{"id":64456,"date":"2026-09-04T17:48:09","date_gmt":"2026-09-04T12:18:09","guid":{"rendered":"https:\/\/itatonline.org\/digest\/ito-v-gayatri-snehal-rao-2026-309-taxman-330-sc-editorial-gayatri-snehal-rao-v-ito-2024-168-taxmann-com-466-guj-hc\/"},"modified":"2026-09-04T17:48:09","modified_gmt":"2026-09-04T12:18:09","slug":"ito-v-gayatri-snehal-rao-2026-309-taxman-330-sc-editorial-gayatri-snehal-rao-v-ito-2024-168-taxmann-com-466-guj-hc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/ito-v-gayatri-snehal-rao-2026-309-taxman-330-sc-editorial-gayatri-snehal-rao-v-ito-2024-168-taxmann-com-466-guj-hc\/","title":{"rendered":"ITO v. Gayatri Snehal Rao [2026] 309 Taxman 330 (SC) Editorial: Gayatri Snehal Rao v. ITO [2024] 168 taxmann.com 466 (Guj) (HC)"},"content":{"rendered":"<p>The assessee, a former employee, was denied credit for TDS deducted from his salary because the employer failed to deposit the deducted tax with the Government. Consequently, a demand was raised through an intimation under section 143(1). The High Court held that, in view of section 205 of the Income-tax Act, CBDT Instruction No. 275 dated 01.06.2015 and Office Memorandum dated 11.03.2016, no demand could be raised against the assessee for the deductor&#8217;s failure to deposit TDS. The Court quashed the intimation and consequential demand, and directed the Revenue to modify its software and ensure strict compliance with the Act and CBDT instructions so that deductees are not subjected to demands arising from TDS mismatches caused by deductors&#8217; defaults. Against the said decision, the Revenue filed SLP. However, the Supreme Court dismissed the Special Leave Petition, both on the ground of delay and on merits, against the Gujarat High Court&#8217;s order holding that no demand can be raised against an assessee where TDS has been deducted from salary but not deposited by the employer. The issue had already been addressed in the connected case of <em>ITO v. Shobhan Shantilal Doshi, [2026] 309 Taxman 172 (SC).<\/em>\u00a0 SLP dismissed on account of delay by 360 days and also on merits.\u00a0\u00a0 (AY. 2020-21 and 2021-22)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 205: Deduction of tax at source-Bar against direct demand on assessee-Non-deposit of TDS-Revenue cannot recover the same tax from the assessee merely because the employer failed to deposit the TDS with the Government-SLP dismissed on account of  delay by 360 days and also on merits.  [S.143(1), 199, Art. 136]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64456","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gLC","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64456"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64456\/revisions"}],"predecessor-version":[{"id":64457,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64456\/revisions\/64457"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}