ITAT Upholds Non Granting of TDS Benefits on ground of Non Deposition of TDS in Income of Assessee [Read Order]

The Kolkata bench of the Income Tax Appellate Tribunal (ITAT) upheld the non granting of Tax Deducted at Source (TDS) benefits on the ground of nondeposition of TDS in the income of the assessee. 

Anirudh Bhuwalka, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the nongranting of TDS by the assessing officer to the assessee. 

S. Jhajharia, the counsel for the assessee contended that if the employer or payer of the assessee did not deposit the tax deducted at source out of salary payable to the assessee, the assessee cannot be burdened with the tax liability and that the assessee may be given the credit of the TDS deducted at source by his employer and after setting off of the tax demand, the balance amount be refunded to the assessee. 

It was further submitted that the assessee was eligible to get the benefits of TDS which was not granted by the assessing officer. 

Ranu Biswas, the counsel for the revenue relied on the decisions of the lower authorities and contended that the denial of TDS credit which according to the assessee was deducted from his salary income but was not appearing in Form 26 AS and as a result demand along with interest under section 234B and 234C of the Income Tax Act,1961 had been levied upon him. 

The bench observed that the assessee being the managing director of the company himself was liable to file and verify the income tax return on behalf of the company as per the provisions of section 140(c) of the Income Tax Act. 

It was also submitted that even if an action was brought against the company for non-deduction of TDS even then the assessee being the principal officer of the company was liable to be treated as assessee in default under the provisions of section 201(1) and 201(1a) read with section 204 of the Income Tax Act. 

A single-member bench comprising Sanjay Garg (Judicial) held that the assessee was not entitled to any claim of set-off of TDS, which was never deposited by the company and there was no merit in the appeal and dismissed the appeal filed by the assessee. 

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