DHANASAKTHI CHITTIES AND LOANS (P) LTD AND ORS Vs. T A PAUL THANIKKAL CHAMMANATH HOUSE,P O KANJANY,THRISSUR
LAWS(KERCDRC)-2010-4-2
KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Decided on April 24,2010

Dhanasakthi Chitties And Loans (P) Ltd And Ors Appellant
VERSUS
T A Paul Thanikkal Chammanath House,P O Kanjany,Thrissur Respondents

JUDGEMENT

- (1.) THE above appeal is preferred against the order dated:10th October 2006 passed by CDRF, Thrissur in OP:522/04. The complaint therein was preferred by the respondent herein against the appellant/opposite party/Dhanasakthi Chitties and Loans (P) Ltd for getting refund of Rs.55,125/ - which was deducted by the appellant/opposite party towards the income tax to be deducted at source. The complainant claimed refund of the aforesaid amount with compensation and cost on the ground of deficiency of service on the part of the appellant/opposite party in deducting the said amount by way of income tax. The opposite party entered appearance and contended that it was bound to deduct income tax by virtue of section.194(B) of the Income Tax Act read with the explanation to Sec.2(24) of the Income Tax Act inserted by the Finance Act, 2001. Thus, the opposite party prayed for dismissal of the complaint with cost.
(2.) BEFORE the Forum below Exts.P1 and P2 documents were marked on the side of the complainant and Exts.R1 to R9 on the side of the opposite party. On an appreciation of the documentary evidence, the Forum below passed the impugned order dated:10th October 2006 directing the opposite party to refund Rs.55,125/ - to the complainant with interest at the rate of 12% per annum from 17/5/2002 till realization and cost of Rs.1000/ -. Aggrieved by the said order, the present appeal is filed by the opposite party therein.
(3.) WHEN this appeal was taken up for final hearing, there was no representation for the respondent/complainant. We heard the learned counsel for the appellant/opposite party. He submitted his arguments based on the grounds urged in the memorandum of the present appeal and argued for the position that the sum of Rs.55,125/ - was deducted by way of income tax and the said amount was remitted to the Government and that the complainant was also informed of the same from the very beginning. He also relied on Exts.R1 and R4 letter specifying the provision for deduction of income tax and sales tax in the event of winning of the bonus prize. He also relied on the judgment rendered by this commission in A:688/03 and submitted that the impugned order passed by the Forum below is liable to be quashed. The points that arise for consideration are: - 1. Whether there was any deficiency of service on the part of the appellant/opposite party in deducting the income tax amount of Rs.55,125/ - at source on the strength of Sec.194 B of the Income Tax Act read with the explanation to Sec.2(24) of the Income Tax Act? 2. Whether the Forum below can be justified in directing the opposite party to refund the income tax deducted at source with interest and cost? 3. Is there any sustainable ground to interfere with the order passed by the Forum below?;


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