-2025
• Laws Referred To: Rule 37BA
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: T.N. SINGLA
• Keywords: TDS
• Section: 154

Judgement Text

"आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA Nos 140 & 141/CHD/2025 Ǔनधा[रण वष[ / A.Y : 2022-23 & 2023-24 Smt. Harpal Kaur, C/o Kansal Singla & Associates, Sector 17-C, Chandigarh. Vs The ITO, Ward 2(1), Sector 17, Chandigarh. èथायी लेखा सं./PAN NO: BLSPN3584L अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Assessee by : Shri T.N.Singla, CA Revenue by : Shri Vivek Vardhan, Addl.CIT, Sr. DR Date of Hearing : 31.07.2025 Date of Pronouncement : 11.08.2025 PHYSICAL HEARING O R D E R PER RAJ PAL YADAV, VP The present two appeals are directed at the instance of the assessee against separate orders of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 03.01.2025 passed for assessment year 2022-23 and 2023-24. 2. The short issue involved in both the appeals relates to denial of TDS credit. The facts are common in both the years, Printed from counselvise.com ITA No.140 & 141/CHD/2025 A.Y.2022-23 & 2023-24 2 therefore, for the facility of reference, we take up the facts from assessment year 2022-23. 3. The appellant is a legal heir and wife of late Justice S.S.Nijjar, PAN No. AAHPN6038L. The assessee filed return of income for assessment year 2022-23 and 2023-24 in a representative capacity of late Shri Surinder Singh Nijjar. She claimed TDS credit of Rs.40,16,626/- and Rs.31,198/- respectively. The CPC Bangalore did not allow TDS credit of Rs.3,28,836/- and Rs.20,218/- in assessment year 2022-23 and 2023-24 respectively. The appellant filed an application u/s 154 which was also rejected. 4. The appellant carried the matter in appeal before the CIT (Appeals). Ld. CIT (Appeals) made reference to Rule 37BA and observed that TDS credit could only be given to the person against whose name such credit is available. He further advised the assessee that she should made a correction in the bank account so that TDS credit be given in her name. 5. We have duly considered the rival contentions and gone through the record carefully. The ld. CIT (Appeals) has failed to appreciate that this return was filed in a representative Printed from counselvise.com ITA No.140 & 141/CHD/2025 A.Y.2022-23 & 2023-24 3 capacity of the deceased assessee, hence, all his tax liability and TDS credits are to be borne by the assessee. In other words, if some taxes were required to be paid, then she would have discharged this liability, but if late Justice S.S.Nijjar was entitled for any TDS credit, then same has to be given to his representative, namely, Legal Heir. Therefore, ld. CIT (Appeals) has failed to appreciate the correct position of law while dismissing the appeal. We allow both the appeals and direct the AO, including CPC, Bangalore to grant credit of this TDS within one month from receipt of this order. 6. In the result, both the appeals are allowed.. Order pronounced on 11.08.2025. Sd/- Sd/- (KRINWANT SAHAY) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "