TDS Deduction on Unsecured Loan: Calcutta HC Confirms Order u/s 148A(d) of Income Tax Act [Read Order]

The Calcutta High Court confirmed an order under Section 148A(d) of the Income Tax Act, 1961 in the matter relating to Tax Deduction at Source (TDS) deduction on unsecured loan.

Pursuant to the earlier order of the Calcutta High Court, Prithu Dudhoria, advocate who appeared 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, Safex Complex Private Limited, has taken loan on account of unsecured loan and the TDS was deducted on the said loan relating to financial year 2018- 19/assessment year 2019-20.

Section 148A of the Income Tax Act, 1961 is a provision that allows the Assessing Officer (AO) to issue a notice to a person who has failed to furnish a return of income, report or statement of financial transaction. This section was introduced by the Finance Act, 2021, and is applicable from 1st April 2021.

After considering reply/objections of the taxpayer and after further inquiry he is required to pass an order under Section 148A(d) of the Income Tax Act holding a case for reassessment of certain definite sum escaping assessment.

A Single Bench of Justice Md Nizamuddin observed that “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”.

The Court further went on to note that the 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 Income Tax Act.

Prithu Dudhoria, appeared for the Income Tax Authority and Subash Agarwal, advocate, appeared for the petitioner.

To Read the full text of the Order CLICK HERE

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