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By the Delhi Tribunal pathbreaking decision in (2023] 102 ITR (Trib) 399 (ITAT[Del]) the taxpayer is required to be put to notice by CPC before making a proposal for adjustment/disallowance of any TDS credit duly highlighted in taxpayers 26AS. 

It so happened that in this case Central processing centre did not give credit of certain TDS though the same was appearing in form 26AS on the pretext that the corresponding income has not been shown by the appellant in its return of income, for which the TDS credit has been claimed. Though this case pertains to a company but often this kind of difficult situations are experienced more often by individuals. 

Reading out the mandate of law the bench held that before making any such adjustment, the assessee should be put to notice. Since this has not been done the jurisdiction of Central processing centre in doing such adjustment sans any notice is vitiated according to the bench. 

In this case the assessee has established that such corresponding income is declared by the parent company backed by a confirmation and ITr copy. 

Hope that the department accepts this decision of the learned bench and also the CBDT should issue an instruction immediately that could prevent CPC from making such TDS credit adjustments in future. 

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