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February 2022

TDS — Credit for — Assessee an airline pilot and employee of airline company — Company deducting tax at source but not paying it into government account — Assessee cannot be denied credit for tax deducted at source

By K. B. Bhujle
Advocate
Reading Time 1 mins
39 Kartik Vijaysinh Sonavane vs. Dy. CIT [2021] 440 ITR 11 (Guj) A.Ys.: 2009-10 and 2011-12; Date of order 15th November, 2021 S. 205 of ITA, 1961

TDS — Credit for — Assessee an airline pilot and employee of airline company — Company deducting tax at source but not paying it into government account — Assessee cannot be denied credit for tax deducted at source

The assessee was a pilot by profession and an airline company employee. The company deducted tax at source of Rs. 7,20,100 and Rs. 8,70,757 for the A. Ys. 2009-10 and 2011-12 respectively in his case but did not deposit it in the Central Government account. The assessee was denied credit for the tax deducted at source and recovery notices for tax with interest were raised against the assessee.

The Gujarat High Court allowed the writ petition filed by the assessee and held as under:

“The Department was precluded from denying the assessee the benefit of the tax deducted at source by the employer during the relevant financial years. Credit shall be given to the assessee and if in the interregnum any recovery or adjustment was made by the Department, the assessee shall be entitled to the refund thereof with the statutory interest, within eight weeks.”

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