The petitioner in this case filed their tax return, and a credit of Rs. 7,65,000/- was reflected in Form 26AS linked to the petitioner’s PAN. However, upon scrutiny, it was found that the total amount deducted by way of TDS for the assessment year 2020-2021 was Rs. 18,53,863/-. The petitioner, therefore, filed a rectification petition seeking adjustment for the full amount deducted. The rectification petition was disposed of, stating that no further payment was due. Dissatisfied with this decision, the petitioner filed a writ petition.
The petitioner’s counsel pointed out that while the total TDS deduction was Rs. 18,53,863/-, credit was only given for Rs. 10,88,863/-. The standing counsel for the respondents acknowledged this discrepancy.
The court observed that since credit was not provided for the entire amount deducted as TDS, specifically the differential amount of Rs. 7,65,000/-, as indicated by the documents on record, the petitioner is entitled to a refund for this amount. Therefore, the court deemed it necessary to interfere with the impugned orders.
