Case Law Details
Vishal Pachisia Vs ITO (ITAT Kolkata)
ITAT Kolkata held that once the TDS is deducted then the liability resulting from the non-deposit of TDS by the deductor cannot be fasten on the deductee. Hence, denial of TDS credit to deductee unjustified.
Facts- The assessee is a salaried employee employed with M/s. Falcon Tyres Ltd. at its Kolkata office and during the year received a salary of Rs. 17,40,264/-. The employer deducted the TDS from the salaries of the assessee of Rs. 3,96,700/-. However, the same was not deposited in the Government treasury. The assessee filed the return of income and claimed the credit for TDS deducted at the source of Rs. 4,10,292/-. However, the AO, CPC allowed the credit to the tune of Rs. 13,592/- in respect of TDS deducted at source thereby denying the credit of Rs. 3,96,700/- to the assessee on the ground that the same was not deposited by the employer M/s. Falcon Tyres Ltd. in the Government treasury.
CIT(A) upheld the order passed by the AO, CPC. Being aggrieved, the present appeal is filed.
Conclusion- Held that the issue of non-deposit of TDS by the deductor has been allowed in favour of the assessee by holding that once the TDS is deducted then the liability resulting from the non-deposit of TDS by the deductor cannot be fasten on the deductee.
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Author Bio
CAN WE USE SAME LOGIC AND ARGUMENT FOR GST REGIME WHERE BUYER DENINED SET OFF BECAUSE OF SELLER HAD NOT DEOSITED GST OR NOT REFLECTED IN GSTR 2B/2A