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TMI Blog2023 (1) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... ble opportunity of hearing for substantiate its claim. Appeal of the assessee allowed for statistical purposes. - I.T.A. No. 123/Asr/2022 - - - Dated:- 27-12-2022 - DR. M. L. MEENA , ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE , JUDICIAL MEMBER For the Appellant : Sh. S. S. Kalra , CA. For the Respondent : Sh. Hitendra Bhauraoji Ninawe , CIT DR ORDER Per : Anikesh Banerjee , JM : The instant appeal of the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeal)-5,Ludhiana, [in brevity the CIT (A) ] bearing appeal 10721/IT/CIT(A)-5/LDH/2014-15, date of order 23.05.2022, the order passed u/s 250 (6) of the Income Tax Act 1961, [in brevity the Act] for A.Y. 2015-16.The impugned order w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t paid balance amount but not deposited in the government treasury. During search proceeding, the department has acquired information that the TDS amount was not credited on behalf of the assessee and the assessment was completed u/s 153A/143(3) of the Act by denying the claim of TDS of the assessee. The assessee filed a rectification petition before the ld. AO u/s 154 and prayed for accept the claim of TDS deducted by the party. But there is no credit in the 26AS or there is no such any departmental proof as benefit of TDS credit against the assessee. The ld.AO had rejected the petition u/s 154 of the assessee and denied the claim of TDS. Aggrieved assessee filed an appeal before the ld. CIT(A). The ld.CIT(A) has confirmed the observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 539 (BOM). It was a case where the employer while paying salary to the employee had deducted tax at source Rs. 6.66 lakhs. Subsequently, disputes arose between the employer and employee due to which service of the employee was terminated. The employee filed the return of income claiming credit of TDS of Rs. 6.66 lakhs. The Assessing Officer issued intimation under Section 143(1)(a) of the Act denying credit of TDS of Rs. 6.66 lakhs on the ground that such amount was not deposited by the employer. This Court in such background after referring to Section 205 of the Act held and observed. 3.2 The ld. counsel for the assessee further relied on the order of the Karnataka High Court in the case of Smt. Anusuya Aiva vs. Dy. Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct reads as under: 205. Bar against direct demand on assessee : Where tax is deductible at the source under Sections 192 to 194, Section 194A, Section 194B, Section 194BB, Section 194C, Section 194D, Section 194E, Section 194EE, Section 194F, Section 194G, Section 194H, Section 194-I, Section 194J, Section 194K, Section 195, Section 196A, Section 196B, Section 196C and Section 196D, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income. On a plain reading of this provision, it is very clear that in a situation where the tax is deductible at source under Section 194-I of the Act, as in the present case, and to the extent to which the tax has been deducted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and factual deduction and nothing more. Insofar as such requirements are concerned, in the present case, it is not much in dispute that it has happened or fulfilled. In fact, the bar only is not to raise demand on the assessee herself or to enforce recovery on the assessee after the deduction is made in respect of the amount deducted. That means, once deduction is made, the Revenue is expected to look upto the person who had deducted the tax for realizing the amount, if such person fails in remitting the amount to the Central Government. 4. The ld. counsel further relied on the order of the Coordinate Bench of ITAT, Delhi in case of Sanjay Gupta vs. ITO ITA No.1031/Del/2022 order dated 19.10.2022. The relevant para is reproduced as u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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