Aricent Technologies Holdings Ltd v ACIT ( Delhi) (Trib) www.itatonline .org

S. 199 : Deduction at source – Credit for tax deducted – Deducutor has deducted the tax at source though failed to deposit the tax with the Govt dedcutee cannot be made to suffer- 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 [ S.205 ]

Tribunal held that ,  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 . Followed Yashpal Sahani v. Rekha Hajarnavis, [2007] 165 taxman 144 (Bom.)  (HC) Sumit Devendra Rajani v ACIT ssistant Commissioner of Income-tax [2014] 49 taxmann.com 31 (Guj). (HC)  Pushkar Prabhat Chandra Jain vs. Union of India [2019] 103 taxmann.com 106 (Bom)  (HC (ITA No.5708/Del/2019, Dt. 23/12/2019) (AY. 2015-16 )