TaxTMI 
TaxTMI 
2014 (5) TMI 482
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....ted 18 March 2014 issued under section 142(1) calling upon the petitioner to show cause as to why a disallowance should not be made under section 40(a)(ia) of the Income Tax Act of an amount of Rs.49.40 crores for non deduction of tax at source under section 194-H. The petition is principally based on a judgment of a Division Bench of this Court in the case of the assessee itself : Jagran Prakashan Limited Vs. Deputy Commissioner of Income Tax (TDS)1. In the judgment of the Division Bench, it has been held that (i) there is no relationship of principal and agent between the petitioner and the advertising agencies; (ii) the advertising agencies do not render any service to the petitioner; (iii) 15% trade discount allowed by the petitioner t....
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....before the Supreme Court on 31 March 2014. In view of this admitted position, the petition was directed to be listed on 15 April 2014. In the meantime, since the time for completing the assessment was to expire on 31 March 2014, this Court, in order to obviate the bar of limitation, considered it appropriate to grant a stay to protect the interest of the assessee as well as the Revenue. In the circumstances, there was a stay of further proceedings in pursuance of the re-assessment notices dated 30 March 2012 and 18 March 2014. On 18 April 2014, this Court adjourned the hearing of the petition since the Court was apprised of the fact that the hearing of the aforesaid special leave petition before the Supreme Court was posted for 5 May 2014.....
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....ng regard to the law laid down by the Division Bench in the judgment noted above in the case of the assessee itself, against which a special leave petition has been dismissed by the Supreme Court, the Assessing Officer would have no reason to believe that income has escaped assessment on the ground that there is a disallowance liable to be made under section 40(a)(ia) for non deduction of the tax at source under section 194-H. The notice of the re-assessment under section 148 as well as the notice under section 142(1) would, accordingly, have to be quashed and set aside. The order of re-assessment was passed by the Assessing Officer on 31 March 2014 despite the order of stay that was granted by this Court on 27 March 2014. Since the order o....