The Delhi High Court ruled that the Income Tax Department cannot offset TDS

The Delhi High Court ruled that the Income Tax Department cannot offset TDS 

The Delhi High Court ruled that the Income Tax Department cannot offset TDS that has not been deposited by the deductor (employer) in the Central Government Account against the refund due and payable to the assessee because it is prohibited by Section 205 of the Income Tax Act, 1961. In this case, the assessee raised issue before the court that the outstanding demand for AY 2012-13, raised due to TDS, was not deposited by the employer with the Central Government, and that the refund due to him for AY 2015-16 was not paid to him, but was instead set-off against the said demand.



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