Kartik Sonavane Vs DCIT Circle-8
Forum-Gauhati High Court
Date-15th November, 2021

Sub-Whether an employee is entitled to get credit for the TDS deducted on salary even when the employer has defaulted in the payment of the tds so deducted?

The Gauhati High Court in this case was considering the case of an employee of the defunct airline Kingfisher airlines which had deducted tds of Rs 7.20 lacs and Rs 8.70 lacs for AY 2009-10 and AY 2011-12 respectively and the same having not been deposited by the employer, the department initiated recovery proceedings against the employee. The department while opposing the Writ petition interalia contended that the Appellant having not pleaded Kingfisher Airlines as a respondent, the petition should be rejected. It was also contended that the system does not allow the credit without the necessary deposit of the TDS by the employer. The court however relying on Gauhati High Court’s earlier decision in the case of Omprakash Gattani and the provisions of Section 205 which clearly provides that an assessee shall not be called upon to pay himself to the extent to which tax has been deduced from that income , allowed the Writ and directed the department to allow the credit for the TDS and start recovery proceedings if any against the Kingfisher airlines.

This judgement will be helpful in similar cases.

Ramesh Patodia
19-11-2021