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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 ..... ore him along with Form 35 on 16.07.2020 wherein your appellant had claimed that by operation of section 205 or otherwise once the tax was deducted at source by the payer, the credit for the same should be given to the payee irrespective of the fact of depositing the deducted tax by the payer with the Government of India in its Treasury Department. In as much as on such deduction the payee became fully entitled to claim the credit of such tax so deducted which could not have been denied by the AO. a.(ii) Your appellant submits that the fact that the tax was deducted at source by the payer is not in dispute and the credit therefore was allowable in accordance with law and section 205 of the Act and also instruction no. 275/29/2014-IT-(B) dt. 01.06.2015. a.(iii) Your appellant prays that the credit for the amount of Rs. 10,09,289 being TDS be allowed in computing the tax payable by your appellant. 2. b.(i) The Ld. CIT(A) erred in adjudicating the appeal vide his 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 CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho had suffered the deduction. Thus, the demand determined under the Intimation was thus bad in law, against the principles of natural justice and fair play. 5. The ld. CIT(A) considering the above submissions of the assessee, passed the following directions: "I have considered the grounds of appeal, gone through the submissions of the appellant and seen the order of the AO u/s. 143(1) of the Act. The grounds of appeal relate to denial of TDS credit which according to the appellant was deducted from his salary income but is not appearing in Form 26 AS and as a result demand along with interest u/s 234B and 234C has been levied upon him. Considering the facts and circumstances of the case I deem it fit to refer the matter to the AO who will examine the claims of the appellant and allow necessary relief/ credit permissible by law. Subject to the above the appeal is allowed." However, the assessee did not get satisfied with the above directions 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 obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e burdened with the tax liability and that the assessee may be given the credit of the TDS deducted at source by his employer and after setting off of the tax demand, the balance amount be refunded to the assessee. 9. In view of the above submissions of the ld. Counsel, this Tribunal passed the following order on 18.01.2023: "The 1d. AR of the assessee has submitted that in this case though the employer of the assessee had deducted TDS but the same was not deposited with the Department, for which, there was no fault of the assessee. Further that the Department has refused to give credit of the said TDS deducted by the employer of the assessee. The ld. counsel for the assessee is directed to furnish the details of the employer along with name, address, PAN number etc. Adjourned on 8th February 2023." 10. Therefore, the case was adjourned to 08.02.2023 on which date, the Tribunal passed the following order: "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 soli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for the F.Y 2017-18 has been mentioned by the employer of the assessee namely "AMW Motors Ltd". The contents of the said letter are reproduced as under: AMW BUILT TO WIN March 10, 2021 To Mr. Anirudh Bhuwalka MD & CEO AMW Motors Ltd. Mumbai. Dear Sir, Sub: Your salary for the Financial Year 2017-18 (Assessment year 2018-19) This is to confirm that as per company records, the following salary is accrued to you for the financial year 2017-18 (A.Y 2018-19): Name of Company AMW Motors Ltd. PAN of Company AAKCA0327R TAN of Company MUMA436726 Name of Employee Anirudh Bhuwalka PAN of Employee AEGPB7445E Salary 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 consorti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 271C, it would be Mr. Anirudh Bhuwalka (the assessee) being the managing director and the principal officer of the company who would be liable to be prosecuted u/s 271C of the Act for default in deduction of TDS or non-deposit of TDS. Therefore, even otherwise, if the taxes to be recovered from the company, it will be Mr. Anirudh Bhuwalka (the assessee) who 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. 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 affai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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