Tea Champagne Private Limited & Anr vs Central Board Of Direct Taxes & Anr. And on 19 May, 2023

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Calcutta High Court (Appellete Side)

Tea Champagne Private Limited & Anr vs Central Board Of Direct Taxes & Anr. And on 19 May, 2023

Bench: Md. Nizamuddin

19.05.2023
    PB
Sl. No.12.

             WPA 12432 of 2023


             Tea Champagne Private Limited & Anr.
                      Vs
             Central Board of Direct Taxes & Anr. and
             The Tea Board India & Ors.



             Mr. Amarta Ghosh,
             Ms. Rituparna De Ghosh.
                          ... For the Petitioner.
             Mr. Vipul Kundalia,
             Mr. Prithu Dudhoria.
                              .......for income tax department,



                   Heard learned advocates appearing for the

             parties.

                   By this writ petition petitioners have challenged

             the impugned order of the respondent CBDT dated

22nd December, 2022 holding petitioners liable to pay TDS. According to the petitioners who acts as a broker in teas auction are not liable to pay tax on tea sample drawn specifically for tea tasting and valuation, as ultra vires and unconstitutional in view of provision of Section 194R of the Income Tax Act, 1961 by contending that it is not they are not real beneficial and owner of the goods and they merely distributes sample of tea to the buyers on behalf of the sellers and as such those free sample cannot be treated as 2 perquisite in the hands of the petitioners/broker as an income.

Considering the facts and circumstances of the case and the issues involved in this writ petition I am of the considered view that the same are legal issues and deserve adjudication upon final hearing after calling for affidavits from the respondents and at this stage I am not inclined to interfere with the aforesaid impugned order of the CBDT.

However, liberty is granted to the petitioners, if occasion so arises to make an appropriate application during the pendency of the writ petition.

Let the respondents file affidavit-in-opposition by three weeks after summer vacation, petitioner to file reply thereto, if any, within two weeks thereafter.

List this matter for final hearing in the monthly list of August, 2023.

At the time of hearing, parties should be ready with the short written notes of arguments.

( Md. Nizamuddin, J.)

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Calcutta High Court (Appellete Side)