SHOBHA SHYAMSUNDER,CHENNAI V. ITO NCW 10(3), CHENNAI

ITA 1276/CHNY/2025

AI Insights

The case revolves around Shobha Shyamsunder, a senior citizen and widow, who appealed against the decision of the Income Tax Officer and the Commissioner of Income Tax (Appeals) regarding the non-credit of TDS and subsequent refund for the assessment year 2019-20. After her husband's death, she disclosed his income in her tax return and claimed the corresponding TDS credit. However, her claim was denied initially due to the non-reflection of the TDS in her own 26AS form and technical issues in the ITBA system. The Tribunal, emphasizing the principle that substance prevails over form, ruled in her favor, allowing the TDS credit and directing the issuance of a refund.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708137 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V.SUPRAJA
• Keywords: Set aside; TDS
• Section: 154

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI श्री यस यस विश्वनेत्र रवि, न्यावयक सदस्य एवं श्री अविताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1276/Chny/2025 Assessment Years: 2019-20 Shobha Shyamsunder, C/o.M/s.Mohnot Mahaaveer and Company, LLP, Chattered Accounts, No.28, Old No.38, Mezzanine Floor, Shakti Apartments, College Road, Nungambakkam, Chennai-600 006 [PAN: AXFPS8261H] Income Tax Officer, Non-Corp Ward-10(3), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : None प्रत्यर्थी की ओर से /Revenue by : Ms.V.Supraja, Addl.CIT सुनवाई की तारीख/Date of Hearing : 15.07.2025 घोषणा की तारीख /Date of Pronouncement : 18.07.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No. ITBA / APL / S / 250 / 2024-25 / 1075350260(1) dated 31.03.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), Addl / JCIT(A), Aurangabad for the assessment year 2019-20. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. ITA No.1276/Chny/2025 Page - 2 - of 4 2.0 The only issue raised by the assessee through its grounds of appeal is regarding non credit of TDS and pursuant refund to the assessee. The assessee is a senior citizen who lost her husband on 11.01.2018. It has been submitted that upon the death of her husband the assessee had offered husband’s income amounting to Rs. 15,25,833/- in her hands and claimed the corresponding credit of TDS Rs.1,52,606/- pertaining to her husband. Admittedly the assessee being not adequately conversant with tax laws, had not filed her return of income as legal heir of her husband and had claimed credit of TDS qua the amount of money which was indicated in the 26AS of her husband. The Ld. AO had denied her the claim of TDS on the premise that the impugned amount was not reflected in the 26AS of the assessee. The assessee moved a rectification petition u/s 154 which was also rejected by the Ld.AO. The Ld.CIT(A) sustained the order of the Ld.AO invoking provision of rule 37BA of the Act holding that disclosure of her husbands income in her hands alone would not make the assessee eligible for claim of TDS credit. The Ld.CIT(A) also observed that there are technical difficulties in the ITBA system of Revenue to allow the impugned credit to the assessee. 3.0 Per contra, the Ld. DR relied upon the order of lower authorities. 4.0 We have heard rival submissions in the light of material available on records. It is an undisputed fact of the case that the assessee is a ITA No.1276/Chny/2025 Page - 3 - of 4 senior citizen lady apparently not conversant with the tax intricacies. It is also an undisputed fact of the case that the assessee had offered the impugned income of Rs. 15,25,833/- pertaining to late husband, in her return of income and consequently claimed the corresponding credit of TDS Rs.1,52,606/-. Disclosure of income and credit of TDS goes hand in hand i.e TDS credit can only be allowed if there is a corresponding disclosure of income. In the instant case, the income pertaining to the late husband stands disclosed by the assessee and therefore she becomes eligible to claim credit of corresponding TDS Rs.1,52,606/-. The argument of the revenue regarding technical deficiencies, non- disclosure in 26AS, non-filing of return as legal heir of her husband would not be sufficient to deprive the honest tax payer of the due credit of the TDS. It is trite law that substance always prevails over the form. In the instant case, the widow lady who is a senior citizen has honestly come forward to disclose the income of her deceased husband and therefore has every right to claim the corresponding TDS. The Ld. DR could not controvert our queries as to if the assessee did not had any rightful claims qua the her claim of TDS credit Rs.1,52,606/-, what right did the revenue had to tax impugned income of Rs. 15,25,833/- pertaining to her late husband. Accordingly, we are of the considered view that the assessee is right in claiming the TDS credit Rs.1,52,606/- and deserves to be allowed the same. We therefore set aside the order of lower ITA No.1276/Chny/2025 Page - 4 - of 4 authorities and direct the Ld.AO to allow the assessee the TDS credit of Rs.1,52,606/- and issue corresponding refund if any. Accordingly, all the grounds of appeal raised by the assessee are therefore allowed. 5.0 In the result, the appeal of the assessee is allowed. Order pronounced on 18th , July-2025 at Chennai. Sd/- (यस यस धवश्वनेत्र रधव) (SS VISWANETHRA RAVI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 18th , July-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "