PR.COMMISSIONER OF INCOME TAX (TDS)-I vs. M/S CATHOLIC RELIEF SERVICES

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ITA - 316/2015HC Delhi2015:DHC:11739-DB13 October 20153 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal upheld the CIT(A)'s order, finding that since the assessee had already paid interest for delayed TDS deposits and the CIT(A) provided limited relief, no substantial question of law arose.

What were the facts?

The Revenue appealed against the ITAT's order concerning interest charged under Section 201(1A) for delayed TDS deposits. The assessee had already paid interest for delayed deposits, and the CIT(A) granted limited relief on interest related to estimated perquisites and enhanced income.

What were the issues?

Whether substantial question of law arises regarding the charging of interest under Section 201(1A) when the assessee has already paid interest for delayed TDS deposits and received limited relief from lower authorities.

Which sections of the Income-tax Act were involved?

Section 201(1A),Section 260A

AI-generated summary — verify with the full judgment below

3' $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 7. + ITA 291/2015 PR. COMMISSIONER OF INCOME TAX (TDS)-I Appellant Through: Mr. Kamal Sawhney, Senior Standing eounsel with Mr. Raghvendra Singh, Junior Standing eounsel. versus M/S CATHOLIC RELIEF SERVICES Respondent Through: Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha and Mr. Vaibhav Kulkami, Advocates. With + ITA 306/2015 PR. COMMISSIONER OF INCOME TAX (TDS)-I Appellant Through: Mr. Kamal Sawhney, Senior Standing counsel with Mr. Raghvendra Singh, Junior Standing eounsel. versus M/S CATHOLIC RELIEF SERVICES Respondent Through: Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha and Mr. Vaibhav Kulkami, Advocates. And 9. + ITA 316/2015 ITAs 291, 306, & 316/2015 Page 1 of 3 2015:DHC:11739-DB

PR.COMMISSIONER OF INCOME TAX (TDS)-I Appellant Through: Mr. Kamal Sawhney, Senior Standing counsel with Mr. Raghvendra Singh, Junior Standing counsel. versus M/S CATHOLIC RELIEF SERVICES Respondent Through: Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha and Mr. Vaibhav Kulkami, Advocates. CORAM: DR. JUSTICE S.MURALIDHAR MR. JUSTICE VIBHU BAKHRU ORDER % 13.10.2015 1. These appeals by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') are directed against the impugned common order dated 26 September 2014 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA Nos. 4017, 4018, 4019/Del/2012 for the Assessment Years ('AYs') 2006-07, 2007-08 and 2008-09. 2. This Court by its order dated 4^^ August 2015 directed notice to issue limited to the question of interest. 3. Ms. Kavita Jha, learned counsel for the Respondent, drew the attention of the Court to the decision dated 9th May 2012 of the Commissioner of Income Tax Appeals ['CIT (A)'] where in para 6 it is noted: "In respect of charging of interest under Section 201(1 A), it is found that the Appellant itself has paid interest under Section 201(1 A) against the delayed deposits of ITAs 291, 306, & 316/2015 2 of3 2015:DHC:11739-DB

the TDS." The CIT (A) proceeded to grant limited relief in respect of the interest charged under Section 201(1A) against the shortfall of tax determined on account of estimation of perquisite and enhancement of income of the expatriate employees thus disallowing the claim of relief. This deletion worked out to Rs. 4,93,637 in the aggregate for the three AYs in question. 4. Considering that the Assessee had already paid interest under Section 201 (lA) of the Act to the extent of delayed payment of TDS, and that the CIT (A) had granted only a limited relief as regards the interest amount payable by the Assessee, the impugned order of the ITAT upholding the above order of the CIT (A) does not give rise to any substantial question of law. 5. These appeals are accordingly dismissed. S.MURALIDHAR, J OCTOBER 13,2015 VIBHU BAKHRU, J Rk ITAs 291,306, & 316/2015 „ , , Page 3 of 3 2015:DHC:11739-DB

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