DISTRICT PROJECT OFFICER, SERVA SHIKSHA ABHIYAN,JAIPUR vs. ITO (TDS), ALWAR
What did the Tribunal hold?
The Tribunal remanded the issue of whether the recipient included the amount in their income and paid tax thereon to the Assessing Officer for verification. If verified, the liability under section 201(1) would be nil, but interest under section 201(1A) would remain.
What were the facts?
The assessee appealed against orders confirming demand under section 201(1)/201(1A) for AYs 2013-14 & 2014-15. The appeals were recalled for deciding a specific ground regarding recipient tax payment.
What were the issues?
Whether the assessee is liable under Section 201(1) when the recipient has already paid tax on the income. The applicability of the proviso to Section 201(1) was to be examined.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 84 & 85/JP/2017
यकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh Hkkxpan] ys[kk lnL; ds le{k BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, AM vk;dj vihy la-@ITA No. 84 & 85/JP/2017 fu/kZkj.k o"kZ@Assessment Year : 2013-14 & 2014-15 cuke District Project Officer, The Income Tax Officer, Vs. Sarva Shiksha Abhiyaan, (TDS), Dholpur. Alwar. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: JPRDO3027D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Parwal (C.A.) jktLo dh vksj ls@ Revenue by : Shri A.S. Nehra (JCIT) lquokbZ dh rkjh[k@ Date of Hearing : 08/01/2018 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 10/01/2018 vkns'k@ ORDER
PER: VIJAY PAL RAO, J.M. These two appeals by the assessee are directed against the order dated 11.11.2016 and 08.09.2016 arising from the orders passed u/s 201(1)/ 201(1A) of the Income Tax Act for the assessment years 2013- 14 & 2014-15 respectively. 2. These appeals by the assessee were earlier decided by this Tribunal vide order dated 30.06.2017 however, subsequently the Tribunal vide order dated 27.11.2017 in M.A. No. 121 & 122/JP/2017
ITA No. 84&85/JP/2017 District Project Officer vs ITO(TDS)
recalled the order dated 30.09.2016 for limited purpose of deciding
ground No. 1.1 which has been mentioned in the impugned order dated
27.11.2017 as ground No. 2 which reads as under:-
“1.1 The ld. CIT(A) has further erred in confirming the demand u/s 201(1) without considering that the recipient of income has included the amount so paid in its income and paid tax thereon.” This ground is a common for both the assessment year, therefore, is
being disposed off by this Composite order.
We have heard the ld. AR as well as ld. DR and considered the
relevant material on record. So far as the other issued of applicability of
section 194C of the Income Tax Act and obligation to deduct TDS is
concerned the said issue has been decided by the Tribunal while
passing order dated 30.09.2016. Therefore, the ground no. 1 of the
assessee’s appeal stands adjudicated by the earlier orders of this
Tribunal. As far as the issue regarding the applicability of the proviso to
section 201(1) of the I.T. Act whether the recipient of the amount has
already included the amount in its income and paid tax thereupon, the
said issue requires to be verified and examined by considering the
relevant record being the return of income filed by the recipient.
Therefore, this issue is set aside to the record of the Assessing Officer
for proper verification and examination of the fact whether the recipient
ITA No. 84&85/JP/2017 District Project Officer vs ITO(TDS) of the amount in question have included the same in their income and
paid tax thereupon. Hence, in view of the above facts and circumstances of the case if in the remand proceedings the AO finds
that the recipient of the amount has already included the same in their return of income then there is no liability of the assessee u/s 201(1) of
the Income Tax Act, however the Assessing Officer has to restrict the liability of the assessee u/s 201(1A) towards interest only.
In the result, the appeals of the assessee are partly allowed for statistical purpose.
Order pronounced in the open court on 10/01/2018
Sd/- Sd/- ¼Hkkxpan ½ ¼fot; iky jko½ (Bhagchand) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 10/01/2018. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- District Project Officer, Sarva Shiksha Abhiyaan, Dholpur. 2. izR;FkhZ@ The Respondent- The ITO(TDS), Alwar. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 84 & 85/JP/2017} vkns'kkuqlkj@ By order, सहायक पंजीकार@Aेेज. त्महपेजतंत 3
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