Imposing liability for non-deduction of TDS hearing is not tenable: Chhattisgarh HC

Ravi Shree Narayan Transport Vs ACIT (Chhattisgarh High Court) Chhattisgarh High Court held that imposing liability u/s. 201(1) of the Income Tax Act for failure to deduct TDS without providing opportunity of being heard is not sustainable in law. Accordingly, matter remitted back for fresh consideration. Facts- The appellant is a partnership firm engaged in transportation business. The respondent-revenue authority has conducted verification of TDS (Tax Deducted at Source) compliance vis-a-vis deduction of TDS on various expenses and found that the appellant had failed to deduct TDS on aggrega...