TDS Notice Invalidated: Lower Deduction Certificate Voids Default Claim

Conner Institute of Health Care and Research Center (P.) Ltd. Vs DCIT (Delhi High Court) Delhi High Court has quashed a notice issued under Section 201 of the Income Tax Act, 1961, to Conner Institute of Health Care and Research Center (P.) Ltd. The court found that the basis for initiating proceedings for failure to deduct or pay Tax Deducted at Source (TDS) was invalid, as the payee had obtained a certificate for deduction of tax at a lower rate. This ruling emphasizes that an allegation of TDS default must be substantiated and cannot proceed when a valid lower deduction certificate exists. ...