CBDT Instruction No. 5/2013 F.No.275/03/2013-IT(B),
dated 8.07.2013 for allowing credit of TDS in mismatched cases.
Instruction
No. 5/2013 F.No.275/03/2013-IT(B), dated 8.07.2013
1. The CBDT issues instructions with
respect to processing of Income-tax returns and giving credit for TDS thereon
in the case of TDS mismatch. A few of the instructions on this subject issued
in previous years are Instruction No. 1/2010 (25-2-2010) for returns pertaining
to A.Y, 2008-09; Instruction No. 05/2010 (21-7-2010), Instruction No. 07/2010
(16-8-2010) and Instruction No. 09/2010 (9-12-2010) for returns pertaining to
AY. 2009-10; Instruction No. 02/2011 (9-2-2011) for returns pertaining to A.Y.
2010-11; and Instruction No. 1/2012 (2-2-2012) and Instruction No. 04/2012
(25-5-2012) for returns pertaining to A.Y. 2011-12. The instructions gave
decisions and the manner in which the TDS claims were to be given credit while
clearing the backlog of returns pending processing. In the cases that did not
fall under the specific TDS amount limit or refund amount computed, the
residuary clause in these instructions gave the manner of processing those
returns and it stated that “TDS credit
shall be given after due verification".
2. The Hon’ble Delhi High Court vide
its judgment in the case Court On its Own
Motion v. UOI and Ors. (W.P. (C) 2659/2012 & W.P. (C)
5443/2012 dated 14-3-2013) has issued seven mandamuses for necessary action by
Income-tax Department, one of which is regarding the issue of non-credit of TDS
to the taxpayer due to TDS mismatch despite the assessee furnishing before the
Assessing Officer, TDS certificate issued by the deductor.
3. In view of the order of the
Hon’ble Delhi High Court (reference: para 50 of the order); it has been decided
by the Board that when an assessee approaches the Assessing Officer with
requisite details and particulars in the form of TDS certificate as an evidence
against any mismatched amount, the said Assessing Officer will verify whether
or not the deductor has made payment of the TDS in the Government Account and
if the payment has been made, credit of the same should be given to the
assessee. However, the Assessing Officer is at liberty to ascertain and verify
the true and correct position about the TDS with the relevant AO (TDS). The AO
may also, if deemed necessary, issue a notice to the deductor to compel him to
file correction statement as per the procedure laid down.
4. Thus, the manner laid down by the
Hon’ble HC in the above mandamus may be one of the method of due verification
as mentioned in the various instructions referred in para (1) above.
5. This
may be brought to notice of all Officers working under your jurisdiction for
compliance.
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