Can I claim TDS and file ITR-4 if the deductor deducted TDS under Section 194J but failed to deposit it with the Income Tax Department?

Its a long and difficult way.

First, since the TDS has not been deposited, it will not be reflected in Form 26AS and hence, when you file returns, you will not be given credit by the income tax processing centre.

You will have to file an appeal before the Commissioner (Appeals) showing various supporting documents and evidence of deduction of taxes. There are certain supporting judgments of even High courts like Yashpal Sahni etc. where the Courts have laid down the principle that once the tax is deducted, the deductee (i.e. yourself in this case) should get the credit and the department should recover the same from the deductor.

If the Commissioner (appeals) does not accept the same for any reason, file an appeal before the Income Tax Tribunal. there are very good chances you will get relief here.

PS: Also send reminders and legal notices to the deductor. These will be invaluable later on.

—— Direct Tax Team

Entrecap Business Services

The above answer is with respect to the specific query (with limited inputs) asked on an open platform. It shall not constitute or mean or purport to mean actionable legal or professional advice in any manner. Readers are advised to speak specific professional advice before making a decision. Team Entrecap Business Services, while attempting, to answer a query, to the best of its ability, is in no way responsible for any action taken by anyone based on above answer.

 

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