2023 (2) TMI 1079

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....ithholding tax has been deducted, whether the deductee, i.e., the assessee, can be called upon to pay tax equivalent to the deduction made ? (ii) Whether the respondents/revenue can adjust the withheld tax which has not been deposited by the deductor in the Central Government Account, against the refund due and payable to the deductee/assessee? 2. It is not in dispute that the petitioner was an employee of Kingfisher Airlines Limited [hereafter referred to as "KAL"] from 12.01.2008 up until 10.02.2012. 3. It is also not in dispute that insofar as the assessment year (AY) 2012-13 is concerned, the petitioner's employer, i.e., KAL, had withheld, towards withholding tax payable on salary, an amount equivalent to Rs.13,98,901/-. ....

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....only be given in terms of Section 199 of the Act, when the amount is received in the Central Government account. 5.1 It is, therefore, his submission that while no coercive measure can be taken against the petitioner, the demand will remain outstanding and cannot, thus, be effaced. 6. We have heard counsel for the parties. 7. According to us, Section 205 read with instruction dated 01.06.2015, clearly point in the direction that the deductee/assessee cannot be called upon to pay tax, which has been deducted at source from his income. The plain language of Section 205 of the Act points in this direction. For the sake of convenience, Section 205 is extracted hereafter: "Section 205 Bar against direct demand on assessee. ....