TaxTMI 
TaxTMI 
2023 (2) TMI 261
X X X X Extracts X X X X
X X X X Extracts X X X X
.... credit u/s 143(1) of the Act for tax deducted at source by the employer amounting to Rs.8,21,149/- (which amount has swelled to Rs.11,39,290/- with interest) that was not deposited with the exchequer. 3. Briefly stated, the facts of the case are that the assessee has been an employee of M/s. Earth Water Limited (in short 'EWL') working as Chief Operating Officer. Return was furnished declaring total income under the head 'Salaries' at Rs.38,57,500/- and also claiming credit for deduction of tax at source amounting to Rs.9,04,632/- on such salary income. The return was processed u/s.143(1) allowing credit for tax deducted at source from salary only to the tune of Rs.83,483/-. The remaining amount of tax deducted at source by the employer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has been paid. The moot question is about allowing or otherwise of credit for tax deducted at source from the salary income, which was not deposited by the employer due to its own precarious financial condition. Admittedly, the amount of tax deducted at source to the tune of Rs.8,21,149/- has not gone to the coffers of the Revenue. At the same time, it is equally true that such amount of tax was deducted at source from salary of the assessee for full year, even though salary was paid only for six months despite the assessee serving EWL for full year. 5. Section 15 of the Act provides that any salary due from employer whether paid or not is chargeable to tax under the head `Salaries'. This indicates that salary income becomes chargeable t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d fee, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under section 89, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax, interest or fee;' 7. On going through section 143(1) of the Act, it becomes ostensible that the total income as computed under its clause (a) is considered for computing the amount of tax etc. payable on it as per clause (b). Clause (c) then comes into operation, which provides for determining the amount payable or refundable to the assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1) or regular assessment as reduced by the amount of: `(i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income'. Since section 234B has reference to advance tax. Computation of advance tax has been dealt with in section 209 of the Act. There are four clauses, (a) to (d) of section 209(1) of the Act, and clause (d) provides that : `the income-tax calculated under clause (a) or clause (b) or clause (c) shall, in each case, be reduced by the amount of income-tax which would be deductible or collectible at source during the said financial year ....'. Effect of the above provision is ....