| Case ID |
04357cd4-c5ee-4ba1-be3e-7339557ba5c7 |
| Body |
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| Case Number |
Writ Petitions Nos. 32477 to 32481 of 1995 |
| Decision Date |
Jun 16, 1999 |
| Hearing Date |
|
| Decision |
The Karnataka High Court upheld the validity of Section 201 of the Income Tax Act, 1961, which penalizes individuals and companies for failing to deduct or pay tax at source. The court noted that the provision allows for an opportunity for the assessee to present their case before being deemed in default, thus providing adequate safeguards against arbitrary penal actions. The decision emphasized that the Assessing Officer must be satisfied that the failure was without good and sufficient reason before imposing penalties. The court concluded that the provisions of Section 201 are not ultra vires the Constitution and affirmed the effectiveness of the law in ensuring compliance with tax obligations. |
| Summary |
This case revolves around the constitutional validity of Section 201 of the Indian Income Tax Act, 1961, which deals with the deduction of tax at source and the legal implications of failing to comply with this requirement. The petitioner, Mittal Steel Ltd., challenged the provisions arguing that they lacked adequate procedural safeguards. The Karnataka High Court, however, affirmed that sufficient guidelines exist within the law to protect the rights of assessees, thereby ensuring due process. The ruling underlines the importance of compliance with tax regulations and the mechanisms in place for accountability, reinforcing the legal framework governing income tax and the responsibilities of taxpayers. This case is significant for its implications on tax law and the responsibilities of companies in India, making it a critical reference point for future interpretations of tax compliance issues. |
| Court |
Karnataka High Court
|
| Entities Involved |
Mittal Steel Ltd.,
Assistant Commissioner of Income Tax
|
| Judges |
R. Jayasimha Babu,
Mrs. A. Subbulakshmy
|
| Lawyers |
Rajesh Chander Kumar,
M.V. Seshachala
|
| Petitioners |
Mittal Steel Ltd.
|
| Respondents |
Assistant Commissioner of Income Tax
|
| Citations |
2001 SLD 577,
2001 PTD 3566,
(1999) 240 ITR 707
|
| Other Citations |
Not available
|
| Laws Involved |
Indian Income Tax Act, 1961
|
| Sections |
201,
194C,
221,
246,
191
|