Malay Kar Vs Union of India & Ors. (Orissa High Court)
In the case of Malay Kar Vs Union of India & Ors., the petitioner, a salaried employee, challenged the denial of tax credit for ₹2,68,733 deducted at source by his employer, M/s Corporate Ispat Alloys Ltd., for the as-sessment year 2013-14. The petitioner had filed his tax return electronically, but discrepan-cies arose between the actual tax deducted (₹5,90,112) and the amount reflected in Form 26AS (₹3,21,379). Despite repeated communications to his employer and the income tax authorities, the issue remained unresolved, resulting in an intimation under Section 143(1) of the Income Tax Act, 1961, raising a demand of ₹3,24,150, including interest under Sections 234B and 234C. The petitioner argued that the fault lay with the employer for failing to deposit the full TDS with the Central Government, which unfairly penalized him.
The court acknowledged the systemic issue of TDS mismatches caused by errors or non-compliance by deductors, which often leave taxpayers in a difficult position. It highlighted the responsibility of employers under Section 200 of the Income Tax Act to deposit deducted tax-es promptly and noted that such administrative lapses are widespread. The court directed the concerned authorities to address the petitioner’s grievance expeditiously, emphasizing the need for fair resolution mechanisms in cases of TDS mismatches.
