Employer's failure to deposit TDS can't deny employee's TDS credit: High Court ruling on TDS credit adjustment.

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....The High Court ruled that the provisions of section 205 regarding non-deposit of Tax Deducted at Source (TDS) by the employer are applicable. The petitioner's refund was adjusted against the outstanding demand, but the court held that the department cannot deny the benefit of TDS deducted by the employer during the relevant financial years. The credit of such TDS must be given to the petitioner for the respective years. If any recovery or adjustment has been made from the refunds of later years, the same shall be returned to the petitioner with statutory interest. The decision was based on previous rulings in similar cases involving employees of Kingfisher Airlines where TDS was deducted but not deposited by the employer.....