Case Law Details
Anirudh Bhuwalka Vs DCIT (ITAT Kolkata)
Introduction: This article discusses the case of Anirudh Bhuwalka vs. DCIT (ITAT Kolkata), wherein the Income Tax Appellate Tribunal (ITAT) upheld the decision of the CIT(A) to deny TDS benefits to the assessee due to non-deposition of TDS in the income. The case involves a dispute over TDS credit claimed by the assessee for the assessment year 2019-20.
Analysis: The case revolves around the contention that the tax deducted at source (TDS) from the salary income of the assessee was not deposited by the employer with the government. As a result, the credit for TDS claimed by the assessee was denied by the authorities. The assessee argued that he should be entitled to the TDS credit, regardless of the employer’s failure to deposit the deducted tax. The CIT(A) directed the Assessing Officer (AO) to examine the claims of the appellant and grant necessary relief. However, the Tribunal, in a previous decision, dismissed the appeal on merits. Subsequently, the High Court restored the matter to the Tribunal for fresh consideration.
The Tribunal later discovered that the assessee, who was the MD & CEO of the employer company, had not deducted TDS from his own salary. The company was facing financial stress and had not deposited the TDS with the government. The Tribunal observed that the assessee could not claim TDS credit for tax that was never deducted and deposited by the employer, especially when the assessee himself was responsible for the company’s financial affairs.
Conclusion: In conclusion, the ITAT upheld the non-granting of TDS benefits to Anirudh Bhuwalka due to the failure of his employer to deposit the TDS amount. The Tribunal found that the assessee, being the MD & CEO of the company, was responsible for ensuring TDS compliance and could not take advantage of his own default. The appeals of the assessee were dismissed by the Tribunal. This case highlights the importance of complying with TDS regulations and the implications it can have on claiming tax benefits.
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