TDS credit Entitlement

This ruling reinforces a critical compliance principle, substantive entitlement to TDS credit prevails over procedural mismatches in reporting systems. 

The Tribunal rejected the approach of making TDS credit conditional upon deductor action, recognizing that such compliance is beyond the assessee’s control. It clarified that once income is taxed in the assessee’s hands, corresponding TDS must follow, subject only to verification that double credit is not claimed. 

The decision significantly reduces hardship in cases involving cross-PAN reporting and Form 26AS discrepancies.