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TMI Blog2018 (9) TMI 1635X X X X Extracts X X X X X X X X Extracts X X X X ..... h of this Court in case of Sumit Devendra Rajani (2014 (8) TMI 418 - GUJARAT HIGH COURT) examined the statutory provisions and in particular Section 205 of the Income-tax Act, 1961. Facts in both case are very similar. These petitions we hold that the Department cannot deny the benefit of tax deducted at source by the employer of the petitioner during the relevant financial years. Credit of such tax would be given to the petitioner for the respective years. If there has been any recovery or adjustment out of the refunds of the later years, the same shall be returned to the petitioner with statutory interest. - R/SPECIAL CIVIL APPLICATION NO. 12965 of 2018 With R/SPECIAL CIVIL APPLICATION NO. 12966 of 2018 - - - Dated:- 24-9-2018 - MR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments on record. Basic facts are not in dispute. In case of the petitioner the employer for the assessment year 2012-13 while paying salary had deducted tax at source to the tune of ₹ 2,68,498/but had not deposited such tax with the Government revenue. The short question is under such circumstances can the Department seek to recover such amount from the petitioner or whether the petitioner is correct in contending that he had already suffered the deduction of tax, the mere fact that the deductee did not deposit such tax with the Government revenue could not permit the Incometax Department to recover such amount from the petitioner. 4. The issue is no longer res integra. T he Division Bench of this Court in case of Sumit Devendr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d demand notice dated 6.1.2012 (Annexure D) is quashed and set aside. However, it is clarified and observed that if the department is of the opinion deductor has not deposited the said amount of tax deducted at source, it will always been open for the department to recover the same from the deductor. Rule is made absolutely to the aforesaid extent. In the facts and circumstances of the case, there shall be no order as to costs. 5. Facts in both case are very similar. Under the circumstances, by allowing these petitions we hold that the Department cannot deny the benefit of tax deducted at source by the employer of the petitioner during the relevant financial years. Credit of such tax would be given to the petitioner for the respective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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