The State of Tamil Nadu had filed representations to Minister of Finance and CBDT to grant exemption to PACCS from the provisions of Section 194N of the Act in the similar manner it was granted to commission agent or trader operating under Agriculture Produce Market Committee and registered under related law. The exemption was sought for the reason that the interest spread of PACCS was very marginal and deduction of tax at source would create cash crunch besides eating all its income. The High Court directed the MOF and CBDT to examine representation, call for related details/supporting documents, provide full opportunity of hearing to all stakeholders and pass reasoned order dealing with each contentions in accordance with law and until such exercise is taken, restrain from taking any coercive recovery u/s. 194H of the Act.
A.2979 Thirumohur Primary Agricultural Co-operative Credit Society Ltd. and Others v. ITO (2024)461 ITR 69 (Mad)(HC)
S. 194N : Payment of certain amounts in cash-Withdrawal of cash in excess of Rs. 1 crore-Representation to Government-The High Court directed the MOF and CBDT to examine representation, call for related details/supporting documents, provide full opportunity of hearing to all stakeholders and pass reasoned order dealing with each contentions in accordance with law and until such exercise is taken, restrain from taking any coercive recovery u/s. 194H of the Act.[S. 119, Art. 226]