TDS credit need to be given even if TDS is not deposited by the deductor

[Sandeep Rawat]

TDS credit need to be given even if TDS is not deposited by the deductor

High Court of Gujarat in case of Devarsh Pravinbhai Patel v/s Asst Commissioner Of Income Tax [ 2018 (9) TMI 1635 - GUJARAT HIGH COURT ]

Where employer deducted tax at source on salary payments made to assessee however did not deposit such tax with the Government revenue, Department could not deny the benefit of tax deducted at source by the employer of the assessee and Credit of such tax would be given to the assessee for the respective years

Assessee was an individual employed as a pilot. During the relevant period the employer deducted tax at source on salary payments made to assessee. However the employer did not deposit such tax with the Government revenue. In this regard the short question under consideration was can the Department seek to recover such amount from the assessee or whether the assessee was correct in contending that he had already suffered the deduction of tax, the mere fact that the deductee did not deposit such tax with the Government revenue could not permit the Income Tax Department to recover such amount from assessee.

It was held that during the relevant financial years. Credit of such tax would be given to the assessee for the respective years. If there has been any recovery or adjustment out of the refunds of the later years, the same shall be returned to the assessee with statutory interest.

Decision: In assessee’s favour.

IN THE GUJARAT HIGH COURT

Devarsh Pravinbhai Patel v/s Asst Commissioner Of Income Tax [ 2018 (9) TMI 1635 - GUJARAT HIGH COURT ]

 

For further clarification and professional assistance, feel free to contact at sandeeprawatca@gmail.com

(Mr. Sandeep Rawat has vast experience & knowledge in dealing with Direct and Indirect Taxation.  He can be reached at  sandeeprawatca@gmail.com)