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TMI Blog1988 (7) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... s grievance of the assessee arises out of the following factual background. 2. The assessee before us is Delhi Development Authority through the Pay and Accounts Officer, Engineering Wing. The Pay and Accounts Officer was required to deduct tax from the salaries paid to the employees of DDA and pay the same into the Govt. Treasury as required under the law. The assessee had thereafter to file a return under section 206 of the Income-tax Act, 1961 showing salaries paid to the employees and the tax deducted thereon. On examination of such a return filed by the assessee the Income-tax Officer concerned found that the assessee had not deducted full tax due from two of the employees as under : ------------------------------------------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Assistant Commissioner was also informed that this undertaking given by the officer concerned was fulfilled by payment of the disputed amount on2-7-1984into the State Bank ofIndia, Indraprastha Estate. The learned Appellate Assistant Commissioner was also informed that Shri R. S. Jindal was given a rebate to the extent of Rs. 4320 on account of House Rent Allowance as he declared that he was paying monthly rent of Rs. 600. The learned Appellate Assistant Commissioner considered these submissions, but held the view that the statutory obligation cost upon the assessee had not been fulfilled and the explanation given was not satisfactory. For the reasons assigned by him in his order, he dismissed the appeal of the assessee holding the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere different and in each case the assessment of the employee had been completed and tax paid. He, therefore, fully supported the orders of the authorities below. 6. We have given careful consideration to the rival submissions. The Income-tax Act, 1961 provides for collection and recovery of tax under Chapter XVII of the Act. Section 190 provides for deduction at source and advance payment of tax. Section 191 makes a provision of direct payment of tax by the assessee in the case of income in respect of which provision is not made under this chapter for deducting income-tax at the time of payment. Thereafter the Legislature has provided a scheme for deduction of tax at source from salaries, interest on securities, dividends and other such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and the company of which he is the principal officer does not deduct or after deducting fails to pay the tax as required by or under this Act, be or it shall, without prejudice to any other consequences which be or it may incur, be deemed to be an assessee in default in respect of the tax. This is the provision that the Income-tax Officer has invoked to hold the assessee on the above facts and circumstances of the case as an assessee in default. The scheme of deduction of tax and its payment is so self-contained that the Legislature has provided for penal action to be taken in case of failure against the persons responsible for deduction and payment of tax. At the same time in order to protect the persons on whose behalf the tax is deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are duly accounted for by the persons responsible for payment of salaries. We, however, find that the assessee knowingly flouted these provisions in so far as the failure of the assessee to deduct tax of Rs. 3023 in the case of Shri R. A. Khemani is concerned because the explanation of the assessee is that the assessee did not deduct the tax because Shri Khemani gave an undertaking that the tax will be paid by him. In other words, the assessee deliberately joined hands with Shri Khemani to see that the legislature mandate of deduction of tax and its payment provided in the statute is flouted. There is no provision under the Act which to justify this because it is not an omission or failure inadvertently committed, but for a decision taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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