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TMI Blog2022 (10) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 20.02.2019 passed by ACIT/DCIT, CPC, Bengaluru/ Central Circle-17, New Delhi (hereinafter referred to as the Assessing Officer or in short 'AO'). 2. The facts of the case are that the appellant filed his return of income for the A.Y. 2016-17 on 30/03/2018. That in the said return of income, total income of INR 46,11,620 was declared on which tax liability of INR 12,44,961 was computed. Against the same, the assessee had claimed credit of TDS of INR 12,74,469. Hence, tax refund of INR 29,508 was claimed in the return of income. That in the intimation order dated 20/02/2019 issued u/s 143(1) of the Income-tax Act ("the Act") by the Central Processing Center available at paper book page 3-5, tax demand of INR 18,95,878 was raised against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue harassment, specially to salary persons of EIEL and contactors, who might be facing recovery proceedings for demand and non-issuance of refunds. This case is not covered, under case-laws relied, by the appellant and differentiable in. view of following discussion: 5.4.1 The appellant was posted at designation of Sr. VP (Finance) in EIEL Being at post of Sr. VP (Finance), the appellant was among one of persons of top management of EIEL, who were responsible for financial transactions, decisions and financial system of EIEL Including deduction of TDS and deposition of TDS to the Govt's A/c well within time. The appellant was always and fully aware of fact that EIEL is not depositing deducted TDS to Govt A/c. But the appellant in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to provide documentary evidence that TDS deduction was bonafide. The appellant has produced salary slips which has figures of TDS deducted, chart of salary break up, bank statements, chart of TDS & PF deducted. But no Form-16/TDS Certificate issued by employer has been produced. 5.5 In view of above discussion, it is observed that the appellant was at post of Sr. Vice President (Finance) in EIEL. The appellant was among one of persons who were in totality responsible for financial system and financial transactions of EIEL, including deduction of TDS and deposition of TDS to Govt.'s A/c. The EIEL had deducted TDS of employees from top to lower management, contractors etc. which was not deposited by EIEL to the Govt.'s A/c. Such act wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mployer EIEL providing the detail of salary and deducting TDS. It was submitted the Ld. CIT(A) erred in observing that as Form 16 was not issued so TDS credit cannot be given. It was submitted that Ld. CIT(A) failed to consider that Form 16 can be issued/ generated only once the TDS is deposited. Ld. Counsel also submitted that Ld. CIT(A) has fallen in error to take into consideration the fact that the employer is under insolvency resolution plan where the revenue has already made a claim in regard to outstanding TDS and in regard to relevant financial year order u/s 201(1A) of the Act dated 28.03.2017 for recovery of demand of 16.59 crores have been issued. Thus, it was submitted that as assessee has already suffered TDS denying its credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n all the assets of the assessee in default. 8.1 It is admitted fact that order u/s 201/ 201(1A) of the Act for the relevant financial year stands passed against the assessee in default EIEL who was employer of the appellant. That being so, having taken recourse under law by raising a demand for non-deposition of TDS u/s 201 and interest u/s 201(1A) of the Act and which stands further determined and admitted under the Corporate Insolvency Resolution Process then there could have been no justification under law to deny the credit to the assessee because as such the Government's claim of TDS stands satisfied and cannot be said to be still outstanding. 9. Even otherwise Section 205 of the Act is very crystal clear in its intention and clarif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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