Bombay High Court
MEENAKSHISUNDARAM SANKARNARAYANversusDEPUTY COMMISSIONER OF INCOME TAX CIRCLE AND ORS
- Decided
- Disposal
- Disposed Off
Holding
The Court quashed the order directing non‑credit of TDS and held that the Assessing Officer must re‑examine the petitioner’s documents and credit the TDS if duly deducted.
Summary
The petitioner, Meenakshisundaram Sankarnarayanan, challenged an order dated 7 October 2025 by the Commissioner of Income Tax (Appeals) that directed the Assessing Officer not to credit tax deducted at source (TDS) because it was not reflected in Form 26AS, and a subsequent order dated 17 February 2026. The High Court found the facts identical to a previously decided writ petition (No. 6662 of 2026) and, following that precedent, quashed the impugned orders. The Court directed the Assessing Officer to re‑examine the documents submitted by the petitioner to verify the deduction of TDS from his salary and to credit the tax if the deduction is substantiated, citing the decision in Manohar Jhunjhunwala. The re‑examination was to be completed within six weeks of the order. The writ petition was disposed of without any order as to costs, and the matter was placed on the compliance board for reporting.
Issues considered
- Whether the Assessing Officer can refuse to credit TDS when it is not reflected in Form 26AS.
- Whether the petitioner is entitled to credit of TDS deducted from salary based on documentary evidence.
- Whether the earlier order directing non‑credit of TDS is legally sustainable.
Subjects
- TDS
- Form 26AS
- Income Tax Act
- Credit of tax deducted at source
- Writ petition
- Re‑examination
- Assessing Officer
Judgment
13.wp.7553.26.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 7553 OF 2026
Meenakshisundaram Sankarnarayanan .. Petitioner
Versus
Deputy Commissioner of Income Tax
Circle-1 & Ors .. Respondents
Mr. Nageshwar Rao (through VC), with Radha Halbe,
Advocates for the Petitioner.
Mr. Akhileshwar Sharma, Advocates for the Respondents /
Revenue.
ANJALI by
Digitally signed
ANJALI
TUSHAR
CORAM: B. P. COLABAWALLA &
TUSHAR ASWALE
Date:
ASWALE 2026.09.22
11:22:50 +0530
FARHAN P. DUBASH, JJ.
DATE: SEPTEMBER 16, 2026
P. C.
1. It is common ground before us that the facts in the present case
are identical to the facts in Writ Petition No.6662 of 2026. For the reasons
stated in our order passed today in Writ Petition No.6662 of 2026, we hereby
quash and set aside the impugned order dated 7th October 2025 passed by the
learned CIT(A) insofar as it gives a direction to the Assessing Officer not to
give credit of the TDS deducted merely because it is not reflected in the
Petitioner’s Form 26AS. We also set aside the order dated 17th February 2026
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13.wp.7553.26.doc
passed by Respondent No.1 to the extent of giving effect to the order dated 7 th
October 2025.
2. We now direct the Assessing Officer, namely, the 1st Respondent
to re-examine the documents submitted by the Petitioner to substantiate his
claim that TDS has been deducted from the salary paid to him by Respondent
No.3. If the Assessing Officer is satisfied with the explanations given by the
Petitioner that TDS has been deducted from his salary, then naturally credit
for the same will have to be given to the Petitioner as per the directions of
this Court in Manohar Jhunjhunwala (supra).
3. We direct that this entire exercise shall be done by the Assessing
Officer within a period of six weeks from the date of this order being brought
to the notice of the Assessing Officer (1st Respondent).
4. The Writ Petition is disposed of in the aforesaid terms. However,
there shall be no order as to costs.
5. Though we have disposed of the above Writ Petition, we place it
on Board for reporting compliance on 4th November 2026.
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6. This order will be digitally signed by the Private Secretary/
Personal Assistant of this Court. All concerned will act on production by fax
or email of a digitally signed copy of this order.
[FARHAN P. DUBASH, J.] [B. P. COLABAWALLA, J.]
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SEPTEMBER 16, 2026
Aswale
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