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TMI Blog2015 (4) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... DS certificates on behalf of the hospital and the Trust? - Held that:- The consequences of failure to deduct or pay results in the assessee being declared as assessee in default. Therefore, the persons against whom proceedings may be initiated for failure to deduct or pay is the assessee, who may made payment without deducting TDS. In the instant case the assessee was acting as an employee of the Trust. The payment made by him was not in his individual capacity. It was on behalf of the Trust. The money paid is out of the Trust. The consequences of failure to deduct or pay the TDS tax should be visited on that Trust for denying the benefit under the Act. The proceedings initiated is not a criminal proceeding. Under these circumstances the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were fixed by the Appollo Group. All the financial matters were handled by the Trust including payment of provisional charges to the Doctors/Consultants. The remuneration was paid entirely by the Trust and the accounts were maintained by the Trust. During the course of TDS verification, it was noticed that the assessee has not deducted tax on certain amount payable as professional charges to the consultants/doctors. On the basis of the evidences found during the course of survey, it was concluded that the assessee was not deducting tax at source as per the provisions of the Income Tax Act, 1961 (hereinafter referred to as Act ). The Assessing Officer therefore ascertained the amount on which tax was not deducted and raised the demand in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and paid by the Trust. The same was the position with reference to the employees who were deputed to AHEL. Hence, it was submitted AHEL was not the employer for the period prior to 30th March 2006. The assessee has disbursed the payments. Such payments made by him is as an employee and the actual payer was the employer. He has signed TDS returns and TDS certificates in the capacity of an employee of the Trust. They then referred to the Sections 200, 201, 192(1A) and contended that the assessee was not liable to deduct TDS. At any rate they cannot proceed against him in his personal capacity. 4. After considering the aforesaid material, the Appellate Authority has held that the demand raised against the assessee personally is illegal. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(1) and 201(1)(a) of the Act cannot be initiated against the assessee who had submitted the TDS returns and in whose name TDS account number was allotted and who was issuing TDS certificates on behalf of the hospital and the Trust? 8. We have heard the learned counsel appearing for the parties. 9. Section 201(1) provides consequence of failure to deduct or pay. It provides, where any person, including principal officer of a company- who is required to deduct any sum in accordance with the provisions of the Act or referred to Sub Section (1A) of Section 192, being an employer, does not deduct, or, does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, he be deemed to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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