9911796707
TMI Blog2024 (5) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of 1963. Instead, the Appellant has sought to raise a dispute of fact with respect to the issue whether the transaction of Rs. 13,96,886/- dated 30th September, 2015 reflected in the TDS certificate pertains to the transaction emanating from the Deed of Cancellation or not. Appellant has sought to contend that the said payment of Rs. 13,96,886/- pertains to a separate transaction between the parties. We are unable to accept this contention of the Appellant as it has no basis in the pleadings of the Appellant in the application seeking leave to defend. Since no such plea was raised before the learned Single Judge, the conclusion drawn by the learned Single Judge in the impugned judgment on the basis of the TDS certificate is in consonance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the suit filed by the Respondent. 3. He states that the learned Single Judge relied upon the Form-16 A (TDS Traces) dated 26th October, 2015 ( TDS certificate ) to erroneously conclude that the payment of TDS reflected therein pertains to the transaction in question. He states that the said certificate reflects five independent deposits towards interest by the Appellant in favour of the Respondent, however, the learned Single Judge has failed to appreciate that this could be with respect to any of the plethora of transactions between the parties herein. He states that the Appellant has never conceded that any of the five transactions reflected in this certificate pertained to the transaction arising from the Deed of Cancellation dated 20t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of the Deed of Cancellation, the Appellant was obligated to liquidate its entire liability towards the Respondent on or before 31st December, 2013. It is further stated that the time for repayment was extended till 31st March, 2015 at the request of the Appellant. It is stated that the Appellant was regularly deducting TDS at the rate of 10% on the interest accrued and depositing the same to the credit of the Government. It is stated that the Appellant paid a sum of Rs. 1 crore on 27th March, 2015 as an on account payment. It is stated that the Appellant lastly deposited TDS amount of Rs. 13,96,886/- on 30th September, 2015 but did not make payment towards the interest; and in support of this transaction relied upon the TDS certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, therefore, would extend the period of limitation. 31. Section 19 of the Limitation Act, 1963 reads as under: 19. Effect of payment on account of debt or of interest on legacy. Where payment on account of a debt or of interest on a legacy is made before the expiration of the prescribed period by the person liable to pay the debt or legacy or by his agent duly authorised in this behalf, a fresh period of limitation shall be computed from the time when the payment was made: Provided that, save in the case of payment of interest made before the 1st day of January, 1928, an acknowledgment of the payment appears in the handwriting of, or in a writing signed by, the person making the payment. 32. To attract the above provision and take benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the plaintiff. The said payment being made against the Cancellation Deed, which is not denied by the defendant, would in terms of Section 19 of the Limitation Act, extend the period of limitation. The issue of the TDS Certificate by the defendant shall satisfy the second condition of Section 19 of the Limitation Act as culled out above. 37. In M/s Utility Powertech Limited (supra), the Court held that the deduction of TDS is not an admission of liability. The same was the ratio in Actal (supra) and in S.P. Brothers (supra). The said judgments would, however, have no application to the facts of the present case. Though deposit of TDS may not act as an acknowledgment of debt by the defendant, it being a payment made by the defendant on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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