Transferees Eligible to Claim TDS Credit Even if Certificates are in Name of Amalgamated/Demerged Company: ITAT

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) ruled that transferees are entitled to claim Tax Deducted at Source (TDS) credit, even if certificates are in the name of the amalgamated or demerged company. Assessee Percy Pardiwala argued for TDS credit amounting to Rs. 8,13,81,645/- not granted by the AO due to certificate name mismatch. \r

ITAT directed the AO to allow TDS credit to the assessee, given the income assessment. Additionally, the tribunal overturned the disallowance of 70% of provision for outstanding expenses under Section 40(a)(ia) of the Income Tax Act, noting the provision was an ascertained liability. \r

The bench, comprising C V Bhadang (President) and B.R. Baskaran (Accountant member), directed the deletion of the disallowed amount totaling Rs. 109,46,79,368/-.