M/S DIAMOND CEMENT vs. DEPUTY COMMISSIONER OF INCOME TAX,

ITA 17/JAB/2016Status: DisposedITAT Jabalpur29 September 2021AY 2012-134 pages
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What did the Tribunal hold?

The Tribunal held that if the deductee has paid the tax on the income, the deductor is not liable for the shortfall in TDS, but remains liable for interest under Section 201(1A). The matter was restored to the Assessing Officer to verify the deductee's tax payments.

What were the facts?

The assessee deducted TDS at 2% on payments for sewage treatment plant operations, considering them contractual payments under Section 194C. The Revenue, however, treated these as professional/technical services under Section 194J, demanding the difference in tax and interest.

What were the issues?

The primary issue was the correct rate of TDS applicable to payments for sewage treatment plant operations and the consequences of shortfall in TDS when the deductee has paid tax on the income.

Which sections of the Income-tax Act were involved?

Section 194C,Section 194J,Section 201(1),Section 201(1A)

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Income Tax Appellate Tribunal, JABALPUR BENCH,

Before: SH. SANJAY ARORA, HONBLE

Hearing: 28/09/2021Pronounced: 29/09/2021

Per Sanjay Arora, AM This is a set of three Appeals by the Assessee directed against the common Order dated 27/10/2015 by the Commissioner of Income Tax (Appeals)-1, Jabalpur (‘CIT(A)’ for short), dismissing the assessee’s appeals contesting its’ assessments under section 201(1) and 201(1A) of the Income Tax Act, 1961 (‘the Act’ hereinafter) for the Assessment Years (AYs.) 2010-11 to 2012-13 vide, again, a common order dated 07/6/2013. 2. The common issue in these appeals, for each of the three years under reference, is the correct rate at

The order continues below.

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