Bar u/s 205 comes into force only after it is proved that TDS was deducted at source – ITAT Mumbai

ACIT, Mumbai Vs M/s Bajaj Auto Limited (ITAT Mumbai)- From the language of section 205 of the Act, it is clear that the bar operates as soon as it is established that the tax has been deducted at source and it is wholly irrelevant as to whether the tax deducted at source is paid to the credit of the Central Government of not and whether the TDS certificate in Form No. 16 has been issued or not. Also the mere fact that the employer may not issue the TDS certificate to the employee does not mean that the liability of the employer ceases. The liability to pay income-tax if deducted at source is upon the employer.

IN THE INCOME TAX APPELLATE TRIBUNAL
“B” Bench, Mumbai

Before Shri R.V. Easwar, President
and Shri T.R. Sood, Accountant Member

ITA Nos. 3638, 3639, 3640, 3641 & 3642/Mum/2010

(Assessment Years: 1998- 99, 1990- 91, 1999- 2000, 2001- 02 & 2003- 03)

ACIT – LTU Vs. M/s. Bajaj Auto Limited

ORDER

Per T.R. Sood, A.M

These appeals filed by the Revenue are directed against separate orders of the CIT(A) XXIV, Mumbai dated 11.02.2010 in respective assessment years.

2. Revenue has raised the  following common ground in all the assessment years:-