TDS credit allowed despite deductor’s error in name and PAN of former firm: ITAT { Upasani Super Speciality Hospital (P.) Ltd. vs. Income -tax Officer [2025] 179 taxmann.com 199 (Mumbai – Trib.)}
Facts:
Assessee company took over a hospital business from a partnership firm. During the year, certain payments were made to the company after TDS, but the deductors mistakenly mentioned the old firm’s name and PAN. The income was offered to tax by the company, while the old firm had no business and did not claim the TDS credit. The department denied the company’s claim as the TDS was not reflected in its Form 26AS.
Issue:
Whether TDS credit can be allowed to the company when tax was deducted under the PAN of the erstwhile firm due to the deductor’s mistake.
Held:
ITAT held that TDS credit should follow the income. Since the income was taxed in the company’s hands and the firm had not claimed credit, the company was entitled to it. Denial merely due to a deductor’s error in quoting the wrong PAN would result in double taxation. AO was directed to allow the TDS credit after verification
