Venkatachalam Thangavelu Vs ITO (Delhi High Court)
The writ petition before the Delhi High Court concerned denial of credit of Tax Deducted at Source (TDS) to an employee on the ground that the employer had failed to deposit the deducted tax with the Income Tax Department.
The petitioner challenged an intimation dated 07.06.2013 issued under Section 143(1) of the Income Tax Act, 1961, by which a demand of ₹12,28,508 was raised. This demand arose because credit of TDS amounting to ₹10,34,982, deducted from the petitioner’s salary by Kingfisher Airlines, was not granted on the ground that the employer had not deposited the deducted tax. The petitioner contended that he could not be denied TDS credit for a default attributable solely to the employer.
The petitioner relied on a judgment of the same Court dated 01.10.2024 in Satwant Singh Sanghera v. Assistant Commissioner of Income Tax & Anr., which was stated to squarely cover the issue. It was further submitted that the Department had already recovered a substantial portion of the impugned demand by adjusting it against refunds due to the petitioner. On this basis, the petitioner sought not only quashing of the intimation under Section 143(1) but also refund of the amount already recovered.
