Intimation u/s. 245

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Prateek Tiwari (Querist)
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16 October 2015 Hello Sir/Madam,

One of my client was an employee of Kingfisher Airlines in F.Y 10-11, 11-12, 12-13. For the above said period Kingfisher have deducted TDS from Salary & subsequently we have claimed TDS in the Income Return for the above period.

In FY 2014-15 I have refund (already filed Income Tax return) which is on hold. Now we have received communication u/s. 245 for adjustment of Refund.

My query is Since Kingfisher have already deducted TDS from Salary, They have not filed TDS return, assessee is not liable to pay for the same year twice. I have also approached to Jurisdictional A.O, they accepted our application, but they told us that It’s not in their hand. Since we all are familiar with Kingisher Airlines & its issues, its not possible to recover the same from them.

With reference to CBDT Order Instruction no. 275/29/2014-IT-(B) dated 1/6/15 – Income Tax

“The assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases and the demand on account of tax credit mismatch cannot be enforced.

Further Section 205 of the Act provides that where tax is deductible at the source under Chapter XVII of the Act, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted by the employer/Deductor.

I have also informed the cpc in writing on the same & along with that I have also enclosed all the relevant documents ( like copy of letter, Form 16, CBDT Order etc.)

Please provide me the solution on the same, so that I can get the refund.

Thanks,

Amol S Joglekar

Amol S Joglekar (Expert)
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16 October 2015 I think the CBDT instruction aims at the cases where tax has been deposited by the deductor.
In your case, I think, TDS was not at all deposited to Govt account by Kingfisher Airlines.
In the absence of this, I dont think you have any strong case in your favour. At the most what you can do is offer salary after deduction of TDS as gross salary and pay the income tax accordingly.

A COLLECTIVE effort by all the employees of Kingfisher Airlines MAY make some difference. But at individual level, I dont think anything is possible.

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Prateek Tiwari

Prateek Tiwari (Querist)
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16 October 2015 Any more guidance on this.

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