2021 (7) TMI 468

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..... Heard Mr. J.P. Khaitan, learned senior advocate appearing for the petitioner and learned Additional Solicitor General for the respondents/U.O.I. In this writ petition, petitioner has challenged the constitutional validity and legality of Section 194N of the Income Tax Act, 1961 which mandates the deduction of tax at source at the rate of 2% on cash withdrawals from, inter alia, a banking company .....

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..... rounds as appears from the grounds of the writ petition which according to me have some substance and requires consideration for final adjudication by this Court. Petitioner has also relied on several unreported decisions of the Hon'ble Kerala High Court involving the same issue and one of which is order dated 13th August, 2020 passed in Kanan Devan Hills Plantations Company Pvt. Ltd Versus Union .....

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..... onsidering these facts, I am inclined to grant an interim order restraining the respondents authorities concerned from deducting tax on source on the basis of the aforesaid provisions of Section 194N till 30th September, 2021. Respondents are directed to file affidavit-in-opposition within four weeks from date. Petitioner to file reply thereto, if any, within two weeks thereafter. Matter to appe .....

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