Allahabad HC: CAT cannot interfere with orders of state govt against IAS

The Allahabad High Court ruled that the Central Administrative Tribunal (CAT) cannot assume its competency to frustrate the actions taken under the Prevention of Corruption Act, by the government against an Indian Administrative Service (IAS) or any officer.

Quashing an order passed by the CAT (Allahabad), the bench, consisting of Justices Amitava Lala and A P Sahi observed that power to the CAT was given after curtailing the powers of the High Court by virtue of Article 323-A of the Constitution of India, but sky is not the limit to construe as such by it.

The Judges, while allowing the writ petition filed by the UP government said, ‘As the power is high, preservation of the power is higher than that, unnecessarily the jurisdiction of the tribunal cannot be widened to interfere with orders/action taken by the government against the officers under the Prevention of Corruption Act.’ The High Court in its order has clarified that any order to be passed by the Court under the Prevention of Corruption Act is appealable and revisable as per the power conferred by the CrPC in the High Court. Therefore, such power cannot be regulated by the CAT.

The CAT Allahabad by an order passed on February 18, 2008 had quashed the order and had set aside all consequential action including FIR lodged against Vijay Varshney, an IAS officer in UP under section 13(1)(c) of the Prevention of Corruption Act, 1988 on his Original Application (OA) filed before it.

Vijay Varshney was promoted to IAS cadre in the year 1999 and was posted as District Magistrate, Lakhimpur. The charge against him was that he had amassed asset disproportionate to his known income and for which vigilance inquiry was ordered on February 28, 2007 and it had directed to lodge an FIR against him under the Prevention of Corruption Act. The order of the State government was challenged before the CAT by Varshney.

The Court rejected the argument of counsel A K Srivastava, appearing for the IAS officer that proceeding may be criminal nature in pursuance of filing of FIR, but it concerns service of an employee and therefore CAT had the power to interfere with order of the State government.

UNI

Tax Deduction at Source (TDS)

Tax deduction at source means the tax required to be paid by the assesses, is deducted by the person paying the income to him. Thus, the tax is deducted at the source of income itself. The income tax act enjoins on the payer of such income to deduct the given percentage of income as income tax and pay the balance amount to the recipient of such income. The tax so deducted at source by the payer is to be deposited in the income tax department account. The tax so deducted from the income of the recipient is deemed to be payment of income tax by the recipient at the time of his assessment.

For example, person responsible for paying any income which is chargeable to tax under the head 'Salaries' is required to compute the tax liability in respect of such income and deduct tax at source at the time of payment.If the employee has any other income,he needs to inform the employer so that employer can take that income into consideration while computing his tax liability but he will not take into account losses except loss from house property.

Similarly, person responsible for paying any income by way of 'interest on securities' or any other interests are required to deduct tax at source at the prescribed rates at the time of credit of such income to the account of the payee or at the time of payment,whichever is earlier.

The income from the following sources is subjected to tax deduction at source

• Salary and all other positive incomes under any head on income( Section 192 )


• Interest on securities ( Section 193 )


• Interest other than interest on securities( Section 194A )


• Payments to contractors and sub-contractors( Section 194C )


• Winnings from Lottery or crossword puzzles( Section 194B )


• Winnings from horse races( Section 194BB )


• Insurance Commission covering all payments for procuring Insurance business( Section 194D )


• Any interest other than interest on securities payable to non-residents not being a company or to a foreign company( Section 195 )


• Payment to non-resident sportsman including athlete or sports association/institution.In case of non-resident sportsman,payments in respect of advertisements as well as articles on any game/sports in India in newspapers,magazines,etc. is included( Section 194E )


• Payment in respect of deposits under NSS[National Savings Scheme]( Section 194EE )


• Payment on account of repurchase of Units by Mutual Fund or UTI( Section 194F )


• Payment for Commission or brokerage( Section 194H )


• Payment of rent( Section 194I )


• Payment of fees for professional or technical services( Section 194J )


• Commission to Stockist,distributors,buyers and sellers of Lottery tickets including remuneration or prize on such tickets( Section 194G )


• Income from Units purchased in foreign currency or long-term capital gain arising from the transfer of such Units purchased in foreign currency ( Section196B )


• Payment of any income to non-residents in respect of interest or dividend on bonds and shares( Section 196C )etc.