Sumit Devendra Rajani vs. ACIT (Gujarat High Court)
August, 20th 2014
Upon issue of Form 16A TDS certificate, TDS credit has to be given to the payee even if there is Form 26AS mismatch or deductor is at fault for non-deposit of TDS with Govt.
The assessee filed a Writ Petition claiming that though the deductor-employer, Amar Remedies Ltd, had deducted TDS from salary and issued Form 16A, the department had not given him credit of the said TDS solely on the ground that the credit did not appear on the ITD system (Form 26AS) of the department and / or same does not match with the ITD system of the department. HELD by the High Court allowing the Petition:
U/s 204, the liability to deduct TDS is on the employer / payer. U/s 205, when tax is deductible at source, the assessee shall not be called upon to pay tax himself to the extent to which tax has been deducted from that income. This means that the assessee / deductee is entitled to credit of such amount of TDS. Even if the deductor, after deducting the TDS, does not deposit the sum with the department, the department has to recover the said amount from the deductor and cannot deny credit to the deductee (Om Prakas Gattani 242 ITR 638 (Gau) & Yashpal Sahni 293 ITR 539 (Bom) followed)