TMI Blog1982 (7) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... him, the Income-tax Officer, Salaries Circle (TDS), has no jurisdiction under section 201 of the Act to demand further tax from, the employer in respect of the tax short deducted relating to such employee ? " The material facts giving rise to this reference briefly are as follows : In compliance with the provisions of section 206 of the Act, the Divisional Manager, New India Insurance Co., Ltd., Bhopal, filed for the assessment year 1977-78, the annual return of salary income in respect of its employees showing the amount of tax deductible under s. 192 of the Act. The ITO, Salaries Circle (TDS) examined the said return and found that the tax deductible under s. 192 of the Act was not properly deducted by the assessee in respect of some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal upheld the order passed by the Commissioner (Appeals) and dismissed the appeal. Hence, at the instance of the Department, the aforesaid question of law has been referred to this court for its opinion. In CIT v. Manager, M. P. State Co-operative Development Bank Ltd. [1982] 137 ITR 230 (MP), we had occasion to consider the question as to whether the Tribunal was right in law in holding that where a regular assessment of an employee had been completed and the amount of tax fully paid by him, the ITO, Salaries Circle (TDS) had no jurisdiction under s. 201 of the Act, to demand further tax from the employee in respect of the tax short deducted relating to such employees. In this connection it was observed as follows (p. 231) : " Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shows, the regular assessment of the employees had been completed and the amount of tax was fully paid by them. The ITO, Salaries Circle (TDS), could not, therefore, demand farther tax from the employer in respect of the income of the employees, which was the salary of the employees chargeable to tax, when the same had been fully paid. " In view of our aforesaid decision, it must be held that the Tribunal was right in law in holding that where a regular assessment of an employee had been completed and the amount of tax fully paid by him, the ITO, Salary Circle (TDS), had no jurisdiction under s. 201 of the Act to demand further tax from the employer in respect of the tax short deducted relating to such employee. In our opinion, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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