Case Law Details
Incredible Unique Buildcon Private Limited Vs ITO (Delhi High Court)
Delhi High Court held that section 205 of the Income Tax Act puts a bar on direct demand against the assessee to the extent where TDS is deducted from his income. It is irrelevant whether TDS is deposited or not and whether Form No. 16A is issued or not.
Facts- The revenue, respondent to the originally filed writ petition seeks review of the order dated 31.05.2023 of this court whereby the writ petition was finally allowed, thereby directing the respondent/revenue to refund a sum of Rs. 11,39,870/- to the writ petitioner. Being hit by a delay of about 45 days, the review applicant has also filed an application u/s. 151 CPC for condonation of delay.
On notice, the non-applicant writ petitioner entered appearance through counsel, who in the interest of expeditious disposal opted not to oppose the delay condonation application, which explains the delay in filing the review application broadly on the ground of administrative rigmaroles.
Conclusion- There is no dispute that in the present case, it was mandatory duty of Clutch Auto Ltd to deduct tax at source qua the payments made to the non-applicant/assessee. Also not in dispute is the legal proposition that vide Section 205 of the Income Tax Act, where the tax is deductable at source, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from his income.
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