Loading judgment…
No AI summary yet for this case.
ITA No. 891/08 & 894/2008
Page 1
*
IN THE HIGH COURT OF DELHI AT NEW DELHI +
ITA No. 891/08 & 894/2008
July 16, 2009 ITA No. 891/08
THE COMMISSIONER OF INCOME TAX-XVII
...Appellant
Through: Ms. Rashmi Chopra and Mr.
Chandramani Bhardwaj, Advocates
VERSUS TRANS BHARAT AVIATION (P) LTD.
....Respondent
Through: AND THE COMMISSIONER OF INCOME TAX-XVII
...Appellant
Through: Ms. Rashmi Chopra and Mr.
Chandramani Bhardwaj, Advocates
VERSUS TRANS BHARAT AVIATION (P) LTD.
....Respondent
Through: CORAM: HON’BLE MR. JUSTICE A. K. SIKRI HON’BLE MR. JUSTICE VALMIKI J.MEHTA
Whether the Reporters of local papers may be allowed to see the judgment?
To be referred to the Reporter or not?
Whether the judgment should be reported in the Digest?
2009:DHC:2723-DB
ITA No. 891/08 & 894/2008
Page 2
%
A.K.SIKRI, J. 1 These appeals have been filed by the Revenue under Section 260-A of the Income Tax Act questioning the validity of the order dated 31.8.2007 of the Income Tax Appellate Tribunal (I.T.A.T). By the impugned order, the ITAT allowed the appeals of the assessee to the extent that it held that the assessee is not liable to pay the TDS. The ITAT however held the assessee liable for interest under Section 201(1)(A) of the Act. For the sake of convenience reference is being made to the facts of ITA 891/2008. 2 The facts are that the assessee is engaged in the business of air taxi operators. During the course of the verification proceedings, it was found that the assessee in the year under consideration had made payments to Airport Authority of India (AAI) in respect of space rent, rent for office space, parking charges etc at various airports all over India on which no tax was deducted at source. The Assessing Officer held the assessee was liable to deduct TDS and since TDS was not deducted, the assessee was held to be in default under Section 201(1) and also liable for interest under Section 201(1)(A) of the Act. The CIT(A) sustained the order of the Assessing Officer and which resulted in filing of the appeal by the assessee before the ITAT, and which as stated above was partly allowed. 2009:DHC:2723-DB
ITA No. 891/08 & 894/2008 2009:DHC:2723-DB
ITA No. 891/08 & 894/2008
Page 4
the return of the Airport Authority of India (AAI) wherein it should have been till the date of actual payment of tax by the Airport Authority of India. The ITAT in our opinion has rightly held that since Airport Authority of India is a Government undertaking, the taxes may be presumed to have been paid lastly by the due date of filing of the return of income and, therefore, the liability of the assessee to pay interest on the amount which was to be deducted as TDS ends with the due date of filing of the return by the Airport Authority of India. 8 Accordingly, no substantial question of law arises. The appeals are accordingly dismissed.
A.K. SIKRI, J
VALMIKI J.MEHTA, J July 16, 2009 ib 2009:DHC:2723-DB