Widow Eligible To Claim TDS Credit On Deceased Husband's Income: ITAT

Sonjoy Sarma (Judicial Member) and Rakesh Mishra (Accountant Member) stated as per sub-rule (2) of Rule 37BA and sub-rule 3(i) of the Income Tax Rules, 1962, if the income is assessable in the hands of any other person, the credit of TDS shall be given to him for the year in which the income is shown.

In this case, after husband's death, the assessee (wife of Late Jagbandhu Das) being the legal heir succeeded the proprietorship concern and became the proprietor.

Since the income from the said proprietorship concern as well as the interest income in the name of Late Jagbandhu Das were duly offered for taxation by the assessee, the corresponding TDS was claimed by her in the ITR.

However, the Assessing Officer did not grant the assessee credit for TDS in the name of the Late Jagbandhu Das by referring to the unmatched TDS. The short credit of TDS on this count is Rs.22,06,321/-. Consequential excess interest under Section 234B and 234C of the Act was also charged.

Aggrieved with the assessment order, the assessee preferred an appeal before the Addl./Joint CIT(A), who dismissed the appeal.

As per the assessee submitted that in addition to her own income of Rs.59,33,102/-, since the assessee has offered the income of Rs.73,13,808/- (which is the income of the proprietorship firm of her deceased husband and his interest income, on whose behalf the return of income for the said year was not filed nor the tax credit for the TDS of Rs.22,06,321/- on his behalf was made) for taxation in her return of income, she is entitled to claim the corresponding TDS of Rs.22,06,321/- as tax credit in terms of Rule 37BA(3)(i) of the Income Tax Rules, 1962.

The bench opined that the credit for TDS made in the name of her deceased husband shall be allowed to her as per law as the income has been shown by her in her return of income and the assessee may approach the deductor to get the records corrected as required under rule 37BA, if required, so that the TDS is reflected in her PAN and file the evidence before the Ld. AO that the credit for the TDS has not been availed by any other person.

In view of the above, the Tribunal allowed the appeal.

Case Title: Lovely Das v. Addl/JCIT, Nashik

Case Number: I.T.A. Nos.: 291, 292, 293 & 294/KOL/2025

Counsel for Appellant/ Assessee: Manish Tiwari

Counsel for Respondent/ Department: Soumitra Ghosh

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