Tds

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Hamid (Querist)
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30 December 2011 My client has received a notice from IT department for short deduction of TDS and have been asked to pay the TDS with interest..
Actually client has short deducted the TDS on salary paid to Directors, but, directors had paid the tax as self assessment tax at the time of filing ITR.
Can you pls help me out with relevant CASE LAWS so that TDS and penalty can be saved as there is no loss of revenue to Govt.
Thanking you

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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30 December 2011 The ITAT Mumbai bench in Chattisgargh State Electricity Board vs. ITO(TDS)

Under the Explanation to s. 191, a person can be treated as an assessee in default u/s 201(1) only when, apart from the lapse in deduction of tax at source, the recipient of income has failed to pay such tax directly. S. 201(1) imposes vicarious (and not penal) liability on the payer to make good the shortfall in tax collection. If the tax liability is discharged by the recipient of income, the vicarious liability cannot be invoked.

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https://www.simpletaxindia.net/2011/12/section-194-i-tds-on-rent-payee-must.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+SimpleTaxIndia+%28SIMPLE+TAX+INDIA%29

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Hamid

Hamid (Querist)
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30 December 2011 Sir, can you please give me an idea regarding how to represent my case in front of Assessing Officer by giving reference to this case law.
Thank You

Hamid

Hamid (Querist)
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30 December 2011 Is there any H.C. or S.C. judgement on this issue?

CA. RAGHAV GARG

CA. RAGHAV GARG (Expert)
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30 December 2011 Dear Hamid,

Cheque with Hindustan Coca cola Bevereges Private Limited v/s Cit, 293 ITR 226 (SC)

This case of supreme court will solve all your problems.

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