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Discussion > Income Tax > TDS >

Stay of proceedings -234e-? use of it in responding to dept.

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e.tds return filing

[ Scorecard : 1094]
Posted On 10 January 2014 at 09:24 Report Abuse

Yesterday there was news that the Kerala High Court stayed the proceedings against the notices U/s 234E.  The news is good to hear. BUT...

When I conveyed the same to one of my client who is worrying, He immediately asked me whether he can give a letter to the Dept.asking any action till the final judgement is delievered.

Please comment. + I want to know on what ground that school approached court.  

                            + How to obtain any reference of the court's order to give a letter to the Dept.



Total thanks : 1 times

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DALAL AND CO
C.A

[ Scorecard : 31]
Posted On 10 January 2014 at 12:05

order realting to sec 234E stay has been attached
 



Attached File : 758821 1269677 234e penalty stay.pdf downloaded 1006 times

Total thanks : 3 times




aca....
abc

[ Scorecard : 241]
Posted On 10 January 2014 at 13:44

what we have to do.... we have to just give the reference of the above judgement in the letter and submit to dept...am i right?




e.filer B.Com/ Hyderabad
e.tds return filing

[ Scorecard : 1094]
Posted On 10 January 2014 at 14:48

thank you Amit jee,

I will advice my clients to write a letter and attach a copy of the order.  




INDAZAR
Articled Assistant

[ Scorecard : 298]
Posted On 10 January 2014 at 17:09

NARATH LP SCHOOL, KANNUR KERALA IS THE CLIENT WHO GOT STAY ORDER.

THEY SUED 234E IS UNCONSTITUTIONAL.

2 MONTHS STAY HAS BEEN RECEIVED.




Mihir
Wealth Manager

[ Scorecard : 4646]
Posted On 10 January 2014 at 17:38

The assessee must have received no relief from CIT(appeal) toward this penalty and therefore he filed a writ petition. The court has order to put a stay on the IT proceedings against the assessee till such time the court finalises the disposal of the writ petition. 

Using this as a defence from penalty by any other assessee in default u/s 234E in any other case would be a mistake. This court proceedings is not a defence at all against penalty u/s 234E..




e.filer B.Com/ Hyderabad
e.tds return filing

[ Scorecard : 1094]
Posted On 10 January 2014 at 20:02

U mean to say the judgement that would come will be limited to that school Only.....not to all )out of Kerala (or in Indian Assessees)




suleman mehraz
Article assistant

[ Scorecard : 36]
Posted On 10 January 2014 at 20:18

Whether i should ask my client to pay of the demand so determined or not???



Nikhil Kaushik and Associates
Advisory Practice

[ Scorecard : 60578]
Posted On 11 January 2014 at 02:29

Dear friends,

I agree with Mihir.

1.  I would suggest that don't jump the gun.   The high court has not decided on the merit of the case yet...it is only a provisional stay and offers no relief in case the High court decides to rule in the favor of the revenue at a later stage

 

2.  more often than not, in such cases, rarely  a sectio held unconstitutional...

 

3.  yes, the assessee's in Kerala can request the AO's for keeping the demand at abeyance till the time the judgment is vacated.  However, assessees outside Kerala won't get any such relief unless their jurisdictional HC has also given a similar stay...

 




e.filer B.Com/ Hyderabad
e.tds return filing

[ Scorecard : 1094]
Posted On 11 January 2014 at 09:47

 

"  However, assessees outside Kerala won't get any such relief unless their jurisdictional HC has also given a similar stay..."

The above part of your comments DEMANDSwink experts approval from the relevant field.  

Because when a High court -not all high courts Or supreme court stayed deduction of TDS from the bank employees all banks in India had stopped deducting TDS from their employees. (of course some have deducted and parked in suspense A/c.)  How do professional CAs interpreted this while finalising the accounts of these banks. 
 

How will you interpret mr Nikhil Kaushik...



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