The assessee claimed that the deductor had deducted tax but ...

Tax deducted but not deposited: Assessee not liable for recovery.

Case Laws Income Tax

November 15, 2024

The assessee claimed that the deductor had deducted tax but failed to deposit it with the Central Government, leading to a mismatch between tax credits claimed and allowed. The High Court held that the assessee cannot be proceeded against for recovery of tax dues when the deductor had deducted the tax but not paid it to the Central Government. The Tribunal found that the CIT(A) should have sought a remand report or remitted the issue to the AO to verify the genuineness of the assessee's claim. If the claim is found genuine upon verification, the assessee is not liable to pay the demanded tax, and the judgments relied upon by the assessee would apply. The Tribunal allowed the assessee's appeal for statistical purposes, directing further verification of the claim.

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The assessee claimed that the deductor had deducted tax but ...

Tax deducted but not deposited: Assessee not liable for recovery.

Case Laws Income Tax

November 15, 2024

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