TaxTMI 
TaxTMI 
2025 (3) TMI 1879
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....ble CIT (Appeals) erred in confirming the order dated 29.03.2023, as the reference number (DIN) was affixed manually which is in violation of the CBDT Circular No. 19/2019 dated 14th August, 2019. Thus, the proceedings and order were not in accordance to CBDT Circular and judicial pronouncements and therefore, the action of the Ld. A.O. was illegal and therefore deserves to be quashed or set aside. 2. Without prejudice to the GOA-1, under the facts and circumstances of the case, the Hon'ble CIT (Appeals) erred in confirming the demand raised by the Ld. AO on the assessee-in-default (deductor bank) during the pendency of the SLP No. 16734/2023 & stay order wherein the assessee-bank is bound to not to make any recoveries from the....
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....e r.w.s sections-190 and section-191(1). Thus, considering the provisions stated herein above, the bank cannot be treated as the assessee in default and therefore, the assessment order deserves to be quashed and set-aside. 5. Without prejudice to the GOA-1 to 4, under the facts and circumstances the Hon'ble CIT (Appeals) erred in confirming the order wherein the Ld. A.O. passed the order without referring the legal position, arithmetic calculation for tax payable. The Ld. A.O. also not followed the principal of natural justice and held bank as responsible and treated as assessee in default. The appellant reserves his right to add, alter, modify, or delete any grounds of appeal. 2. The brief facts of the case are tha....
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....before us put light on very important facts relevant to decide the matter. Before that we would like to emphasize that the settled principle is payer cannot be held liable for payment of the tax demand in cases involving non deduction of tax at source and only interest liability under section 201(1A) of the Act, if any, can be levied in such cases. The coordinate Mumbai Bench in the case of Vodafone Essar Limited (ITA Nos. 6058, 6059, 6060/Mum/2009), wherein, this Tribunal directed the assessing officer to invoke his powers under the Act and verify payment of taxes by the payees from the respective Assessing Officers assessing the payees with the help of the PANs of the payee furnished by the Appellant. Here in this case also the relevant i....
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....ed against an employer, no fault can be found with him. It cannot be held that he has not deducted tax on the estimated income of the employee. None of the employer would like to invite trouble for his employees and will always like to comply to the extent possible with tax laws. In this case also, the revenue is failed to demonstrate any negligence or malafide at the end of the deductor assessee. 5. The Delhi High Court in the case of CIT v. Delhi Public School [2011] 15 taxmann.com 107/203 Taxman 81 (Delhi)) has held that when TDS has been deducted on "estimated income " of the employee, the employer was not expected to step into the shoes of the Assessing Officer and determine the actual income. Furthermore, under Section 191 of the A....
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....tions. It is also brought to our notice that there was a spot survey on the deductor assessee on 19.02.2014 but the notices u/s. 201(1) and 201(1A) of the Act was issued only after receiving the information from the DCIT, TDS (Circle) 2(2), Mumbai, dated: 17.03.2023. Why the matter was not examined for this F.Y. also, when the matter was examined for F.Y.s 2012-13 and 2013-14. 7. The scheme of the assessment proceedings can't be equated with the scheme as envisaged in section 201(1) and 201(1A) of the Act. The liability of the deductor u/s. 201(1) of the Act is not automatic, the department must verify and bring on record, whether action against the beneficiary has been initiated and due taxes by them have been paid or not. If the deduct....