2021 (1) TMI 153

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..... e assessee is a Law firm by profession and derived income from business and profession and income from other sources. During the course of assessments for these two years, the Assessing Officer found that in the balance sheet submitted by the assessee for the relevant years, the assessee had shown statutory liability on account of TDS payable and submitted that they have been following the cash system of accounting. Assessing Officer disallowed the same on the ground that TDS part of the amount was not paid before the end of the financial year and therefore, he added it back to the income of the assessee. 3. In appeal, ld. CIT(A) confirmed the same. 4. The assessee is, therefore, before us in these two appeals stating that the assessee pa .....

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..... actually received as income and does not show the professional receipts as income which had accrued to him despite the fact that TDS was deducted by the concerned party while crediting the account of the assessee and depositing into government account as per 26AS of the assessee and therefore, inasmuch as the Assessing Officer has allowed the entire expenditure, which was incurred/paid during the year while disallowing only such amount of TDS which was not paid during the relevant financial year, his action is justified. 7. We have gone through the record in the light of the submissions made on either side. On a careful consideration of the orders of the authorities below, we find that substantially the very same question had arisen for th .....

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..... e tax have been deducted. Further tax deduction at source is a liability cast upon the assessee to deduct the sum from the recipient of such income. In fact the moment assessee deducts the tax at source from the sums paid to the other person it becomes the liability of the assessee who can be held to be an assessee in default for the above sum as well as liable to pay interest and penalty also. Thus, the amount of tax deducted at source is always considered as the sum paid by the assessee on behalf of the recipient of the income. Therefore, it cannot be said that the above sum has not been paid by the assessee even while following the cash system of accounting. Further the action of the learned CIT - A in invoking the provisions of section .....

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