Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 586 - ITAT KOLKATASet-off of the TDS against tax demand which was never deposited by the assessee acting as employer of himself - HELD THAT:- It is pertinent to note here that the assessee being the managing director of the company himself was liable to file and verify the income tax return on behalf of the company as per the provisions of section 140(c) of the Income Tax Act. Even if an action is brought against the company for non-deduction of TDS even then the assessee being the principal officer of the company is liable to be treated as assessee in default under the provisions of section 201(1) and 201(1a) read with section 204 of the Income Tax Act and even as per the provisions of section 271C, it would be assessee being the managing director and the principal officer of the company who would be liable to be prosecuted u/s 271C of the Act for default in deduction of TDS or non-deposit of TDS. Therefore, even otherwise, if the taxes to be recovered from the company, it will be the assessee who will be liable on behalf of the company to pay the taxes and interest thereupon including liable to be tried under Penal provisions for non-deduction/non-deposit of tax on his own salary. I Assessee being the managing director and chief executive officer of the company himself is the principal officer/person responsible for all acts of defaults in non-deduction/non-deposit of TDS and under such circumstances, he cannot be allowed to take benefit of his own wrong. Assessee has made another attempt to harp upon a wrongful claim of the assessee by stating that the employer of the assessee company namely AMW Motors was admitted into Corporate Insolvency Resolution Process before the National Company Law Tribunal, Ahmedabad and that affairs of the assessee company was managed by resolution professional appointed by NCLT. We find that the above contention of the ld. counsel is also misleading and does not depict true picture of the events. Though the company was admitted into CIRP by the Adjudicating Authority on 01.09.2020 and Interim Resolution Professional was appointed on 01.09.2020, whereas, the financial years involved in the present appeals are F.Y 2017-18 relevant to A.Y 2018-19 and F.Y 201819 relevant to A.Y 2019-20. Therefore, there is no merit in the above contention raised by assessee. The assessee is not entitled to any claim of set-off of TDS, which was never deposited by the company, the assessee being the principal officer and overall administrative head of the company, out of his own act and conduct. Decided against assessee.
|