The Income Tax Appellate Tribunal (ITAT) Kolkata Bench has directed that a widow be granted credit for tax deducted at source (TDS) in the name of her late husband, after she had declared his income in her own tax returns (ITRs).
The bench of Sonjoy Sarma (Judicial Member) and Rakesh Mishra (Accountant Member) has observed 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.
The appellant, Lovely Das of Kolkata, became proprietor of her late husband Jagbandhu Das’s sole proprietorship, M/s Elco Enterprise, after his death in June 2016. In addition to her own interest income, she declared in her returns the business income and bank interest earned in her late husband’s name, along with corresponding TDS amounts. However, the Centralised Processing Centre (CPC) allowed her credit only for TDS appearing in her own name, disallowing the portion — totalling over ₹72 lakh across four years — that was reflected against her late husband’s PAN.
For instance, in AY 2019-20, against a claimed TDS credit of ₹46.52 lakh, the CPC allowed only ₹24.46 lakh, denying ₹22.06 lakh linked to her husband’s income. This led to substantial additional tax demands and interest under Sections 234A, 234B, and 234C.
The Assessing Officer and Commissioner (Appeals) [Addl./JCIT(A)-1, Nashik] held that under Rule 37BA of the Income Tax Rules, TDS credit cannot be transferred to another person unless the deductor reports it in that person’s name. They faulted the appellant for not ensuring the deductors updated records after her husband’s death, and suggested she should have filed returns as legal heir in his name to claim the credit.
Represented by FCA Manish Tiwari, the appellant argued that denying TDS credit when the related income was already taxed in her hands amounted to double taxation, which is impermissible in law.
The ITAT noted that Rule 37BA(3)(i) specifically provides that TDS credit shall be given to the person in whose hands the related income is assessed. Since the appellant had included her husband’s business and interest income in her own returns, she was entitled to claim the corresponding TDS, provided no other person had claimed it.
The bench directed the Assessing Officer to allow the credit, subject to verification that it had not been availed by anyone else. It also permitted the appellant to approach the deductors to update records so that the TDS appears in her PAN.
Case Details
Case Title: Lovely Das Versus Addl/JCIT, Nashik
Case No.: I.T.A. Nos.: 291, 292, 293 & 294/KOL/2025
Date: 04-August-2025
Counsel For Appellant: Manish Tiwari, FCA
Counsel For Respondent: Soumitra Ghosh, Addl. CIT, Sr. DR.
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