No coercive action against payee if payer failed to deposit TDS collection with Govt.: HC

Pushkar Prabhat Chandra Jain v. Union of India - [2019] 103 taxmann.com 106 (Bombay)

The petitioner had sold an immovable property for Rs. 9 crores. The purchasers made a net payment of Rs. 8 crores 91 lakhs to the petitioner after deducting tax at source at 1 per cent of the payment in terms of section 194-IA.The petitioner filed the return of income and claimed credit of TDS of Rs. 10.71 lakhs.

The Income-tax department noticed that only an amount of Rs. 1.71 lakh was deposited and thus demand of Rs. 10.36 lakhs was raised against the petitioner comprised of the principal tax and interest payable thereon.

The Bombay High Court held that section 205 carries the caption 'Bar against direct demand on assessee'. The section provides that where tax is deducted at the source under the provisions of Chapter XVII, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.

It is always open for the department and in fact the Act contains sufficient provisions, to make coercive recovery of such unpaid tax from the payer whose primary responsibility is to deposit the same with the Government.If the payer after deducting the tax fails to deposit it in the Government account, measures can always be initiated only against such payers.

Comments

CBDT Instruction No 5/2014 dated 10.07.2014

Dear Members, The Hon'ble CBDT has issued Instruction No 5/2014 dated 10.07.2014 , by which the monetary limits for filing appeals to ITAT / HIGH COURT / SUPREME COURT have been revised. The New limits are: Tax effect Appeal before ITAT Rs. 4,00,000/- High Court Rs. 10,00,000/- Supreme Court Rs. 25,00,000/- Copy of Instruction is attached for your information.

DVAT – Form T 2 form when to fill, what to do?

DVAT – Form T 2 form when to fill, what to do? The Trade and Taxes Department Delhi has issued a notification dtd. 17/05/2013 clarifying the requirements with regard to Form - T2 applicable to Purchasers/ Importers/ Dealers who are receiving goods from outside Delhi. Applicable to Whom Dealers having GTO more than or equal to Rs. 10 crores in the FY 2011-12. Exemption Dealers dealing exclusively in Tax Free Goods need not file T2. What if the turnover was not 10 crore in 2011-12 but exceeds limit in any subsequent year? T-2 shall become applicable from such subsequent year in which T/o exceeds Threshold limit. What if Turnover is 10 crores or more in one FY for example 2011-12 And then in subsequent FYs T/o is below 10 Crores what is the liability regarding T-2? Once the dealer becomes liable he shall have to file T-2 for all times to come. Even if T/o in subsequent FY is below 10 Cro...

IT : Long-term capital loss of sale of equity shares attracting STT is allowed to be set off against long term capital gain on sale of land in accordance with section 70(3)

IT : Long-term capital loss of sale of equity shares attracting STT is allowed to be set off against long term capital gain on sale of land in accordance with section 70(3) • Section 10(38) excludes in expressed terms only the income arising from transfer of Long term capital asset being equity share or equity fund which is chargeable to STT and not entire source of income from capital gains arising from transfer of shares. • It does not lead to exclusion of computation of capital gain of Long term capital asset or Short term capital asset being shares. • Accordingly, Long term capital loss on sale of shares would be allowed to be set off against Long term capital gain on sale of land in accordance with section 70(3). ■■■ [2015] 58 taxmann.com 115 (Mumbai - Trib.) IN THE ITAT MUMBAI BENCH 'D' Raptakos Brett & Co. Ltd. v. Deputy Commissioner of Income-tax, Mumbai B.R. BASKARAN, ACCOUNTANT MEMBER AND Amit Shukla, JUDICIAL MEM...

N K GOEL AND BROS.

Search This Blog