In Hemant Enterprises vs. ACIT (ITA No. 394/PUN/2025), the ITAT Pune held that once tax has been deducted at source and the assessee has received income net of TDS, credit cannot be denied due to the deductor’s failure to deposit the tax with the Government. The Tribunal clarified that entitlement to TDS credit flows from deduction, not from its reflection in Form 26AS. Recovery proceedings, if any, must be initiated against the deductor and not the deductee. The ITAT set aside the NFAC order and directed grant of TDS credit of ₹27.14 lakh after verification.