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TDS Deduction & Tax Invoices Prove Consultancy Services, Calcutta HC Allows ₹60 Lakh Claim

Case Law Details

TaxGuru Citation
2026 taxguru.in 9165
Case Name
Pulinat Ettan Thomas Vs Finorchem Limited (Calcutta High Court)
Date of Judgement/Order
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Pulinat Ettan Thomas Vs Finorchem Limited (Calcutta High Court)

The Calcutta High Court heard an appeal against the judgment dated 01.08.2025 and consequential decree dated 17.11.2025 passed in CS-COM No. 175 of 2024, by which the Trial Court directed the defendant to pay ₹55,47,422 with interest at 8% per annum from the date of institution of the suit, with an additional 2% interest in case of default after three months, and dismissed the defendant’s counterclaim.

The appellant challenged the findings that the agreement dated 02.08.2019 constituted a contingent contract under Sections 31 and 32 of the Indian Contract Act, 1872, contending that there was no uncertain future event, that the final agreement did not specify the names or number of experts, that the Trial Court wrongly relied on a draft agreement despite Clause 12 superseding prior drafts, and that it incorrectly held the agreement required seven experts to join simultaneously. The appellant also argued that evidence of services rendered, WhatsApp communications, emails, tax invoices, and the respondent’s conduct, including payment, TDS deduction and issuance of tax invoices, established commencement of the contractual relationship. The appellant further contended that the Trial Court wrongly dismissed the counterclaim for balance appointment payment, monthly consultancy fees, reimbursement of expenses, severance fee and interest, and failed to consider Sections 70 and 72 of the Contract Act.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,669

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