SHRI CHAMUNDA CREDIT COOPERATIVE SOCIETY LTD.,RAJKOT vs. INCOME TAX OFFICER,TDS-2, RAJKOT

ITA 32/RJT/2018Status: DisposedITAT Rajkot25 June 2019AY 2009-106 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the proviso to Section 201(1) allows a payer to not be treated as an assessee in default if the recipient has included the sum in their income, paid tax thereon, and furnished a certificate. Following the Delhi High Court's decision in CIT vs. Ansal Land Mark Township Pvt. Ltd., the Tribunal set aside the issue to the AO for fresh adjudication.

What were the facts?

The assessee, a credit cooperative society, paid commission to its agents without deducting TDS under Section 194H. The Assessing Officer treated the assessee as being in default under Section 201(1) and 201(1A) and levied a demand. The assessee argued that the agents were quasi-employees and had already paid tax on the commission.

What were the issues?

Whether the assessee can be treated as an assessee in default for non-deduction of TDS when the recipients have already offered the income to tax. Applicability of the proviso to Section 201(1) retrospectively.

Which sections of the Income-tax Act were involved?

Section 194H,Section 201(1),Section 201(1A)

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI WASEEM AHMED

For Appellant: Shri J.R. Mankodi, A.R
Hearing: 18/06/2019Pronounced: 25/06/2019

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-I, Rajkot [Ld.CIT(A) in short] dated 29/11/2017 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 30/03/2016 relevant to Assessment Year (A.Y) 2009-2010. Asstt. Year 2009-10 2

The assessee has raised the follo

The order continues below.

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