sec 194C and Sec 205-

Dear Karthi,

Thnks brother I could recollect that few days back when a question similar to this was posted I said that assessee has to deposit the tax on self assessment but then I didn't knew about this fact that if assessee does not deposit then department cannot recover it from the assessee.......

U r rite that-

Sec 205 & the judgements said it clearly that it cannot be recovered from the assessee...

I would say if u can prove that TDS was indeed deducted by the payer then AO cannot force assesee to make the payment........

As far as notice is concerned u just have to file a reply along with the proof that tax was indeed deducted by the payer, if necessary simply cut copy ur question & paste it on the reply......:)

Dear Amir 

If that party who had deducted assessee's TDS is now paying that amount to Assessee then what will be the tax implications on Assessee ?

Dear Poornima,

Damn Good.......!

It will be treated as assesse's Income in the year of receipt...............

I cant understand the last post Amir bhai, 

cos the income would have been offered to tax earlier,

and section 198 says that the TDS deducted is part of income....

So if the amount is paid to assessee, it cannot be treated as income of the year of receipt....

I think at the most AO can impose 234B and 234C......

pls tell me if i am wrong....

Bhai,

TDS deducted is considered as receipt of income, rite...........

 Ok lets do this way -

I have got refund of tax from department..is it taxable...no cos it was never allowed as deduction in computing the income or tax...interest on refund is taxable since it is an income...

But in the present case I have got TDS, not from the department but from a Customer, now I had already claimed this amount in computing my liability..

Further don;t u think assesee has doublly benefited or what is called as concept of "Unjust enrichment" under Indirect Taxes...

Under Indirect taxes, the refund is not allowed to assessee unless he proves that he has borne the burden of tax & has not shifted the burden on the customers....

In the present case, First department has allowed him credit of TDS & then he has also got the same from the customer...