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TMI Blog2023 (8) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... will be liable on behalf of the company to pay the taxes and interest thereupon including liable to be tried under Penal provisions for non-deduction/non-deposit of tax on his own salary. I Assessee being the managing director and chief executive officer of the company himself is the principal officer/person responsible for all acts of defaults in non-deduction/non-deposit of TDS and under such circumstances, he cannot be allowed to take benefit of his own wrong. Assessee has made another attempt to harp upon a wrongful claim of the assessee by stating that the employer of the assessee company namely AMW Motors was admitted into Corporate Insolvency Resolution Process before the National Company Law Tribunal, Ahmedabad and that affairs of the assessee company was managed by resolution professional appointed by NCLT. We find that the above contention of the ld. counsel is also misleading and does not depict true picture of the events. Though the company was admitted into CIRP by the Adjudicating Authority on 01.09.2020 and Interim Resolution Professional was appointed on 01.09.2020, whereas, the financial years involved in the present appeals are F.Y 2017-18 relevant to A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dt. 06.10.2021 without giving any opportunity of hearing to your appellant. b.(ii) Your appellant strongly submits that it was denied the opportunity of hearing as also representing its case in appeal and the CIT(A) has passed the order in gross violation of the provisions of natural justice, equity and fairness. b.(iii) Your appellant prays that the orders of the CIT(A) and that of the AO be quashed. 3. c. The ld. CIT(A) erred in law and on facts in not appreciating that the ld. A.O had issued the intimation u/s 143(1) by: i. Making an unauthorized adjustment in computing the tax liability of the appellant and ii. By not issuing any prior intimation as required by s. 143(1) of the adjustment to the tax payable claimed by your appellant while filing the return of income resulting into denial of an opportunity. 3. As per the statement of facts furnished by the assessee, the brief facts of the case are that the assessee herein filed his Return of income for Assessment Year 2019-20 electronically on 30.12.2019 declaring a total income of Rs. 37,87,390/- and claiming refund at Rs. 36,360/. During the year under consideration, the assessee had earne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions of the CIT(A) and has come further in appeal before this Tribunal. 6. Earlier, the case was fixed on 31.01.2022 but no one put in appearance on behalf of the assessee. The appeal of the assessee was dismissed by the Tribunal on merits observing as under: 4. A perusal of the above grounds of appeal reveals that the main grievance of the assessee is that he has not been given the credit of the taxes deducted at source by the payer. 5. A perusal of the impugned orders of the Ld. CIT(A) reveals that the ld. CIT(A) after considering the submissions of the assessee has directed the Assessing Officer (for short A.O ) to verify the claim of the assessee and allow the necessary credit of the taxes paid/deducted at source as per law. Since the ld. CIT(A) has already granted relief to the assessee by directing the A.O to verify the claim of the assessee, I therefore do not find any reason to interfere in the order of the ld. CIT(A). The appeals of the assessee are, therefore, dismissed. 7. Though the ld CIT(A) had directed the Assessing Officer to look into and verify the claim of the assessee and allow the necessary permissible relief, still the assessee preferred a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The present two appeals are directed at the instance of assessee against the separate orders of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 22.09.2021 and 06.10.2021 passed in A.Y. 2018-19 2019-20 respectively. The solitary grievance of the assessee in both the years relates to non-given of TDS Credit admissible under section 199 read with section 205. The ld. Counsel for the assessee, at the very outset, contended that the assessee was an employee with M/s. AMW Motors Limited and during the course of such employment the employer has deducted TDS from his salary payment. Such TDS is amounting to Rs. 10,07,770/- in A.Y. 201819 and Rs. 10,09,289/- in A.Y. 2019-20. It appears that the employer has not paid the whole TDS to the Government Exchequer and, therefore, credit of this TDS has not been given to the assessee. The ld. 1st Appellate Authority while disposing of appeal of the assessee has given following directions (for reference purposes, direction in A.Y. 2018-19 is extracted below) :- I have considered the grounds of appeal, gone through the submissions of the appellant and seen the intimation of the A.O u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lary Details; Amount (Rs.) Gross Salary 39,00,000 Taxable income 38,78,300 Less: TDS Deducted 10,05,270 Net Salary Payable to you 28,92,230 As you are aware that the company is presently going through acute financial stress and the operations of the company has virtually stopped. As such, the company does not have sufficient cash flows to make the payment of your salary that is due to you as per the details given above. However, the company is hopeful of resolving the current situation and is in advanced discussions with the consortium of Lenders and proposed investors to settle the outstanding debts and revive the operations of the company. Upon successful resolution and revival of the company, the company will make the payment of the salary that is due to you and will also deposit the TDS deducted at the time of making the said payment of salary to you. We thank you for your kind understanding and support. For AMW Motors Ltd. Sd/- Authorised Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he taxes and interest thereupon including liable to be tried under Penal provisions for non-deduction/non-deposit of tax on his own salary. In other words, Mr. Anirudh Bhuwalka (the assessee) being the managing director and chief executive officer of the company himself is the principal officer/person responsible for all acts of defaults in non-deduction/non-deposit of TDS and under such circumstances, he cannot be allowed to take benefit of his own wrong. 13. At this stage, the ld. counsel for the assessee has made another attempt to harp upon a wrongful claim of the assessee by stating that the employer of the assessee company namely AMW Motors was admitted into Corporate Insolvency Resolution Process before the National Company Law Tribunal, Ahmedabad and that affairs of the assessee company was managed by resolution professional appointed by NCLT. We find that the above contention of the ld. counsel is also misleading and does not depict true picture of the events. A perusal of the order of the Company Law Tribunal passed in IA No.425/AHM/2022 shows that in para 2 of the said order, it has been specifically mentioned that the assessee company was admitted into Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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