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2008 (11) TMI 363 - HC - Income TaxDeduction of tax at Source-. The petitioner is a civil contractor engaged in construction of bridges with the Department of Railways. The Civil contractor, sought quashing of the Show Cause Notice issued on the ground that default in making deposit of the tax deducted at source not being deliberate, the disproportionate punishment of disallowing the whole expenditure was discriminatory and violative of article 14 of the constitution of India. Held that- no exception could be taken to incorporation of a provision which excluded the right to seek permissible deduction in the event of failure of the assessee to deduct or to deposit the deducted tax as the proviso to the section relaxed to rigour.the provision could not be held to be harsh as one would get the benefit of deduction even in the subsequent year. The plea that there was genuine justification for not complying with the provision of tax deduction at source was a matter to be examined by the competent authority. There was no inherent lack of jurisdiction in the legislature enacting the provision providing penalty for evasion of statutory liability
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