https://www.taxtmi.com/caselaws?id=752487 An employer cannot retain amounts deducted as TDS from a contractor's running bills merely to secure its own disputed liability with the Income Tax Department. Once tax is deducted, the statutory scheme requires deposit and issuance of a TDS certificate so the contractor can claim credit; withholding the sum outside that scheme is arbitrary and amounts to unjust enrichment. Contract clauses did not authorise keeping the deducted amount as a contingent reserve for an uncertain future demand. The court held the retention illegal and directed release of the amount with interest and costs, finding the employer's stand lacked bona fides. en-us Mon, 08 Apr 2024 00:00:00 +0530 Sat, 11 May 2024 16:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752487 An employer cannot retain amounts deducted as TDS from a contractor's running bills merely to secure its own disputed liability with the Income Tax Department. Once tax is deducted, the statutory scheme requires deposit and issuance of a TDS certificate so the contractor can claim credit; withholding the sum outside that scheme is arbitrary and amounts to unjust enrichment. Contract clauses did not authorise keeping the deducted amount as a contingent reserve for an uncertain future demand. The court held the retention illegal and directed release of the amount with interest and costs, finding the employer's stand lacked bona fides. Case-Laws Income Tax Mon, 08 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752487