SAINI AND CO Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is placed before the Full Bench pursuant to an order dated December 8, 1999, passed by a Division Bench in C. M. P. No. 439 of 1999. The said order reads as under :

(2.) THE petitioners have filed the present petition by invoking the jurisdiction of this court under article 226/227 of the Constitution of India praying for a writ of mandamus directing the respondents not to deduct income-tax at source under Section 206C of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), from the petitioners who are holding L-13, L-13A licences treating them as buyers, where goods have not been obtained by them by way of auction and where the sale price of such goods to be sold by them is fixed by or under the State Act. THEy are thus not buyers and hence, not liable to pay income-tax at source under Section 206C.

(3.) SECTION 44AC as it then stood read as under :