2025 (11) TMI 48

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....d Notice issued pursuant thereto under Section 156. The impugned Orders and the Demand Notice are both dated 31st March 2025. Along with the impugned Order and the Demand Notice, a Penalty Notice under Section 274 read with Section 271C dated 22nd April 2025, and the Order emanating therefrom dated 30th September 2025, is also impugned in the present Writ Petition. 2. By the impugned Order, the Petitioner has been held as an Assessee in default because the Petitioner has not deducted TDS under Section 194LA for issuing TDR in lieu of compensation for lands acquired for public purposes from the original owners as contemplated under Section 126 of the MRTP Act, 1966. 3. According to the Petitioner, Section 194LA of the IT Act deals with....

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....ever, being the amount (in respect of a single transaction) exceeding ten thousand rupees shall, at the time of payment thereof, deduct income tax thereon at the rates in force. However, the proviso to Section 194B stipulates that in a case where winnings are wholly in kind or partly in cash and partly in kind, but the part in cash is not sufficient to meet the liability of deduction of tax in respect of the whole of the winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the winnings. According to the Petitioner, this provision is conspicuously absent in Section 194LA. It is in these circumstances that the Petitioner contends that it could never have been declared as....