Income Tax Officer (TDS) vs. Sashwat Energy Private Limited

Parties Involved

Facts Summary

The case pertains to the non-compliance of TDS provisions by Sashwat Energy Private Limited for the Assessment Year 2021-22. The assessee company, which undertakes Engineering Procurement and Construction (EPC) contracts for solar power plants and other electrical and engineering works, failed to deposit the TDS deducted on interest paid to M/s. Shapoorji Pallonji and Co Pvt. Ltd. The assessee had deducted TDS of Rs. 1,48,96,640/- on interest of Rs.32,38,40,000/- paid to M/s. Shapoorji Pallonji and Co Pvt. Ltd. @4.60% based on LDC obtained by the deductee. However, the assessee did not deposit the deducted TDS amount in the Government Treasury. The assessee argued that it was unable to pay the interest due to financial constraints and that the deductee had already offered the interest income to tax and paid the due taxes.…

Legal Issues

• 1. Whether the assessee is a defaulter for non-deposit of TDS when it deducted TDS but did not deposit it.
• 2. Whether the assessee is a defaulter as the payment of interest has not been made to the deductee.
• 3. Whether the assessee is a defaulter as the deductee has offered the interest income for tax and paid the due taxes.
• 4. Whether the AO erred in not appreciating the findings regarding assessee's default of non-deposit of TDS.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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