The Calcutta High Court recently ruled in the case of Safex Complex Private Limited Vs Union of India, concerning the issue of TDS deduction on an unsecured loan for the financial year 2018-19/assessment year 2019-20. The petitioner sought to challenge the order under Section 148A(d) of the Income Tax Act, 1961, but the Court upheld the impugned order.
The central issue revolved around a transaction between the petitioner and M/s Quetzal Exim Private Limited, where the petitioner had taken a loan categorized as an unsecured loan. The Income Tax Authority deducted TDS on this loan.
After considering the presented facts, circumstances, and evidence, including documents produced by the respondent’s counsel, the Court decided not to interfere with the order under Section 148A(d) of the Act. However, it was emphasized that the dismissal of the writ petition would not restrict the petitioner from raising all the concerned points before the assessing officer.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court: Heard learned advocates appearing for the parties.
Pursuant to the earlier order of this Court dated 13th July, 2023, Mr. Dudhoria, learned advocate appearing for the respondent Income Tax Authority concerned has produced the relevant documents to establish that the petitioner had entered into transaction with M/s. Quetzal Exim Private Limited from which petitioner has taken loan on account of unsecured loan and the TDS was deducted on the said loan relating to financial year 20 18- 19/assessment year 2019-20.
Considering the facts and circumstances of this case and the records produced by the learned advocate appearing for the respondents, I am not inclined to interfere with the impugned order under Section 148A(d) of the Income Tax Act, 1961 and accordingly this writ petition being WPO 1288 of 2023 is dismissed.
However, dismissal of this writ petition will not be a bar on the part of the petitioner to raise all the points before the assessing officer concerned which has been raised in this writ petition subsequent to the order passed under Section 148A(d) of the Act.
Mr. Dudhoria has handed over instruction along with xerox copies of all the relevant documents to Mr. Agarwal, learned advocate appearing for the petitioner.