INCOME TAX ACT, 1961

Section 199 Section 192 Section 143

Tax deduction at source - Credit for TDS - Employer failed to pay tax deducted to credit of revenue -

Assessee filed petition against raising of demand on the ground that he received salary from employer after making tax deduction at source, but the employer failed to pay tax so deducted to credit of revenue. AO raised a demand which was nothing but tax already deducted from the assessee's salary by the employer. Assessee aggrieved that the AO was not entitled to make such demand against the salary of the assessee, as it was for them to recover such tax deducted at source from the employer, who had already deducted such tax from the salary of the assessee.Held: The challenge made in the petition was against the proceedings of raising tax demand. However, it was seen that the assessee had made repeated request by way of rectification application before the AO, but the application had not been disposed. Therefore, this Court was of the view that instead of keeping this matter pending, it was better to direct the AO to consider the rectification application filed by the assessee and pass orders on the same on merits and in accordance of law.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :

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