AO Neither Rejects Nor Accepts Rectification Application on TDS credit: ITAT Remands Rs. 35k TDS Credit of Trust for Reassessment

In a case highlighting administrative lapse, the Income Tax Appellate Tribunal (ITAT) has remanded a matter involving TDS credit back for reassessment. The case pertains to a charitable trust that had filed a rectification application with the Assessing Officer (AO) to get credit for Tax Deducted at Source (TDS), but the AO had neither accepted nor rejected the application, leaving the matter in limbo. The ITAT observed that it is the duty of the AO to dispose of such applications in a timely manner. The AO's inaction had denied the trust its rightful TDS credit. The tribunal, therefore, set aside the related order and sent the issue back to the AO with a clear direction to consider the rectification application, verify the TDS claim, and pass a fresh order in accordance with the law.