9911796707
TMI Blog2023 (2) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is received in the Central Government account - HELD THAT:- According to us, Section 205 read with instruction dated 01.06.2015, clearly point in the direction that the deductee/assessee cannot be called upon to pay tax, which has been deducted at source from his income. The plain language of Section 205 of the Act points in this direction The adjustment of demand against future refund amounts to an indirect recovery of tax, which is barred under Section 205 of the Act. The fact that the instruction merely provides that no coercive measure will be taken against the assessee, in our view, falls short of what is put in place by the legislature via Section 205 of the Act. Therefore, in our view, the petitioner is right inasmuch as neither c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s withholding tax payable on salary, an amount equivalent to Rs.13,98,901/-. 3.1 The record shows that the withholding tax is reflected in Form 16A issued by the petitioner's employer, i.e., KAL. 3.2 It has also come to fore that KAL did not deposit the withholding tax and, hence, a demand amounting to Rs.11,62,580/- was raised by the respondents/revenue, for AY 2012-13. 3.3 According to the petitioner, because of the outstanding demand concerning AY 2012-13, the refund payable to him for AY 2015-16 was not paid to him, and instead, set-off against the said demand. 4. It appears that the petitioner did articulate his grievance via an application dated 05.02.2019, which did not receive the response that the petitioner expected. Instead, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 205 Bar against direct demand on assessee. Where tax is deductible at the source under the foregoing provisions of this Chapter, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income." 8. The instruction dated 01.06.2015 is aligned with the aforesaid provision of Act inasmuch as it clearly provides in paragraph 2 that since the Act places a bar on a direct demand qua the deductee assessee, the same cannot be enforced coercively. For the sake of convenience, paragraph 2 of the said Instruction is extracted hereafter: "…2. As per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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