The Madras bench of the ITAT in Income-tax Officer vs. Kodaikanal Finance Ltd. (55ITD480) held that in the case of salaried employees there is vicarious responsibility of the employer for the acts or omissions done by the employees concerned. In such a situation, there is close relationship between the employer and employee and, therefore, the employer, even if, he fails to deduct tax at source, it can be paid by the employee concerned and the employer could ensure such payment by the employee because of the complete control over the employees in the matter-discharge of liability to deduct tax from salary and payment to the Government. The bench further clarified that this doctrine would have no application in the matter of obligations under section 194A where the interest is paid/payable to multifarious persons or parties over which neither the assessee(s) nor the Assessing Officer would have any control to ensure the payment of tax on the interest income received by the recipients. Hence in such case neither the liability to pay tax nor the liability to pay interest thereon would switch over to the recipients of interest or other specified incomes under Chapter XVII of the Income tax Act, 1961. In other words even if the tax has been realized once, it can be realized once again from the recipients of incomes other than salary.