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THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
KAUSHIK GOSWAMI, VIJAY BISHNOI, CJ.
Dinendra Biswas, Son Of Late Dhirendra Nath Biswas – Appellant
Versus
Union Of India, Represented By The Secretary To The Government Of India, Ministry Of Finance, Department Of Revenue – Respondent
| Table of Content |
|---|
| 1. challenge against tax demand notices. (Para 2 , 3 , 4) |
| 2. petitioner's contention on tds credit. (Para 5 , 6) |
| 3. proof of tds deposits by employers. (Para 7 , 8 , 9) |
| 4. tax department's stance on tds reflection. (Para 10 , 11) |
| 5. court's reasoning on taxpayer's rights. (Para 12 , 13 , 14) |
| 6. ruling on credit of tax amount. (Para 15 , 16) |
JUDGMENT :
(Vijay Bishnoi, CJ.)
Heard Mr. G.N. Sahewalla, learned Senior Counsel assisted by Ms. K.Bhattacharyya, learned counsel for the petitioner. Also heard Mr. S.C. Keyal, learned Standing Counsel, Income Tax Department; Mr. T.J. Mahanta, learned Senior Counsel/Standing Counsel, Gauhati High Court for respondent No.5 and Ms. S. Agarwal, learned counsel appearing for respondent No.6.
2. This writ petition is filed by the petitioner challenging the demand notices issued by the Income Tax Department under Section 143(1) of the INCOME TAX ACT , 1961 (hereinafter to be referred to be “ INCOME TAX ACT ”) pertaining to different Financial Years starting from 2008-2009, 2010-2011, 2011-2012, 2012-2013 and 2013-2014, respectively, raising a demand for payment of taxes of Rs.8,40,370.00. The petitioner has also prayed to issue a direction to t
The responsibility to deposit TDS lies with the employer; demand for taxes is invalid if TDS was deducted but not reflected in official records.
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.
Employees cannot claim credit for TDS not remitted to the Income Tax Department, as credit is contingent upon actual payment to the government.
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.
Point of law: Where it provides that where tax is deductible at source, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.
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