Where tax has been deducted at source from the assessee’s income, the assessee cannot be denied credit of such TDS nor can any demand be raised against him merely because the deductor failed to deposit the deducted tax with the Government. In view of section 205 of the Income-tax Act, recovery can be made only from the deductor. However, directions issued by the High Court to CBDT for modification of its software/system, being unrelated to the adjudication of the assessee’s rights and the merits of the case, are liable to be set aside. (AY .2020-21, 2021-22)