SAIL REFRACTORY UNIT,BOKARO STEEL CITY vs. ITO, TDS WARD, BOKARO STEEL CITY

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ITA 346/RAN/2018Status: DisposedITAT Ranchi03 March 2020AY 2015-162 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A) himself acknowledged TDS was deducted on actual payments. The issue of whether TDS should have been deducted on mere provisions requires further factual and legal adjudication.

What were the facts?

The assessee was treated as an assessee in default for not paying TDS after deducting it. The CIT(A) held that the assessee had deducted TDS on actual payments, not mere provisions.

What were the issues?

Whether TDS is deductible on mere provisions or only on actual payments. The need for factual and legal adjudication on this point.

Which sections of the Income-tax Act were involved?

Section 201(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, : RANCHI BENCH, RANCHI

Before: SHRI S.S.GODARA

For Appellant: Dr. Bhanu Giri, Advocate
For Respondent: Smt. Nisha Singhmarr, JCIT(DR)
Hearing: 03.03.2020Pronounced: 03.03.2020

Date of hearing 03.03.2020 Date of pronouncement 03.03.2020 O R D E R S. S. Godara(Oral): These assessee’s three appeals for assessment years 2015-16, 2016-17 & 2017-18 arise against the Commissioner of Income Tax (Appeals), Hazaribagh, Jharkhand dated 26.09.2018 passed in case no.10439,10440&10441/HZB/2017-18 involving proceedings u/s 201(1) of the Income Tax Act, 1961 (in short ‘the Act’). Heard Dr. Bhanu Giri, learned authorised representative for assessee and Smt. Nisha Singhmarr appearing for the department.

2.

The assessee’s identical sole substantive grievance raised in the instant three appeals challenges correctness of both the lower authorities’ action treating it as the assessee in default to the tune of Rs.9,17,348/-, Rs.962,126/- and Rs.7,82,972/-; assessment year wise, respectively after holding it to have deducted but not paid the TDS. I notice from a perusal of CIT(A)’s identical detailed discussion that he himself has held the assessee to have deducted TDS on actual payments than mere provisions. I observe in these facts that the instant issue as to whether the assessee ought to have deducted TDS on mere provisions as well requires factual as well legal adjudication at the Assessing Officer’s end. I therefore restore the assessee’s instant sole substantive grievance back to the Assessing Officer. Sail Refractory Unit Learned counsel undertakes to appear before the Assessing Officer on or before 31.05.2020 for further proceedings.

3.

These assessee’s three appeals are allowed for statistical purposes.

Order is pronounced in the open court on 03.03.2020.

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