Cwjc/9716/2024 Of Infrastructure Development Authority v. The Assistant Commissioner Of Income Tax, Tds Circle, Patna

IN THE HIGH COURT OF JUDICATURE AT PATNACivil Writ Jurisdiction Case No.9716 of 2024 ====================================================== Infrastructure Development Authority, a Government of Bihar undertakingconstituted 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. CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHYORAL JUDGMENT(Per: HONOURABLE THE CHIEF JUSTICE) Date : 06-08-2024 The writ petition is filed against Annexures-P/1 andP/2 orders, which resulted in rejection of applications filedunder Section 197 of the Income Tax Act, 1961. The orders aredated 14.05.2023 and 30.01.2024 respectively and relate to thesame issue. 2. The petitioner had sought for deduction of TDS inthe interest income earned from banks at NIL, since thepetitioner’s contention was that the total income justifies suchbenefit under Section 197. The orders impugned only found thatthere was a tax demand with respect to the Assessment Year 2018-19, which is pending and hence the deduction at the lowerrate/NIL rate is not possible. 3. Learned Senior Counsel appearing for the petitionerwould contend that the tax demand for the year 2018-19 hasbeen stayed by the Principal Commissioner of Income Tax tillthe First Appeal is disposed of. 4. De hors the stay ordered; pending First Appeal, wesee that the provision under Section 197 only clothes theAssessing Officer with the power to satisfy himself that thetotal income of the recipient justifies the deduction of IncomeTax at any lower rates or at a NIL rate. Hence, a demandpending against the assessee would not clothe the AssessingOfficer with the power to summarily reject an application underSection 197. The satisfaction to be recorded under Section 197is clearly with respect to the total income of the recipient for thesubject assessment year, where the deduction is claimed at aNIL rate for the interest income earned from the fixed depositsin banks. 5. We set aside Annexures P/1 and P/2 orders forhaving decided the issue on extraneous considerations. Theapplication will stand restored before the Assessing Officer andthe same will be considered in accordance with law, as interpreted by us hereinabove. 6. The writ petition stands disposed of. (K. Vinod Chandran, CJ) (Partha Sarthy, J) P.K.P./- AFR/NAFRCAV DATEUploading Date07.08.2024.Transmission Date