Tax deducted at source claim led to stay of demand notices pending further directions

Interim protection was granted against demand notices for the relevant assessment years where the petitioners claimed that salary tax had already been deducted at source by their employer. The Court noted that a similar issue had been considered in an earlier writ petition and allowed the petitioners to place additional material on record to demonstrate deduction of tax at source for the relevant period. The operation of the demand notices was stayed until further directions of the Court.

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Issues: Whether the operation of the impugned demand notices should remain stayed pending further proceedings, in view of the petitioners' claim that tax had already been deducted at source by their employer.

Analysis: The petitioners sought interim protection against demand notices issued for the relevant assessment years on the footing that salary tax had already been deducted at source by the employer. The Court noticed that a similar issue had already been dealt with in an earlier writ petition and also permitted the petitioners to place additional material on record to show deduction of tax at source for the relevant period.

Outcome: The operation of the demand notices was stayed till further directions of the Court.

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