TDS Deducted by Employer cannot be Recovered from deductee as per section 205 of Income Tax Act: Delhi HC [Read Order]

The Delhi High Court Tax Deducted at Source (TDS) deducted by the employer cannot be recovered from the deductee as per section 205 of the Income Tax Act, 1961.

Vishesh Khanna, the petitioner filed a Writ of Mandamus to directing Respondent No. 1 to quash the outstanding demand along with the accrued interest, for the Assessment Year 2012-2013 and Assessment Year 2013-2014, raised against the Petitioner, through the issuance of the Impugned Notices.

Further to direct the respondent to set aside the Impugned Intimation and return the refund amount sought by the Petitioner for the Assessment Year 2019-2020, along with statutory interest.

Mr Varun Nagrath, the counsel, who appeared on behalf of the petitioner/assessee, stated that he does not wish to press the same, as the petitioner/assessee has already been refunded the amount for Assessment Year (AY) 2019-20. 

Mr Aseem Chawla, senior standing counsel, who appeared on behalf of the respondent/revenue, cannot but accept that tax having been deducted at source by the employer cannot be recovered from the petitioner in view of the embargo placed by Section 205 of the Income Tax Act, 1961 [“Act”]. 

The issue is covered by the judgment of the coordinate bench rendered in Sanjay Sudan v. Assistant Commissioner of Income-tax.

A division bench of Justice Rajiv Shakdher and Justice Girish Kathpalia quashed the demand and consequentially, the show-cause notice collapsed. The writ petition is disposed of, in the aforesaid terms. 

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