DCIT (TDS), JAIPUR vs. NATIONAL SOCIETY OF ENGINEERING RESEARCH & DEVELOPMENT, JAIPUR

PER SHRI KUL BHARAT, JM.

This appeal by the Revenue is directed against the order of ld. CIT (A)-III,

Jaipur, Rajasthan, dated 27.07.2016 pertaining to A.Y. 2012-13. The Revenue has

raised the following grounds of appeal :-

“1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred on facts and in law in holding that the assesee is not required to deduct TDS u/s 1941 of the IT Acct, 1961 on payment to RIICO on account of lease rent.

2 ITA No. 892/JP/2016 M/s National Society for Engineering Research& Development.

verification on 31/10/2012 for the purpose of TDS verification at the office premises

of the assessee. On verification of the accounts of the society it was noticed by the

Assessing Officer that the assessee did not deduct tax on the amount paid to RIICO.

Therefore, he treated the assessee in default and computed tax liability and interest

their on u/s 201(1) and 201(1A) of the Act.

Aggrieved by this, the assessee preferred an appeal before ld. CIT(A), who after

considering the submissions partly allowed the appeal. Thereby, the demand raised

u/s 201(1) and section 201(1A) of the Act was deleted. Now, the revenue is in

appeal.

covered in favour of the assessee by the decision of the Hon’ble Tribunal rendered in

the case of M/s Tijaria Polypipes Ltd. Vs. DCIT in ITA No. 14 & 22/JP/2014 dated

30/05/2016 and in the case of M/s Gupta Fabtex Pvt. Ltd. vs. DCIT in ITA No. 647 &

648/JP/2013 dated 16/12/2015. The ld. Counsel for the assessee also placed

reliance on the circular issued by the Central Board of Direct Taxes No. 35/2016

dated 13/10/2016 in support of the contention that no tax is required to be

deducted on such payments. Ld. Departmental Representative submitted that

although the issue has been decided by this Hon’ble Tribunal against the Revenue.

The Revenue has not filed an appeal on the basis that, tax effect was less than the

monetary limit prescribed in this behalf. Therefore, the Revenue is contesting this

issue on merit. He submitted that the ld. CIT(A) failed to appreciated that the

assessee was required to deduct tax.

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and gone through the order of the authorities below. The Co-ordinate Bench in the

case of M/s Gupta Fabtex Pvt. Ltd.(supra), under the identical facts, after

considering the submissions and following the decision of the Co-ordinate Bench

held that the assessee was not liable for deduction of tax on the payment made to

the RIICO. This decision of the Tribunal is following by the Co-ordinate Bench in the

case of M/s Tijaria Polypipes Ltd. Vs. DCIT(supra). The Revenue has not brought to

our notice any contrary binding precedents by the jurisdictional High Court in the

Hon’ble Supreme Court. Therefore, taking a consistent view, we do not see any

reason to interfere into the order of the ld. CIT(A), same is hereby affirmed. Thus,

the Grounds raised in the Revenue’s appeal are rejected.

Order is pronounced in the open court on Monday ,the 17th day of April 2017.

Sd/- Sd/- ( HkkxpUn ½ ( dqy Hkkjr) ( BHAGCHAND) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 17 /04/2017. Pooja/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

4 ITA No. 892/JP/2016 M/s National Society for Engineering Research& Development.

vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत