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2014 (9) TMI 425 - HC - Income TaxLiability to pay tax by assessee - provision of section 205 - Failure of non-issuance of TDS certificates by the tenant - Whether Section 205 of the Income Tax Act would apply and is the Appellant liable to pay tax to the extent to which tax has been deducted – Held that:- Tax was deducted at source by the tenant Union Motors Services Limited and they have issued some Certificates which have been given credit to by the Department - the mandate is on the tenant to deduct tax at source and remit the amount to the Government and also issue certificate to the assessee – relying upon Yashpal Sahni vs Rekha Hajarnavis, Asst. CIT (Bom.) [2007 (7) TMI 7 - HIGH COURT , BOMBAY] - Once it is established that the tax has been deducted from the salary of the employee, the bar u/s 205 of the Act comes into operation and it is immaterial as to whether the tax deducted at source has been paid to the Central Government or not, because elaborate provisions are made under the Act for recovery of tax deducted at source from the person who has deducted such tax - the bar u/s 205 of the Income Tax Act prevents the department from demanding the tax deducted at source from the assesee who has suffered a deduction - the liability rests with the Official Liquidator – Decided in favour of assessee.
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