The court's decision was guided by the pending consideration of the constitutional validity of Section 206C by the Supreme Court and the directions to refrain from examining the validity of the provisions of the Act.

G. C. Bharuka, J. - Heard learned counsel for the petitioner and the learned counsel for the Income-tax Department. In this ease the petitioner, which carries on business in timber and bamboos, has challenged the constitution validity of Section 206C of the Income-tax Ad, 1961 (hereinafter to be referred to as the Act only) as substituted with effect from 1.4.1992. A further prayer has also been made for Staying the operation of the said provision till the question of validity of the said provision is finally determined.

2. Sections 44AC and 206C were inserted in the Act by Finance Act, 1988. Under Section 44AC the Legislature had devised a notion of presumptive income i.e. 'income deemed to accrue by conclusive presumption of law for determining the income-tax liability of persons dealing in alcoholic liquor and timber. Under Section 206C a provision was made for collection of income-lax at source by the seller of the said commodities from the buyers with reference to the presumptive income postulated under Section 44AC. The said provision was challenged in this Court and in the Supreme Court on various constitutional grounds.

3. Keeping in view the wide ranging litigation on the aforesaid issue, the Supreme Court directed that the High Courts will not consider the constitutional validity of the said provision and the matter will be finally determined by the Apex Court but till then for interim orders, the dealers may approach the respective High Courts. The question of validity of said provision is still pending consideration before the Supreme Court. In the meantime by Finance Act, 1992, Section 44AC has been deleted from the Statute Book and Section 206C has been substituted, making it self contained. The effect of this amendment is that the concept of presumptive income for the purpose of computing income-tax has been given a go-by. Now Section 206C as it stands is merely a mode of collecting income-tax at source, which is subject to final determination of income of the• payee and the amounts collected arc subject to adjustment and refund on final assessment of income-tax under the provisions of the Act. Even earlier in respect of provisions of Section 44AC and 206C a Bench of this Court to which one of us, G. C. Bharuka, J. was a party, has refused to grant any interim relief by way of staying collection of income-tax for the reasons detailed therein in C.W.J.C. No. 5685 of 1991 (Haroon Rashid Vs. Union of India and others) disposed of on 5.9.91.

4. Keeping in view all these aspects, in our opinion, no case is made out by the petitioner for staying the operation of the impugned provisions. We may clarify that in view of the directions of the Supreme Court, we are refraining from examining the validity of the provisions of the Act, which will abide by the ultimate decision of the Supreme Court in this regard.

5. The writ application is, accordingly, dismissed.

S.B. Sinha, J. - I agree.