Constitutional validity and legality of section 194N of the Income Tax Act, 1961 challenged- Interim Stay Granted to the petitioner
Constitutional validity and legality of section 194N of the Income Tax Act, 1961 challenged- Interim Stay Granted to the petitioner
Constitutional validity and legality of section 194N of the Income Tax Act, 1961 is challenged in Tyroon Tea Company Ltd & Anr Vs Union of India & Ors before Calcutta High Court.
It may be noted that section 194N mandates the deduction of tax at source at the rate of 2% on cash withdrawals from, inter alia, a banking company exceeding Rs.1 crore in a financial year.
The Hon’ble court after listening to the arguments restrained the respondent authorities till 7/2/2022 or until further orders from collecting the tax at source and the court also clarified that the Benefit of this interim order will be confined only to the writ petitioners herein.
