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2023 (4) TMI 488 - ITAT DELHIReversal of TDS by the employer on salary foregone by the employee (after termination) as per the settlement agreement - Appellant (employee) seeking release of TDS amount - obligation of the employer to deduct TDS on salary foregone after accrual of salary but not paid - HELD THAT:- The Bench is of considered view that the foregone salary may after its accrual be chargeable to tax in the hands of appellant, but the appellant cannot claim that his employer should have deducted tax on the basis of accrual. The grounds raised have no substance. Maintainability of appeal in pursuance of order of Hon’ble High Court - Liability of employer to deductTDS u/s 192 - HELD THAT:- As observed this appeal is maintainable by an ‘assessee’, however, the aforesaid discussion establish that appellant is neither ‘assessee’ nor ‘assessee in default’. Therefore, the appeal preferred by him, against the order dated 07.01.2021, mentioned in form 36 as “review order u./s 263 of the Income Tax Act, 1961” is not maintainable. Even otherwise on merits it can be observed that section 192 of the Act provides deduction of tax ‘at the time of payment’. However, in the case in hand admittedly there was no payment of the salary etc, which was foregone as per terms of settlement in the mediation proceedings. Consequently, the appeal is dismissed.
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