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2021 (3) TMI 324 - AT - Income TaxCredit of TDS deducted on account of capital gains by the Koutons Group in case of assessee but not deposited with the state exchequer - assessee, being a non-Resident Indian holding a British passport, sold 25% shareholding in Koutons Group, a private limited company - CIT (A) gave part relief to the assessee to the extent that the assessee cannot be treated as “assessee in default” in respect of tax demand but has not given the credit of TDS to the assessee on the ground that TDS amount has not been deposited in the state exchequer by Koutons Group - whether assessee whose TDS on account of capital gains was deducted by M/s. Koutons Group but not deposited with the state exchequer, is entitled to credit of TDS? - HELD THAT:- Revenue Department itself has accepted that TDS of assessee was deducted by the Koutons Group though not deposited with the state exchequer, the assessee cannot be treated as “assessee in default” and as such cannot be denied the credit thereof with consequential refund. When deductor of TDS, Koutons Group in this case, made a deduction under statutory obligation on behalf of the Revenue as its agent, in case, there is any omission on the part of the deductor in depositing the tax deducted at source, it is liable to be prosecuted u/s 409 of the Indian Penal Code being an agent of Revenue Department. Revenue Department has not taken any action under the Act or under the Indian Penal Code against the Koutons Group rather assessee had filed a complaint with the concerned police station, available at pages 128 to 133 of the paper book, against Koutons Group and its Directors for illegal misappropriation of an amount of ₹ 2,04,96,695/- and this intimation was given to the Revenue Department. Strangely enough, Revenue Department has not moved the law into motion even after filing the complaint by the assessee. TDS to the tune of ₹ 2,04,96,695 deducted by the Koutons Group on account of capital gains earned by the assessee and amount of ₹ 50,00,000 deposited by the assessee with the Revenue Department minus the capital gains depicted in the table given in the preceding para is liable to be refunded along with statutory interest within two months from the date of this order. - Decided in favour of assessee.
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