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2019 (2) TMI 243 - HC - Income TaxTDS credit not granted - Mismatch of TDS claimed by the petitioner and recognized by the department - purchasers of the immovable property from the petitioner, had not deposited the sum of ₹ 9 lakhs deducted from the petitioner while making payment of the sale consideration - recovery proceedings - claim of refund - Held that:- The department does not contend that the petitioner did not suffer deduction of tax at source at the hands of payer, but contends that the same has not been deposited with the Government revenue. As provided under Section 205 of the Act and as elaborated by this Court in case of Yashpal Sahni [2007 (7) TMI 7 - HIGH COURT , BOMBAY) under such circumstances the petitioner cannot be asked to pay the same again. It is always open for the department and infact the Act contains sufficient provisions, to make coercive recovery of such unpaid tax from the payer whose primary responsibility is to deposit the same with the Government revenue scrupulously and promptly. If the payer after deducting the tax fails to deposit it in the Government revenue, measures can always be initiated against such payers. Revenue is correct in pointing out that for long after issuing notice under Section 266(3) of the Act, petitioner has not brought this fact to the notice of the respondent No.2 which led the respondent No.2 to make recoveries from the bank account of the petitioner. In that view of the matter, at best petitioner may not be entitled to claim interest on the amount to be refunded. Petition is disposed of as taking note of the fact that the respondents have lifted the bank account attachment, no need to quash the attachment. Two impugned notices dated 5th February, 2018 as at annexure “B” to the petition and 10th September, 2018 as at annexure “J” to the Petition for recovery are quashed. The respondents shall refund a sum of ₹ 3,67,600/to the petitioner within four weeks from today. If so done, there shall be no interest liability, failing which beyond such period the respondents shall pay simple interest at the rate of 8% p.a. on such amount till actual payment.
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