PCIT v. Sankaranarayanan Rajshekar (2020) 269 Taxman 105 (Mad.)(HC)

S. 192 : Deduction at source-Salary-Failure to deposit tax deducted at source-Rectification application-Directed the Assessing Officer to consider the rectification application and pass orders on merits in accordance with law. [S. 143(3), 154, 199, Art. 226]

During relevant year, assessee received salary from third respondent after making tax deduction at source. Third respondent failed to pay tax so deducted to credit of revenue.  Assessing Officer while processing return filed by assessee, raised a demand which was nothing but tax already deducted from assessee’s salary by third respondent.  Assessee filed writ petition contending that Assessing Officer was not entitled to make such demand as it was for them to recover such tax deducted at source from third respondent. During pendency of proceedings, assessee made repeated request by way of rectification application before Assessing Officer but said application was not disposed of. Court held that it was appropriate to direct Assessing Officer to consider rectification application filed by assessee and pass orders on same on merits and in accordance with law. Matter remanded. (AY. 2009-10)