Directed CBDT to dispose the representation w.r.t. TDS on e-commerce transactions within 6 months

Last updated: 22 September 2021

Court :
Calcutta High Court

Brief :
In MJunction Services Ltd. and Anr. v. Union of India and Ors. [WPO/441/2021 dated August 25, 2021], MJunction Services Ltd. ("the Petitioner") filed a writ petition being aggrieved by the new provision of Section 194 - O of the Income Tax Act, 1961 ("the IT Act") that took effect from October 1, 2020.

Citation :
WPO/441/2021 dated August 25, 2021

In MJunction Services Ltd. and Anr. v. Union of India and Ors. [WPO/441/2021 dated August 25, 2021], MJunction Services Ltd. ("the Petitioner") filed a writ petition being aggrieved by the new provision of Section 194 - O of the Income Tax Act, 1961 ("the IT Act") that took effect from October 1, 2020.

The Petitioner was aggrieved by the fact that Section 194 - O of the IT Act cast an obligation on the part of the Petitioner to deduct and deposit Tax Deducted at Source ("TDS") on account sale consideration received from e-acommerce participant, customers and buyers. The Petitioner sought relief of declaration on the same.

The Petitioner is also aggrieved by inaction on the part of the Central Board of Direct Taxes ("CBDT") ("the Respondent No. 8") and sitting over and not disposing the representations of the Petitioner for redressal of its grievances in this regard, made under Section 194 - O (4) of the IT Act.

In the case, the Respondents were unable to justify the inaction on the part of the Respondent No. 8 which is causing great difficulties to the Petitioner in carrying on its business.

Taking perusal of all the facts and evidences, the Honorable Calcutta High Court directed Respondent No. 8 to dispose of the aforementioned representations made by the Petitioner within a period of 6 months. Furthermore, the Court added that the Petitioner shall go on depositing the TDS in question but there shall be no penalty imposed on him by Respondent No. 8. The Court, therefore, granted an interim relief to the Petitioner with a liberty to seek appropriate relief in the said case.