Failure to Deduct TDS due to Lack of Awareness: Supreme Court Upholds Allahabad HC Order, Dismisses SLP [Read Order]

The Supreme Court of India has upheld the judgment of the High Court of Judicature at Allahabad, Lucknow Bench, regarding the failure to deduct Tax Deducted at Source (TDS).

The case involved NARENDRA DEV UNIVERSITY OF AGRICULTURE AND TECHNOLOGY, FAIZABAD as the petitioner and the Commissioner of Commercial Tax, U.P. Lucknow, as the respondent.

The apex court dismissed the Special Leave Petitions (SLPs) filed by the petitioner challenging the final judgment and order passed by the High Court. The judgment emphasised that no case for interference was found within the jurisdiction under Article 136 of the Constitution of India.

The core issue revolved around the failure to deduct TDS and the court concluded that there was no substantial ground for intervention. Mr. P.N. Mishra and Mr. Bhuwan Raj represented the petitioner.

The petitions highlighted the legal complexities surrounding the deduction of TDS and sought the court’s intervention based on the constitutional provision of Article 136. However, the apex court determined that the facts presented did not warrant such interference.

The dismissal of the SLPs by the Supreme Court emphasises the position that an awareness gap regarding TDS obligations does not constitute a valid ground for interference. It also clarified that a lack of awareness or understanding of tax deduction requirements is not a valid excuse for non-compliance. In conclusion, the two-judge bench comprising Justice Abhay S. Oka and Justice Ujjal Bhuyan of the Supreme Court upheld the Allahabad High Court Order and dismissed the Special Leave Petitions filed by the petitioner

To Read the full text of the Order CLICK HERE

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