Deduction of tax at sources

(1) The tax payable under this Act by any person in the employment of any Government, local authority, company, firm or other association or persons shall, in the manner prescribed be deducted by the principal officer thereof from any amount payable to such person on behalf of such Government, local authority, company, firm or other association of persons. (2) The principal officer making any deduction under sub-section (1) shall submit to the assessing authority such returns and within such times may be prescribed. (3) The assessing authority may take action, if he thinks fit, in the manner provided by sub-section (2) of Section 8 and by section 9 in the case of any person in respect of whom hw is satisfied that no return under sub-section (2) has been furnished or a return furnished under that sub-section is inaccurate or deficient. (4) Where any principal officer fails to deduct any tax or after deducting fails to pay it as required by or under this Act, he shall, without prejudice to any other consequences he may incur under this Act, be deemed to be a person in default in respect of the tax not deducted or paid and all the provisions of section 20 shall apply to him: Provided that the assessing authority shall not make a direction under sub-section (2) of section 20 for the recovery of any penalty from such person unless it is satisfied that such person has willfully failed to deduct and pay the tax. (1) The assessing authority may, by a written notice require any person to attend before him and to give evidence or produce document, as the case may be, for the purpose of determining the liability of himself or of any other person to taxation under this Act. (2) Such person shall on such requisition be legally bound to attend and give evidence or produce documents, if in his power and possession, as the case may be, at the place and time specified in such notice, and whoever is required to produce a document may either attend and produce it or cause it to be produced.