KRISHNA DEV SEHGAL Vs. UNIT TRUST OF INDIA

JUDGEMENT

(1.) This revision has been filed by the petitioner Shri Krishan Dev Sehgal and another against the order of the State Commission.

(2.) Short point involved in the complaint filed by the petitioner before the District Forum was whether the respondent - Unit Trust of India was within its rights to deduct Income Tax at source under Section 194-K of Income-tax Act, at the time of despatch of dividend amount to the petitioners or not ? Both the District Forum and the State Commission upheld the decision of the Unit Trust of India to deduct Income Tax at source under the above said provision.

(3.) The argument of the petitioner before us is that according to Section 194-K of the Income Tax Act, the provision in respect of deduction does not apply 'to such income credited or paid before the 1st day of July, 1995'. Since the cheque for dividend sent to them was dated 1st July, 1995, hence, they are covered by the above provision/exception. The case of the respondent U.T.I. is that dividend stood credited in favour of the petitioner on 30.6.1995 for which cheque could only be sent in the next day i.e. 1.7.1995, hence they are right in deducting the tax-at-source. We see merit in the case of respondent and in our view, since the dividend amount stood credited in favour of petitioners on 30th June, 1995, the exception quoted above does not help the petitioner. We do not see any ground to interfere with the order of the State Commission. Petitioner is admittedly an Income Tax payer and if he feels that any excess amount has been paid out, he could always move the Income Tax Authorities for refund of such amount.