Case Law Details
Walvekar Brothers & Co. Vs ITO (ITAT Pune)
Hon’ble High Court has held that once it is established that tax has been deducted at source, the bar in section 205 of the Act comes into operation and it is immaterial as to whether tax deducted at source has been paid to Central Government or not because provisions are made under the Act for recovery of tax deducted at source from the person who has deducted such tax. Similarly, the Hon’ble Gauhati High Court in the case of Omprakash Gattani Vs. ACIT (2000) 242 ITR 638 has held that
“Thus complete machinery is provided under the Act for recovery of tax deducted at source the person who has deducted such a at source and the revenue is barred from recovering the TDS amount from from whose income, tad has been deducted at source Therefore the fact that the revenue is unable to recover the tax deducted at source from the person who has deducted such tax would not entitle the revenue to recover the said amount once again from the employee assessee, in view of the specific bar contained in section 205 of the Act.”
The ld. CIT(A) observed that tax was deducted from the assessee at source by Cromex Liquors Pvt. Ltd. Since M/s. Cromex Liquors Pvt. Ltd., did not deposit the amount in the Government account, the ld. CIT(A) ordered that the refund amount which was due to the assessee of Rs. 7,88,380/- should not be issued and the appeal was partly allowed.
We have examined the facts of the case and the detailed perusal of the records demonstrates the fact that admittedly tax was deducted at source by M/s. Cromex Liquors Pvt. Ltd. to deposit that amount in the government account, which they failed to do so. The Revenue has sufficient machinery to recover such amount of TDS deducted from the defaulting assessee but this is not the right way for the revenue to collect the tax again or debar genuine refund to the assessee who has already suffered taxation at source. Considering the judicial precedents, we set aside the order of the ld. CIT(A) and allow the appeal of the assessee.
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