INCOME TAX ACT, 1961

Section 205

Tax deduction at source - Bar against direct demand on assessee - -

Assessee was an actor in feature films. AO noticed that assessee reduced his income in revised return of income. Assessee stated that he did not receive TDS certificate from one of the producers/despite close follow-up and thus, he withdrew the claim of TDS and also reduced his professional income to the extent of tax deducted at source by such producer. He further stated that he was maintaining books of account on cash basis and though the said producer deducted as tax at source but it was not remitted to Government account and not reflected in 26AS, it was clear that he did not receive the same. However, the said claim was not considered by AO stating that the assessee was required to offer the entire receipt as income including the TDS portion. Held: Since assessee was accounting his professional income on cash basis, the entire receipt including TDS would be assessed in respective assessment year. Further, since the assessee was claiming that one of the producers deducted tax from respective receipt, therefore, while determining the tax payable by the assessee, the AO was directed not to call upon the assessee to pay the corresponding taxes himself to the extent on which the tax was deducted from his income, in accordance with section 205, provided that the assessee was able to furnish the TDS certificate issued by the deductor.

REFERRED :

FAVOUR : Directions issued

A.Y. :

INCOME TAX ACT, 1961

Section 32(2)

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