UCO BANK Vs. UNION OF INDIA

JUDGEMENT

(1.) The writ petition (W.P.(C) No.3563/2012) has been filed challenging a notice dated 25.04.2012 issued by the Assistant Commissioner of Income Tax, Delhi (hereafter 'ACIT') whereby the petitioner bank was directed to submit the details of deposits made with the petitioner bank by all litigants in the name of Registrar General of this Court during the Financial Years 2005-06 to 2010-11. The petitioner bank also impugns a circular bearing no. 8/2011 dated 14.10.2011 (hereafter 'impugned circular') issued by Central Board of Direct Taxes (CBDT) whereby it was clarified that in cases where deposits were made in terms of directions issued by Court, the Banks were required to deduct tax at source and issue tax deducted at source (hereafter 'TDS') certificates.

(2.) The writ petition (W.P.(C) No.2714/2014) has been filed impugning an order dated 10.03.2014 passed by the Deputy Commissioner of Income Tax, holding the petitioner bank to be an assessee in default within the meaning of Section 201(1) of the Income Tax Act, 1961 (hereafter the 'Act') for a sum of Rs. 7,78,34,950 determined under Section 201(1)/(lA) of the Act.

(3.) The brief facts necessary for considering the present petitions are that the petitioner bank, on 29.09.2004, accepted a Fixed Deposit (FD) for a sum of Rs. 7,07,45,550/- in the name of Register General of this Court and issued a Fixed Deposit Receipt (FDR) bearing no. 163275. The said FD was made in compliance of a direction passed by this Court in Execution Petition No. 216/1999 titled as 'Union of India v. Oriental Building Furnishing Co. Ltd.' The said FD was initially for a period of one year, however, before maturity of the said FD, certain amount was paid to M/s CJ International Hotel on 27.10.2004 and the remaining amount of Rs. 6,93,87,888/- (being balance principal and accrued interest) was again accepted as a FD for a period of one year. The said FD was renewed annually except once when instead of 30.10.2007, it was renewed on 06.02.2008.