| COURT: | ITAT Delhi |
| CORAM: | B. R. R. Kumar (AM), Sushma Chowla (JM) |
| SECTION(S): | 195, 201, 205 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | TDS credit |
| COUNSEL: | Ajay Vohra |
| DATE: | December 23, 2019 (Date of pronouncement) |
| DATE: | March 28, 2020 (Date of publication) |
| AY: | 2015-16 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 199/205: In a case where the deductor has deducted tax at source but has not deposited the tax with the Govt, the assessee cannot be made to suffer. U/s 205, the assessee/ deductee cannot be called upon to pay the tax. Credit for the tax deducted at source has to be allowed in the hands of the deductee irrespective of whether the same has been deposited by the deductor to the credit of the Central Government or not (Yashpal Sahani 165 TM 144 (Bom), Sumit Devendra Rajani 49 TM.com 31 (Guj) & Pushkar Jain 103 TM.com 106 (Bom) followed) | |
In terms of section 205 of the Act, the assessee/deductee cannot be called upon to pay tax, to the extent to which tax had been deducted from the payments due. Consequently, it follows that credit for such tax deducted at source, which is deducted from the account of the deductee, by the deductor, is to be allowed as taxes paid in the hands of the deductee, irrespective of the fact whether the same has been deposited by the deductor to the credit of the Central Government or not. The deductee in such circumstances cannot be denied credit of tax deducted at source on its behalf. Under the Act, the provisions are enshrined under which recovery of tax from the account of the person, who had deducted the such tax, are provided
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