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2011 (4) TMI 880 - AT - Income TaxNon deduction of TDS - perquisite/amenities provided to its employees by the assessee - levying demand u/s 201(1) and interest u/s 201(1A) - Held that:- It is the bounden duty of the assessee to obey the order of the Madras High Court where the Association of Scientific and Technical Officers of ONGC of India filed a writ petition dated 8.3.2002 with regard to deduction of tax on the perquisites/amenities given to the employees - the assessee-corporation was one of the Respondents before the Madras High Court and therefore, the interim stay granted by the Madras High Court is binding on the assessee, thus in view of the interim stay granted by assessee was not expected to deduct any tax during period of operation of the stay, i.e. from 8.3.2002 to 30.4.2003. So, during that period, assessee cannot be treated as an assessee-in defaults Duty on the assessee to deduct tax u/s 192 for the financial year 2002-03, after the interim stay was vacated by the Madras High Court on 30.4.2003 - the provisions of s. 192(1) do not make it obligatory for the assessee to deduct in the subsequent assessment year - Once the income of the employees under the head 'salary' was estimated honestly and fairly, merely because there was short deduction of tax, the provisions of s.201 are not attracted - the employer cannot be made liable for the consequences set out in sec. 201 on account of the retrospective amendment to sec. 17(2). As decided in CIT & ANR. VERSUS 1. M/S. LARSEN & TOUBRO LTD. 2. ASEA BROWN BOVERI LTD.[2009 (1) TMI 11 - SUPREME COURT] employer is not under any statutory obligation under the income tax Act, 1961 or the Rules, to collect evidence to show that the employee had actually utilized the amount paid towards leave travel concession or conveyance allowance u/s 10(5). Nor is there any circular of the CBDT requiring the employer u/s 192 to collect and examine the evidence supporting the declaration submitted by the employee. Since in the instant case, the employer has acted on the basis of declarations given by the employees, therefore, there was no obligation on the part of the employer to deduct the tax at sources - Decided in the favour of assessee
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