Yatish Saxena Vs ACIT (Delhi High Court)
Summary: The Delhi High Court allowed the writ petition filed by Yatish Saxena and quashed demands raised for Assessment Years 2009-10, 2010-11, 2011-12 and 2012-13 to the extent they arose from non-grant of credit for Tax Deducted at Source (TDS) deducted by Kingfisher Airlines, the petitioner’s erstwhile employer.
The petitioner contended that demands of Rs. 4,52,188/- for AY 2009-10, Rs. 2,04,369/- for AY 2010-11, Rs. 49,48,730/- for AY 2011-12 and Rs. 26,29,922/- for AY 2012-13, including interest, had been raised through intimations under Sections 143(1) and 154 of the Income Tax Act, 1961. The demands arose because credit for TDS deducted by Kingfisher Airlines from the petitioner’s salary was not granted. The TDS amounts involved were Rs. 1,08,367/- for AY 2009-10, Rs. 10,88,879/- for AY 2010-11, Rs. 13,57,302/- for AY 2011-12 and Rs. 7,14,967/- for AY 2012-13.
The petitioner submitted that the issue was squarely covered by the Delhi High Court’s judgment dated 01.10.2024 in Satwant Singh Sanghera v. The Assistant Commissioner of Income Tax & Anr. The Revenue’s counsel was not in a position to dispute the legal position stated by the petitioner.
On merits, the Court observed that the respondent could perhaps have been justified in disallowing the TDS collected by Kingfisher Airlines because the deductor had not deposited the amount. However, the petitioner could not be blamed for the deductor’s failure and could not consequently be deprived of his legitimate right, in accordance with the principle laid down in Satwant Singh Sanghera.
