A judgment is an authority for what it decides. It applies only to those cases in which the requisite amount of tax has been deducted at source out of payments made to the payee and thereafter deposited on or before the due date stipulated by law. The said judgment does not apply to a case where the assessee has failed to deduct the tax itself at source out of payments made to payee in accordance with the provisions of Chapter-XVII-B. In the present case, the assessee has failed to deduct the tax at source out of payments made to the sub-contractors on 12-05-2005, 20-06-2005 and 08-11-2005 and therefore the judgment of the Hon’ble Calcutta High court in CIT v. Virgin Creations is not applicable to the case of the assessee.
