Denying TDS Credit available in Form 26AS and raising demand is abuse of Authority. ITAT Jabalpur in Ramesh Prasad Yadav vs CPC, Bangalore ITO (ITA No. 34/Jab/2023, 22-Sep-2023)

Facts of the case: AO raised a demand in intimation u/s 143(1) of the Act without giving credit of the amount of the TDS.

The credit of TDS was denied as barred by limitation because the assessee in the return of income mistakenly reported the amount of TDS as advance tax. But in the total, no excess claim of the tax has been made by the assessee.

TDS was already appearing in form no. 26AS. A copy of the said form has been filed by the assessee before the AO along with the rectification application. Ignoring the TDS credit available to the assessee, and then raising the demand is abuse of the authority.

The order of the AO passed u/s 143(1) of the Act is in gross negligence of his duty.