In a recent decision, Mumbai ITAT emphasised that taxpayers must substantiate their claim of non-receipt of TDS credit by submitting essential documents such as Form No.16 or bank statements. The bench underscored the importance of verifiable evidence in tax assessments.
The ITAT bench, led by Narender Kumar Choudhry and S. Rifaur Rahman, highlighted deficiencies in the taxpayer’s documentation, noting the absence of proper TDS working papers and supporting salary slips. Consequently, the Commissioner’s decision not to grant TDS credit was upheld.
The case involved a taxpayer reporting a total income of ₹ 42,40,705, with a significant portion derived from salary. Despite claiming TDS credit of ₹ 10,45,439, deducted by the employer, the taxpayer failed to demonstrate the employer’s non-compliance through Form No.26AS.
Both the AO and CIT affirmed the denial of TDS credit due to the employer’s failure to deposit the deducted amount with the government. The taxpayer’s assertion regarding the unavailability of Form No.16 from the employer was duly noted by the bench.
Highlighting the employer’s recurrent default in depositing TDS, the bench referenced a similar case adjudicated in Pune Tribunal. In that instance, the Tribunal allowed TDS credit, emphasising the Revenue’s responsibility to recover the amount from defaulting employers, not taxpayers.
The bench reiterated that taxpayers bear the burden of proof and must furnish relevant documents to substantiate their claims. Only through diligent documentation can taxpayers assert their rights accurately in tax matters.
