Infrastructure Development Authority vs The Assistant Commissioner Of Income ...
2024 Latest Caselaw 5264 Patna

Patna High Court

Infrastructure Development Authority vs The Assistant Commissioner Of Income ... on 6 August, 2024

Bench: Chief Justice, Partha Sarthy

     IN THE HIGH COURT OF JUDICATURE AT PATNA
               Civil Writ Jurisdiction Case No.9716 of 2024
======================================================
Infrastructure Development Authority, a Government of Bihar undertaking
constituted under the Bihar State Infrastructure Development Enabling Act,
2006 having its office at 1st Floor, Udyog Bhawan, East Gandhi Maidan,
Patna-800004 through its Authorized Signatory, Sanjeev Kumar, son of N. K.
Prasad, aged about 54 years, Male, resident of R.N. Villa Apartment, M.G.
Nagar, Kankarbagh, P.O. Bahadurpur Housing Colony, P.S.- Agam Kuan,
Patna - 800026

                                                         ... ... Petitioner/s
                                  Versus
The Assistant Commissioner of Income Tax, TDS Circle, Patna.

                                          ... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s   :      Mr. Ajay Kumar Rastogi, Sr. Advocate
                              Ms. Smriti Singh, Advocate
For the Respondent/s   :      Mrs. Archana Sinha, Sr. SC, Income Tax Dept.
======================================================
CORAM: HONOURABLE THE CHIEF JUSTICE
        and
        HONOURABLE MR. JUSTICE PARTHA SARTHY
ORAL JUDGMENT

(Per: HONOURABLE THE CHIEF JUSTICE)

Date : 06-08-2024

The writ petition is filed against Annexures-P/1 and

P/2 orders, which resulted in rejection of applications filed

under Section 197 of the Income Tax Act, 1961. The orders are

dated 14.05.2023 and 30.01.2024 respectively and relate to the

same issue.

2. The petitioner had sought for deduction of TDS in

the interest income earned from banks at NIL, since the

petitioner's contention was that the total income justifies such

benefit under Section 197. The orders impugned only found that

there was a tax demand with respect to the Assessment Year Patna High Court CWJC No.9716 of 2024 dt.06-08-2024

2018-19, which is pending and hence the deduction at the lower

rate/NIL rate is not possible.

3. Learned Senior Counsel appearing for the petitioner

would contend that the tax demand for the year 2018-19 has

been stayed by the Principal Commissioner of Income Tax till

the First Appeal is disposed of.

4. De hors the stay ordered; pending First Appeal, we

see that the provision under Section 197 only clothes the

Assessing Officer with the power to satisfy himself that the

total income of the recipient justifies the deduction of Income

Tax at any lower rates or at a NIL rate. Hence, a demand

pending against the assessee would not clothe the Assessing

Officer with the power to summarily reject an application under

Section 197. The satisfaction to be recorded under Section 197

is clearly with respect to the total income of the recipient for the

subject assessment year, where the deduction is claimed at a

NIL rate for the interest income earned from the fixed deposits

in banks.

5. We set aside Annexures P/1 and P/2 orders for

having decided the issue on extraneous considerations. The

application will stand restored before the Assessing Officer and

the same will be considered in accordance with law, as Patna High Court CWJC No.9716 of 2024 dt.06-08-2024

interpreted by us hereinabove.

6. The writ petition stands disposed of.

(K. Vinod Chandran, CJ)

(Partha Sarthy, J) P.K.P./-

AFR/NAFR
CAV DATE
Uploading Date          07.08.2024.
Transmission Date