https://www.taxtmi.com/caselaws?id=450434 The Madras HC rejected the constitutional challenge to Section 194N of the Income Tax Act, which mandates 2% TDS on cash withdrawals exceeding Rs.1 crore. The court held that Section 194N is a machinery provision under Chapter XVII B, not a charging provision, and does not create an independent tax liability. The provision applies from 01.09.2019 onwards. The court dismissed arguments that cooperative societies acting as business correspondents were excluded from Section 194N's scope. Orders under Section 201(1) for non-deduction were upheld, with directions to complete reassessment within three months while allowing credit for taxes already paid by societies. en-us Fri, 22 Dec 2023 00:00:00 +0530 Wed, 28 Aug 2024 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450434 The Madras HC rejected the constitutional challenge to Section 194N of the Income Tax Act, which mandates 2% TDS on cash withdrawals exceeding Rs.1 crore. The court held that Section 194N is a machinery provision under Chapter XVII B, not a charging provision, and does not create an independent tax liability. The provision applies from 01.09.2019 onwards. The court dismissed arguments that cooperative societies acting as business correspondents were excluded from Section 194N's scope. Orders under Section 201(1) for non-deduction were upheld, with directions to complete reassessment within three months while allowing credit for taxes already paid by societies. Case-Laws Income Tax Fri, 22 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450434