2014 (5) TMI 1237 - HC - Income Tax

Default in deposit of TDS - On salary for the concerned years tax has been duly deducted but the same has not been deposited by the employer - HELD THAT - Since the deduction of TDS from the salaries of the petitioners is not disputed, we find no justification for the demands being shown as outstanding against the writ petitioners. We, accordingly, dispose of these three writ petitions. We additionally call upon the respondents to ensure that all demands with respect to TDS as currently reflected against the petitioners on the Income Tax Business Application portal are consequently deleted.

Summary

Issues:
1. Tax Deducted at Source (TDS) not deposited by the employer leading to demands against the petitioners.
2. Interpretation and application of the Office Memorandum (OM) of the Central Board of Direct Taxes (CBDT) dated 11 March 2016.
3. Justification for outstanding demands against the petitioners despite TDS deduction.
4. Disposal of writ petitions in line with Assessing Officer's orders in specific cases.
5. Deletion of demands reflected against the petitioners on the Income Tax Business Application portal.

Analysis:
1. The writ petitioners approached the Delhi High Court due to demands imposed on them despite TDS being deducted from their salaries in the relevant Assessment Years, with the default attributed to the employer's inaction.
2. Following the CBDT's OM of 11 March 2016, the respondents passed orders granting a stay of demand for the petitioners in specific cases (WP(C) 3545/2023 and 3547/2023) where TDS was deducted but not deposited by the employer. The orders highlighted the legality and validity of the non-deposit of demand by the employer, leading to a stay of demand without coercive action.
3. The Court noted the CBDT's OM addressing the issue of TDS deduction from petitioners' salaries, which was not disputed. Consequently, the Court found no justification for the outstanding demands against the petitioners, leading to the disposal of the writ petitions in line with the Assessing Officer's orders in the specific cases mentioned.
4. The Court directed the respondents to delete all demands related to TDS currently reflected against the petitioners on the Income Tax Business Application portal, emphasizing the resolution of the issue and relief for the petitioners in line with the CBDT's guidelines and the Assessing Officer's approach in specific cases.