IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.1533/KOL/2025 (निर्धारण वर् ा /Assessment Year : 2024-2025)

Ajay Kumar Goel Vs D CIT, Circle-52(1), Kolkata Sobha Magnolia, Flat No.C182, Bannerghatta Main Road, Bengaluru-560029 PAN No. :AEAPG 8383 C ..

(अपीलधर्थी /Appellant) (प्रत्यर्थी / Respondent)

/Assessee by : Shri S.K.Tulsiyan, Advocate निर्धाररती की ओर से

& Abha Agarwal, FCA /Revenue by : Shri Sandeep Lakra, Sr. DR रधजस्व की ओर से : 24/11/2025 Date of Hearing सुनवाई की तारीख /

: 24/11/2025 Date of Pronouncement घोषणा की तारीख/

O R D E R

आदेश /

Per Bench :

This is an appeal filed by the assessee against the order passed by the ld.Addl/JCIT(A), Gwalior, dated 02.06.2025 for the assessment year

2024-2025.

2. It was submitted by the ld. AR that the assessee is an employee of M/s Think & Learn Private Limited. It was the submission that the assessee had been receiving salary from the said concern. The said concern had deducted TDS from his salary to an extent of Rs.14,881,489/-. It was the submission that the said concern admittedly had not deposited the TDS to the account of the Central Government. When the assessee had filed his return of income, the assessee had claimed credit of the TDS was deducted in the salary. It was submission that in the intimation issued, the credit of the TDS had not been granted and a demand was raised against the assessee in lieu of the credit of the TDS not granted. It was submission that in view of the Instruction issued by CBDT in Instruction No.275/29/2014- (IT)-(B), dated 01/06/2015, the assessee should be put at any inconvenience on account of default of deposit of tax into the Government account by the deductor. The said instruction reads as follows:-

INSTRUCTION NO.275/29/2014-IT(B)

SECTION 199 OF THE INCOME-TAX ACT, 1961-DEDUCTION OF TAX AT SOURCE-CREDIT FOR TAX DEDUCTED-NON-DEPOSIT OF TAX DEDUCTED AT SOURCE INSTRUCTION NO.275/29/2014-IT-(B), DATED 1-6-2015 Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter-XVII of the Income-tax Act, 1961 (hereafter ‘the Act’) but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to these taxpayers and consequent raising of demand.

2. As per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced coercively.

3. This may be brought to the notice of all the assessing officers in your region so that if the facts of the case so justify, the assessees are not put at any inconvenience on account of default of deposit of tax into the Government account by the deductor.

4. This issues with the approval of Chairperson, CBDT.

3. The assessee could not be fastened with the liability in respect of the TDS deducted but not credited by the employer to the account of the Central Government. The Ld. AR also placed reliance on the Office Memorandum issued by the CBDT dated 11/03/2016 to the same effect which reads as follows:-

4. It was further submission that in view of the provisions of section 205 of the Act also the assessee could not be fastened with the liability in respect of the TDS which has been deducted from salary but not credited by the employer to the account of the Central Government. The Ld. AR also placed reliance on the decision of the coordinate bench of this Tribunal Mumbai Bench in the case of Mr. Aditya Ramniwas Dhoot in ITA No.