Before imposing s. 201 TDS Liability, AO to show that recipient has not paid tax

Ramakrishna Vedanta Math vs. ITO (ITAT Kolkata)

The AO passed an order u/s 201 in which he held the assessee to be in default for failure to deduct TDS u/s 194C on payments made to contractors. The assessee’s argument that in view of Hindustan Coca Cola Beverages 293 ITR 226 (SC), the tax could not be recovered from it as it must have been recovered from the recipient was rejected on the ground that the onus was on the assessee to prove that the recipient had paid the taxes. On appeal by the assessee to the Tribunal, HELD allowing the appeal: