PB.ST.FED.OF CO-OP.HOUSE BUILD.SOCIETY CHD vs. COMMISSIONER OF INCOME TAX & ANOR.

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CWP/12374/2000HC Punjab & HaryanaPHHC01017287200024 February 2020Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE AVNEESH JHINGAN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the writ petition had been rendered infructuous. The judgment notes that due to an interim order from the Court, amounts deducted towards interest had been credited towards loan repayment. The Revenue stated that it had not raised a demand for interest tax from respondent No. 2, who was responsible for payment, and that the matter concerning respondent No. 2 was time-barred. Consequently, the Court disposed of the writ petition as infructuous, without delving into the merits of the interest tax demand itself. No specific findings on the legality of the interest tax demand were recorded, as the petition was disposed of on procedural grounds.

What were the facts?

The petitioner, Punjab State Federation of Cooperative House Building Society, challenged the action of respondent No. 2 in demanding interest tax on loan repayments made by the petitioner to its members. During the period in question, an interim order from the High Court directed that amounts deducted towards interest be credited towards loan repayment. The Revenue contended that it had not raised a demand for interest tax from respondent No. 2, who was responsible for payment. Furthermore, the matter concerning respondent No. 2 was stated to be time-barred.

What were the issues?

1. Whether the demand for interest tax on loan repayments made by the petitioner to its members is legally sustainable, considering the interim order of the High Court directing such amounts to be credited towards loan repayment? (Question of law) Assessee's Contention: The petitioner implicitly argues that the demand is unsustainable due to the interim order. The Revenue's Contention: The Revenue argues that it had not raised a demand for interest tax from respondent No. 2, and the matter is time-barred. No specific legal provisions were cited by either party in the judgment.

AI-generated summary — verify with the full judgment below

IN THE PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH CWP No. 12374 of 2000 Date of Decision: February 24, 2020 Punjab State Federation of Cooperative House Building Society

…Petitioner Versus Commissioner of Income Tax and another ..Respondents CORAM: HON'BLE MR. JUSTICE AJAY TEWARI

HON'BLE MR. JUSTICE AVNEESH JHINGAN

Present: Ms. Nimrata Shergill, Advocate for the petitioner. Ms. Urvashi Dhugga, Advocate for respondent No.1. Mr. Anuj Raura, Advocate for respondent No.2. *** AJAY TEWARI, J. (Oral) 1. By this petition, the petitioner has challenged the action of respondent No.2 in demanding interest tax on the repayment towards loan, which had been made by the petitioner to members of federation. 2. It has transpired that during this time due to interim order of this Court, the amount which was deducted towards interest had been credited towards repayment of the loan on its part. The Revenue has raised that it has never raised the demand of interest tax from respondent No.2, who otherwise was responsible to pay the same. In any case, the matter even qua respondent No.2 is now time barred. ATUL KUMAR TRIPATHI 2020.03.04 10:02 I attest to the accuracy and integrity of this document

CWP No. 12374 of 2000 -2- 3. Consequently, the writ petition has been rendered infructuous and is disposed of accordingly. 4. Since the main case has been decided, the pending application, if any, also stands disposed of. (AJAY TEWARI) (AJAY TEWARI) (AJAY TEWARI) (AJAY TEWARI)

JUDGE JUDGE JUDGE JUDGE (AVNEESH JHINGAN) (AVNEESH JHINGAN) (AVNEESH JHINGAN) (AVNEESH JHINGAN) JUDGE JUDGE JUDGE JUDGE 24.02.2020 24.02.2020 24.02.2020 24.02.2020 Atul Atul Atul Atul Whether speaking/ reasoned Whether speaking/ reasoned Whether speaking/ reasoned Whether speaking/ reasoned - Yes/No Yes/No Yes/No Yes/No Whether reportable Whether reportable Whether reportable Whether reportable - Yes/No Yes/No Yes/No Yes/No ATUL KUMAR TRIPATHI 2020.03.04 10:02 I attest to the accuracy and integrity of this document

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