2005 (7) TMI 339

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....vely in the two returns. As per the intimation the refund claimed as per return was granted by the Assessing Officer after processing of returns. Along with the refund on TDS, interest of Rs. 56,58,092 and Rs. 1,23,961 respectively as also granted for the above two years. Along with the intimation, no calculation of interest was given. However, it was found by the assessee that the interest under section 244A was not properly calculated and the interest granted was less than what was due. Therefore, rectification application was made for granting further interest in respect of the TDS. The, vide letter dated 18-7-2002 for both the years gave a list of various TDS certificates in which the deposit of TDS to Central Government Account was mad....

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....se income the deduction was made. It clearly lays down that "Any deduction made in accordance with the provisions of and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made....". Therefore, not only the deduction should have been made in accordance with the various provisions relating to TDS, as enumerated in the section itself, but also the payment of such amount to the Central Government, are sine qua non, in order to treat the same as a payment of tax on behalf of the person from whose income the deduction was made. Similar is the provision contained in section 206C(4), which clearly stipulates that any amount collected in accordance with the provisions of t....

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....ve support from the decision of Hon'ble Gauhati High Court, in the case of Asstt. CIT v. Om Prakash Gattani [2000] 242 ITR 638, at pages 644-645, wherein, the Hon'ble Court has observed: "However, the position as indicated above would not mean that mere deduction of the tax amount at source would amount to total discharge of the tax liability so long as the amount deducted is not deposited in the coffers of the Central Government. It is for this reason section 199 of the Income-tax Act makes it clear that credit for tax deducted would be given when the amount is deducted and paid to the Central Government and certificate of deduction is produced as furnished under section 203 of the Income-tax Act, 1961." The Hon'ble Court referred to....