2023 (8) TMI 1341 - HC - Income Tax

Order passed u/s 201 - petitioner had not deducted TDS u/s 194A for interest payments during various financial years especially when such interest payments were above Rs.10,000/- and also called for necessary 15G and 15H forms from the petitioner - HELD THAT - This Court has perused the impugned orders and finds that even though the petitioner has admitted that they have not been able to furnish all the necessary particulars required by the Department, it is seen that it is only at the time of the survey. However, even from the impugned order it is seen that in para 5 under the heading 'Hearing letter calling for Interest payment details for the Financial Year' the Department has made the marks - Interest payment details above and below Rs.10,000/- have been furnished vide email dated 16.03.2023. This Court is of the view that the interest of the petitioner as well as the Department would be satisfied if the impugned orders are set aside and the Department is directed to conduct a fresh enquiry affording an opportunity to the writ petitioner. Accordingly, the impugned orders are set aside and the respondent is directed to consider the details furnished by the petitioner on 16.03.2023 and if required call upon the petitioner to give full and complete details as may be required by the Department to fully and finally adjudicate the matter. This exercise shall be completed within a period of six weeks from the date of receipt of a copy of this order and the writ petitioner shall extend its fullest cooperation to the Department. These writ petitions have been filed seeking issuance of a Writ of Certiorari to call for the records on the file of the respondent and quash the impugned orders passed under Section 201 of the Income Tax Act, 1961 being illegal and not in accordance with law.

Summary

Issues involved:
The judgment involves a writ petition seeking the quashing of orders passed under Section 201 of the Income Tax Act, 1961 for being illegal and not in accordance with the law.

Details of the judgment:

Issue 1: Compliance with TDS requirements
The petitioner, a Cooperative Society, was assessed to tax and was questioned for not deducting TDS under Section 194A for interest payments exceeding Rs.10,000. The petitioner submitted the required details post a survey, but the respondent claimed the details were incomplete. The Court noted discrepancies in the respondent's argument and directed a fresh inquiry, allowing the petitioner to provide complete details within six weeks for a final adjudication.

Issue 2: Adequacy of details
The respondent argued that the details provided by the petitioner were inadequate for passing suitable orders. Despite the petitioner admitting incomplete details initially, the Court observed that the Department had acknowledged receiving interest payment details above and below Rs.10,000. The Court set aside the impugned orders and instructed the Department to conduct a fresh inquiry, ensuring the petitioner's full cooperation for a comprehensive resolution.

This judgment highlights the importance of thorough compliance with TDS requirements and the need for complete and accurate information for tax assessments under the Income Tax Act, 1961.