TaxTMI 
TaxTMI 
2024 (9) TMI 1847
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....ommissioner) u/s 250 of the Income Tax Act, 1961 (in short 'the Act'). 2. All the appeals under consideration having involved identical issue, therefore for the sake of brevity, the same were heard together and are being disposed of by this composite order by taking the facts of ITA No. 3203/M/2024 as a lead case and result of the same shall apply mutatis mutandis to all the appeals under consideration. 3. Coming to ITA No. 3203/M/2024, the relevant facts for determination of this appeal are that the Assessee being an employee of M/s. Kingfisher Airlines has declared his total income at Rs. 28,49,673/- by filing his return of income for the assessment year under consideration on 31.07.2011, which was processed by the CPC on 22.02.2013....
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....umstances and by holding that the ground of appeal that the CPC has grossly erred in denying the credit of TDS amount of Rs. 6,69,023/- is not maintainable, ultimately dismissed the appeal of the Assessee. 5. The Assessee, being aggrieved, is in appeal before us. 6. Having heard the parties and perused the material available on record including the salary slips issued by employer M/s. Kingfisher Airlines and the bank statements reflecting corresponding amounts paid as net salary credited in bank as per salary slip, which goes to show that in the AY under consideration, the following amounts qua total salary, TDS deducted and net salary paid, appears to have been determined and paid: Total salaries amount Rs. 29,96,873/- in to....
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....aid to a payee or on the sum credited to the account of a payee shall not be deemed to be an assessee in default in respect of such tax if such payee- (i) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed : Provided further that no penalty shall be charged under section 221 from such person, unless the Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct and pay such tax. (1A....
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....such order.] (2)Where the tax has not been paid as aforesaid after it is deducted, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (1A) shall be a charge upon all the assets of the person, or the company, as the case may be, referred to in sub-section (1). (3) No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of seven years from the end of the financial year in which payment is made or credit is given or two years from the end of the financial year in which the correction statement is delivered under the proviso to sub-secti....
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....xtent to which tax has been deducted from that income. 6.4 In cumulative effects, the provisions of section 201 & 205 clearly depicts that any person who is required to deduct the TDS being an employer, if after deducting the tax, fails to pay the whole or any part of the tax then he may be deemed to be an Assessee in default in respect of such tax but not the other person like the Assessee in this case. Further, where the tax is deductable at source under the provisions of chapter XVII of the Act, then the Assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income. 6.5 Coming to the reason given by the Ld. Addl/Joint Commissioner that the Assessee failed to provide even Form....
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.... petitioner shall not be entitled for the refund of the same. 6.7 Coming to the merits of instant case, as the Assessee, by filing a specific affidavit as well as annexures such as salary slips and bank statements etc. and detailed chart containing total salary, TDS deducted and net salary received in particular months and corresponding bank entries depicting credit of actual salary amounts credited/received, demonstrated the genuineness of its case. It was a fault of the employer, as the employer though deducted the TDS but not deposited the same in the Government account, which resulted into mismatch in the Form-26AS and therefore the employer can only be considered as "deemed to be in default" in respect of such TDS deducted but not t....