TDS treatment under Section 89 considered, with authorities directed to examine permissible spread-over relief for income-tax liability.

Amounts deposited as tax deducted at source were directed to be examined for relief under Section 89 of the Income-tax Act, 1961, with the authorities required to consider whether the applicant was entitled to spread-over relief for the income-tax liability. The Income Tax authorities were directed to assess the claim in accordance with law, and the respondent bank was to cooperate in making the necessary calculations. The application was disposed of with directions to consider and grant the permissible relief relating to TDS treatment under Section 89.

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Issues: Treatment of amounts deposited as Tax Deducted at Source and entitlement to relief under Section 89 of the Income-tax Act, 1961 for spread-over of income tax liability.

Analysis: The application concerned clarification of an earlier order and limited relief regarding the manner in which TDS-related amounts were to be treated. Directions were issued to the Income Tax authorities to consider the applicant's entitlement under Section 89 of the Income-tax Act, 1961, and to grant relief to the extent permissible in accordance with law, with cooperation from the respondent bank for the necessary calculations.

Conclusion: The application was disposed of with directions to consider and grant the permissible relief relating to TDS treatment under Section 89.

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