2008 (10) TMI 303

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....1. 2. The appellant craves leave to amend, alter or delete any of the grounds of appeal." 2. We have heard both the parties. The assessee filed its return of income on 27th March, 2006 declaring income of Rs. 5,56,607. The assessee claimed refund of Rs. 9,732 out of TDS amounting to Rs. 2,09,414. TDS certificates issued by M/s Milestone Automobiles (P) Ltd. under s. 194-I of the IT Act were enclosed with the return of income. The AO however did not give credit for the aforesaid amount of TDS in the intimation issued to the assessee. The assessee therefore moved an application under s. 154 of the IT Act seeking credit for the TDS on the basis of respective TDS certificate enclosed along with the return. The AO rejected the rectificatio....

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....and Rs. 53,571 were deducted at source under s. 194-I of the IT Act. However, all the three TDS certificates do not contain the relevant details regarding payment of TDS into the Central Government account. The relevant columns in the TDS certificates have been left blank by the tax deductor. 4. In support of appeal, the learned Authorized Representative for the assessee invited our attention to s. 205 of the IT Act and submitted that the said section created a bar against direct demand on the assessee where tax was deductible at source and was also deducted by the deductor. According to him, the CIT(A) ought to have directed the AO accordingly. 5. In reply, the learned Departmental Representative supported the orders of the AO and th....

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....t was held that, in view of s. 205, the authorities under no circumstances could make the petitioner liable to make payment of any tax to the extent to which the tax had been deducted at source. The Hon'ble Court noted that the TDS certificate showed that tax liable to be deducted at source was deducted and therefore it was no more the liability or responsibility of the deductee to pay any tax mentioned therein. 9. The provisions of s. 205 are quite clear and free from debate. Sec. 205 of the IT Act focuses on two important elements, namely, (1) tax should be deductible at source under the IT Act and (2) the tax has actually been deducted at source. If both the conditions are satisfied the assessee cannot be called upon to pay the tax in....