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BHARGAV D. KARIA, D. N. RAY
Gayatri Snehal Rao – Appellant
Versus
Income Tax Assessing Officer – Respondent
JUDGMENT :
Bhargav D. Karia, J.
1. This Court passed the following order on 29.04.2024:
2. It was submitted by learned advocate for the petitioner that the respondent authorities have issued the intimation under Section 143(1) of the Income Tax Act, 1961 for the assessment year under consideration being A.Y. 2020-21 and 2021-22 and also intimated that the same may be considered as a notice of demand under Section 156(3) of the Act.
2.1 Learned advocate for the petitioner referred to and relied upon the Press Release dated 11th March, 2016 issued by the Central Board of Direct Taxes wherein it is mentioned that as per the Office Memorandum issued on 11th March, 2015 wherein it is re-emphasised that the Assessing Officer shall not enforce demands created on account of mismatch of credit due to non-payment of TDS amount to the credit of the Government by the deductor. Reliance was also placed on the following orders.
(i) Shantanu Awasthi v. Inco
Tax demands cannot be enforced against deductees if TDS has been deducted but not deposited by the deductor, as per Section 205 of the Income Tax Act.
The taxpayer is entitled to TDS credit despite the deductor's failure to remit the deducted taxes, ensuring no coercive demand is imposed on the taxpayer according to statutory provisions and directi....
The court affirmed that an employee is entitled to TDS credit despite the employer's failure to deposit it, preventing unjust tax liability on the employee.
Section 205 of the Income Tax Act bars the recovery of tax withheld by the employer from the employee, and emphasizes the duty of the employer to deposit the deducted tax with the revenue in accordan....
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