Income Tax TDS deducted but not deposited with the Department; credit allowed?
Whether the assessee is entitled to credit concerning the tax which had been deducted with respect to the transaction entered into by him?
Delhi HC held that demand against assessee not sustainable.
Act does not seem to cast a burden on the deductee/payee with regard to the deposit of money, which is retained as tax, by the payer i.e., the deductor.
Therefore, insofar as the deductee/payee is concerned, once the payer/deductor, who acts as an agent of the Central Government, has retained money towards tax, credit for the same cannot be denied, having regard to the consequences and
the modes available for recovering the said amount from the payer/deductor.
Title: The Principal Commissioner of Income Tax -15 vs Jasjit Singh
Court: Delhi High Court
Citation: ITA 295/2023
Dated: 02-Nov-2023
Friends
Can we import these principles in GST Regime. Seller/Vendor definitely act as agent of the Government while receiving money and depositing the amount. If TDS (Income Tax) cannot be denied, then why ITC is denied in GST when Vendor has not deposited Tax and ITC is denied?
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification