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2012 (3) TMI 383 - GAUHATI HIGH COURTLegality of deduction of tax at source out of the payments to be made to the petitioner-dealers for the works executed by them questioned - Held that:- Section 47 provides for deduction at the rate of 12.5 per cent of the "taxable turnover". To arrive at tentative taxable turnover of the assessee under the Act, the authority deducting the tax cannot act mechanically and has to make tentative determination of the tax liability as per law. Since no higher authority to oversee such determination is envisaged under the Act, and determination of tentative tax liability remains operative till final assessment is made, it is necessary that time gap between the final assessment and tentative assessment is minimum, so that in case where huge amount is deducted, which may not be found due, the assessee does not suffer unnecessary loss. Some difference in the perception of the authority deducting the tax and that of the assessing authority under the Act is not ruled out but the grievance in this regard can be redressed to a great extent if the time taken by the assessing authority is not unreasonable long. Since the statutory provision, as read down, does not by itself provide for deduction of more amount than the tax liability, we have directed expeditious assessments where there is dispute of liability, there is no ground to interfere at this stage. Issuing lower liability or no liability certificate with reference to running bills is not shown to be against the Act. W.P. disposed of with a direction that the deduction should be made by determining taxable turnover as understood in law
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