Chief Commissioner Of Income Tax, ... vs The Custodian

The Supreme Court granted leave in SLP(C) No. 1922 of 2000 and ruled that payments made to Notified parties are subject to tax deduction at source (TDS) even if made after 5.6.1992. The Court held that the Income Tax Department can only appropriate TDS amounts towards tax liabilities of Notified Parties for the period from 1.4.1991 to 6.6.1992, with any excess amounts to be refunded along with interest as per Section 244(1) of the Income Tax Act. Additionally, the Court mandated the Income Tax Department to provide periodic statements to the Custodian regarding TDS amounts.