Recovery proceedings against deductee unjustified even if deductor failed to deposit tax & is undergoing CIRP

BDR Finvest Pvt Ltd Vs DCIT (Delhi High Court)

Delhi High Court held that initiation of recovery proceedings against deductee as deductor failed to deposit tax with Government and deductor is undergoing CIRP is unjustified and unsustainable in law.

Facts-

Via the rectification application, the petitioner sought to stake a claim with respect to the tax which had been deducted at source on the interest paid by its borrower, namely, Ninex D

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