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Credit for TDS reflected as deducted from the employee's income...

Employee TDS credit dispute when employer deducted but didn't deposit tax; credit allowed and refunds with interest ordered.

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Income Tax January 9, 2026 Case Laws HC
Credit for TDS reflected as deducted from the employee's income was denied solely because the employer failed to deposit the tax with the Central Government account. Applying the principle that an assessee cannot be prejudiced for the deductor's default where deduction is evidenced, the authority was directed to grant the TDS credit to the employee. Any recovery or adjustment already effected on account of the consequent demand was ordered to be refunded with statutory interest within eight weeks. - HC

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Acts Income Tax