Hon'ble Prakash Krishna,J.
Supplementary affidavit filed today is taken on record.
On a mention made by learned counsel for the petitioner, the matter is taken up in the presence of learned counsel appearing for the department.
By means of this petition, the petitioner has prayed for quashing the notice dated 19.3.2012 and 21.3.2012 issued by the respondent ( Annexure No. 4 and 5 to the writ petition) by which the petitioner has been asked to furnish certain informations as required.
Learned counsel for the petitioner challenging the notice contended that notices do not furnish any jurisdiction to the authority to proceed under section 201 of the Income Tax Act. as no TDS. was deductible on 15% trade discount.
He submits that the trade discount can not be treated as commission so as to liable for any deduction. He has placed reliance on the decision of Delhi High Court passed in the case of I.T.A. No. 1264 of 2007,Commissioner of Income Tax Vs. Living Media India Limited filed as Annexure No. 1 to the writ petition at page 33.
He has submitted that there is no material with the respondent to proceed under section 201 of the Income Tax Act.
Shri Govind Krishna, learned counsel appearing for the respondent submits that by notice impugned only informations have been called from the petitioner and there is no lack of jurisdiction in the authority to proceed. He further submits that at this state, the writ petiton be not entertained.
Learned counsel for the petitioner further placed reliance on the decision of Supreme Court passed in the case of Siemens Ltd. Vs. State of Maharashtra and others reported in (2006)12 Supreme Court Cases 33.
Be that as it may, in view of the fact that the assessment order is to be passed on or before 31.3.2012 as indicated in the notice, we are of the view that the petitoner may appear and submit necessary information as required and respondent may proceed to pass appropriate orders in accordance with law.
It shall be open for the parties to bring on record the order passed by the respondent.
Respondent is allowed three weeks' time to file counter affidavit.
List thereafter.
Order Date :- 26.3.2012 R