Vishesh Khanna Vs DCIT & Ors. (Delhi High Court)
Delhi High Court Rules TDS Deducted but Not Paid by Employer Cannot be Recovered from Deductee in Vishesh Khanna Vs. DCIT & Ors. Case
Introduction: The Delhi High Court recently addressed a writ petition filed by Vishesh Khanna, challenging the outstanding demand raised against him for Assessment Year (AY) 2012-2013 and 2013-2014, along with other related issues. The central contention revolved around the recovery of Tax Deducted at Source (TDS) by the employer, which had not been paid.
Prayers Made by the Petitioner: The petitioner sought several reliefs in the writ petition, including quashing the outstanding demand for AYs 2012-2013 and 2013-2014, setting aside an intimation for AY 2019-2020, and restraining the respondents from proceeding with a show-cause notice dated 04.02.2020.
Court Proceedings:
- The petitioner decided not to press the relief sought in prayer Clause (B), concerning the intimation dated 23.09.2019 for AY 2019-2020, as the petitioner had already received the refund for that assessment year.
- The remaining prayers (A and C) were considered by the court. Mr. Aseem Chawla, learned senior standing counsel for the revenue, conceded that tax deducted at source by the employer could not be recovered from the petitioner, citing the restriction imposed by Section 205 of the Income Tax Act, 1961.
- The court referred to the judgment of a coordinate bench in the case of Sanjay Sudan v. Assistant Commissioner of Income-tax [223] 148 com 329 (Delhi), which had already addressed the issue of recovery of TDS from the deductee.
Court’s Decision:
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