2022 (10) TMI 1256 - HC - Income Tax

Review petition of the Judgment 2021 (4) TMI 276 - KARNATAKA HIGH COURT - Assessee in default u/s 201(1) - non deduction of tax at source from the amount when such amount had not accrued to payee or any person at all - HELD THAT - We have perused the petition as well as the Judgment passed by Kartanaka HC wherein held the provisions were created during the course of the year and reversal of entry was also made in the same accounting year. AO erred in law in holding that assessee should have deducted tax as per the rate applicable along with interest. The authorities under the Act ought to have appreciated that in the absence of any income accruing to anyone under the Act, the liability to deduct TDS on the assessee could not have been fastened and consequently, the proceeding u/s 201 and 201(1A) could not have been initiated.The substantial question of law is answered in favour of the assessee. There is no infirmity nor any apparent error on the face of the record to interfere with the aforesaid Judgment.

Summary

The High Court of Karnataka dismissed the petition for review of the Judgment dated 24.03.2021 in I.T.A. No. 245/2018 as there was no infirmity or apparent error in the record. The petitioner was represented by Sri. E.I. Sanmathi, Advocate.