Surya Construction Vs Union of India And 6 Ors (Gauhati High Court)
Gauhati High Court held that interest under section 244A of the Income Tax Act is payable in cases where department has delayed the payment of refunds. Since in the present case there was demand of TDS which was deposited in incorrect PAN interest provisions are not applicable.
Facts- The petitioner is engaged in the business of construction and development works. The petitioner performed various contracts under the respondent No. 2. In respect to those works, though the petitioner had received the contractual amount after deduction of tax. However, in the year 2019, when notices were issued to the petitioner, it came to light that there was no deposit being made by the respondent No. 2 of an amount of Rs. 71,85,065/- which was deducted from the bills of the petitioner. It also came to light that the PAN number of the petitioner was wrongly written.
Petitioner being aggrieved, by the inaction on the part of the respondent No. 2 in not taking due steps thereupon to properly deposit the deducted dues under the provisions of Section 194 C of the Income Tax Act, 1961 had, filed the instant writ petition seeking a writ in the nature of mandamus directing the respondent authorities to make necessary corrections in the record as regards the PAN number of the petitioner and also for depositing the amount of Rs.71,83,788/-. In addition to that the petitioner has also sought for interest in terms with Section 244 A of the Income Tax Act, 1961 from the respondent No. 2.
