THE DY. COMMR. INCOME TAX, TDS CIRCLE, RAJKOT-GUJARAT vs. M/S CLASSIC NETWORK PVT. LTD., RAJKOT-GUJARAT

ITA 628/RJT/2014Status: DisposedITAT Rajkot27 June 2019AY 2012-1312 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee had a bonafide belief that TDS was not deductible, supported by consistent past assessments where no disallowance was made. The Revenue failed to provide evidence of middlemen involvement or contradict the royalty payment claims.

What were the facts?

The Revenue appealed against the deletion of additions made under sections 201(1) and 201(1A) by the Assessing Officer (AO) for non-deduction of TDS on labor charges and royalty payments. The assessee claimed that payments to individual laborers did not exceed the threshold and royalty was paid to government agencies.

What were the issues?

Whether the assessee is liable for TDS default for non-deduction on labor charges and royalty payments despite a bonafide belief and consistent past treatment.

Which sections of the Income-tax Act were involved?

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

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI WASEEM AHMED

Hearing: 19/06/2019Pronounced: 27/06/2019

Heard together (2 matters)

ITA No.628/RJT/2014
ITA No.375/RJT/2015

Read from the judgment's own cause title. This page is filed under one of them.

PER WASEEM AHMED ACCOUNTANT MEMBER:

The captioned two appeals have been filed at the instance of the Revenue against the orders of the Learned Commissioner of Income Tax (Appeals)-II, Rajkot [Ld.CIT(A) in short] dated 28/08/2014 and 30/06/2018 arising in the matter of assessment order passed under s.201(1) and 201(1A) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") dated

ITA nos.628-375/Rjt/2014-2015 Asstt. Years 2012-13 & 2013-14 2

19/03/2014 and

The order continues below.

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