TaxTMI 
TaxTMI 
2015 (10) TMI 2798
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....been deducted by the 2nd respondent herein while paying rent, and to treat the 2nd respondent as the defaulter and also directing the 1st respondent to recover the dues from them under the provisions of the Income Tax Act, 1961 for the years 2011-12, 2012-13 and 2013-14, the respective petitioner have come forward with these writ petitions. 2. Heard both sides and also perused the records carefully. 3. The issue is related to deduction of TDS by the 2nd respondent. According to the petitioners, the 2nd respondent deducted TDS and though necessary details were furnished to the authority concerned by the petitioners, recovery proceedings are sought to initiated. Hence, the petitioners are now before this court for appropriate reliefs. ....
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....tated above, is paid to the Central Government, there shall be a charge upon all the assets of the company. Moreover, section 221 of the Act, inter alia, provides for the levy of penalty and section 276B of the Act, inter alia, provides that where a person fails to pay to the credit of the Central Government, the tax deducted at source, such person shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and provides for levy of fine. Thus, the Act provides for complete machinery to recover the tax deducted at source from the person who has deducted it. " 18. At this stage, we may also note that every person deducting tax at source is required to issue a....
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....e Act comes into operation and it is immaterial as to whether the tax deducted at source has been paid to the Central Government or not, because elaborate provisions are made under the Act for recovery of tax deducted at source from the person who has deducted such tax. 18. Following this judgement, a learned Single Judge of Karnataka High Court in the case of (Smt.Ansuya Alva vs Deputy Commissioner of Income Tax) reported in (2005) 278 ITR 206 , interpreting sec.205, has held as follows: " 9. I am of the view that this understanding and such interpretation of Section 205 of the Act is also in consonance with the general principles of law, particularly the principles of the Law of Principal and Agent. If we look at the sch....
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....embarking on the recovery proceedings in respect of such amount. If such being the object of the provision, it is not possible to understand the word 'deduct' occurring in Section 205 as 'deducted and remitted'. 10. Even on the general principles of law, the Law of Principal and Agent, as discussed above, for a default of the agent of the Revenue, the petitionerassessee, who is a third party in relation to such relationship cannot be penalised. In the circumstances, I am of the view that the Revenue is to be definitely restrained in terms of Section 205 of the Act from enforcing any demand on the assessee-petitioner insofar as the demand with reference to the amount of tax which had been deducted by the tenant of th....