A legal heir must file tax returns in the deceased's name to receive TDS credits, otherwise the claim is invalid.

ORDER :

BHARGAV D. KARIA, J.

1. Heard learned advocate Mr. Krutarth Desai for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for the respondent.

2. This case is a classic case of ill-advice to a layperson.

3. The facts giving rise to this petition can be summarized as under:

3.1 The petitioner Kusumben Kishorkumar Rana filed return of income for the Assessment Year 2014-15 under advice of advocate showing salary income of her late husband-Kishorkumar Kalyanbhai Rana, who expired on 12.10.2014.

3.2 Late husband of the petitioner was working with respondent No.3-Oil and Natural Gas Company Limited. As per Form No.16 issued by the respondent No.3 for the period from 01.04.2013 to 31.03.2014 for the Assessment Year 2014-15, total salary income of the late husband of the petitioner was Rs. 38,73,055.31 out of which, TDS of Rs. 9,90,334/- was deducted.

3.3 Instead of filing the return of income in the name of late husband of the petitioner in capacity as legal representative under section 159 of the INCOME TAX ACT , 1961 [for short ‘the Act’], the petitioner filed return of income in her name showing total income of Rs. 30,63,639/- [income from salary of Rs. 30,41,286/- and income from other source of Rs. 22,353/-] and claimed TDS of Rs. 9,90,334/- to get the refund of Rs. 2,22,800/-. However, the intimation under section 143(1) of the Act dated 19.01.2017 did not give the credit of TDS of Rs. 9,90,334/- as the TDS was not deducted in the PAN of the petitioner and demand of Rs. 11,80,800/- was raised.

3.4 The petitioner thereafter preferred an application under section 154 of the Act on 31.01.2024 to rectify the mistake committed by the petitioner. However, the said application was rejected by order dated 20.02.2024 on the ground that no TDS was deducted in the name of the petitioner and therefore, no rectification is required to be made to the order passed under section 143(1) of the Act.

4. Being aggrieved, the petitioner has preferred this petition with the following prayers:

“(A) Your Lordships may be pleased to admit and allow this petition.

(B) Your Lordships may be pleased to quash and set aside the letter dated 20.02.2024 (Annexure A) and rectification order (Annexure F) and direct the present respondent to process the return of income for A.Y. 2014-15 by providing credit of TDS as to the tune of Rs. 9,90,334/-.

(C) Your Lordships may be pleased to hold and declare that the petitioner is lawfully entitled for credit of TDS to the tune of Rs. 9,90,334/- and necessary adjustment may please be ordered to be made in re-processing of return of income for the A.Y. 2014-15 by granting credit of TDS to the tune of Rs. 9,90,334/-.

(D) Your Lordships may be please to alternatively to permit the petitioner to make fresh application under the provisions of section 154 with detailed representation and on such representation being made, the authorities may please be directed to consider the claim of the petitioner in accordance with law.

(E) Your Lordships may be pleased to grant any such other and further relief in the interest of justice.”

5. Learned advocate Mr. Krutarth Desai for the petitioner submitted that the petitioner has filed return of income for A.Y. 2014-15 as per the advice received from the advocate claiming TDS of her late husband in the said return. It was submitted that as per Form No.16 issued by the respondent No.3-ONGC, the return is required to be filed by the petitioner in name of late husband of the petitioner in capacity of legal heir, however, the petitioner was not advised properly and such mistake is committed by filing the return in her name showing the salary income in her return of income.

5.1 It was further submitted that the petitioner has only earned the interest income of Rs. 22,000/- for the period from April 2013 to March 2014 and the petitioner was not liable to file any return of income having income below the taxable limit.

5.2 It was therefore, prayed that the intimation given by the respon