2024 (3) TMI 1358 - HC - Income Tax

Power Company Retained TDS Without Deposit; Court Grants One Week to Decide on Refund Ahead of 2024 Hearing.

M/s Anvil Cables Private Limited through its constituted Attorney Mr. Shailendra Kumar Singh Versus The State of Jharkhand through the Principal Secretary, Department of Energy and Ors.

The HC of Jharkhand determined that JBVNL's retention of Rs. 2,90,32,000 for TDS deductions without depositing it with the Income Tax Department was ... Retention of amount purportedly on account of 2% TDS deductions from the bills raised by the petitioner - HELD THAT:- This Court has formed a prima-facie opinion that retention of amount purportedly on account of 2% TDS deductions from the bills raised by the petitioner is without any authority in law if the said amount is not deposited with the Income Tax Department. n the counter-affidavit, the stand taken by the JBVNL that the aforementioned amount has been retained as “Keep Back Amount” for meeting the future liability under the Income Tax Act also seems to be unjustified as once an amount is deducted towards TDS liability the same should have been deposited so that the assessee shall get the benefit thereof in his income tax return. As on the request of JBVNL, this matter is adjourned by one week to enable the JBVNL to take a conscious decision in the matter whether or not to deposit the amount of Rs. 2,90,32,000/- deducted from the running bills of the petitioner. For that purpose, this matter shall be posted on 21st March 2024. The High Court of Jharkhand found that the retention of Rs. 2,90,32,000 by JBVNL for TDS deductions without depositing it with the Income Tax Department is unjustified. The court adjourned the matter for one week to allow JBVNL to decide whether to deposit the amount. Next hearing scheduled for 21st March 2024.