TDS u/s 194N - Constitutional validity of TDS on cash withdrawal...

TDS u/s 194N - Constitutional validity of TDS on cash withdrawal from Bank exceeding a certain threshold - The High Court upheld the constitutionality of Section 194N, stating that the provision's aim to reduce cash transactions and encourage a transparent and accountable economy is laudable. The Court emphasized that Section 194N, as a machinery provision, does not levy a new tax but provides a mechanism for tax collection on transactions that could potentially escape the tax net. - The Court clarified that the nature of withdrawals and their taxability is a matter for assessment and cannot be predetermined. It rejected the argument that the amounts withdrawn by the cooperative societies did not constitute taxable income.