M/S VINAYAK EDUCATION SOCIETY,NOIDA vs. DCIT (TDS), NOIDA

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ITA 2238/DEL/2016Status: DisposedITAT Delhi27 December 2017AY 2011-125 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not granted a fair opportunity to present its case before the CIT(A). Therefore, the matter was set aside to the CIT(A) to pass a speaking order after providing a proper opportunity to the assessee.

What were the facts?

The assessee paid lease rent to development authorities without deducting TDS. The Assessing Officer held the assessee liable for TDS under Section 201(1). The assessee appealed to the CIT(A) but did not appear, and the CIT(A) passed an order without a proper hearing.

What were the issues?

Whether the CIT(A) erred in passing an order without providing a proper opportunity of being heard to the assessee, and whether TDS was leviable on lease rent paid to development authorities.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES: ‘F’, NEW DELHI

For Respondent: Shri Atiq Ahmad, Sr.D.R
Hearing: 21/12/2017Pronounced: 27/12/2017

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: ‘F’, NEW DELHI BEFORE SHRI G.D.AGRAWAL, PRESIDENT AND SMT. BEENA A PILLAI, JUDICIAL MEMBER Vinayak Education Society DCIT (TDS) C/o M/s MB Gupta & Co. vs. A-2D, 5th floor, Room C 9, Sector 19 no.503 Noida 201 301 Sector 24 Noida PAN: AAATV5466F (Appellant) (Respondent) Appellant by Mrs. Sweety Kothari, C.A. Respondent by Shri Atiq Ahmad, Sr.D.R Date of Hearing 21/12/2017 Date of Pronouncement 27/12/2017 ORDER

PER BEENA A PILLAI, JUDICIAL MEMBER

1.

The present appeal has been filed by assessee against order dated 29/02/16 passed by Ld.CIT(A)-1, New Delhi for assessment year 2011-12 on the following grounds of appeal:

1. That the Ld.CIT(A)-1, Noida was wholly unjustified & grossly erred in passing the order for registration u/s 201(1)/201(1A) of the Income Tax Act, 1961 (the Act) of the appellant Trust without allowing proper and effective opportunity of being heard and thus the order was passed in quite derogation of principle of natural justice which renders the order void ab-initio.

ITA 2238/Del/2016 Assessment Year: 2011-12 Vinayak Education Society vs. DCIT(TDS), Noida 2. That the Ld.CIT(A)-1, Noida was wholly unjustified & grossly erred in rejecting the application for registration u/s 201(1)/201(1A) of the Income Tax Act, 1961 (the Act) of the appellant Trust without issuing any specific show cause to the appellant trust.

3.

That the Ld.DCIT(TDS) have grossly erred both on facts and in law by levying TDS on lease rent paid to Greater Noida Authority u/s 194I of the Act by the assessee.

4.

That the appellant craves leave to add, amend, alter, modify or delete any or all of the grounds of appeal before or at the time of hearing.”

2.

It is observed from the records placed before us that the only dispute/issue that has arisen is over the applicability of section 194 I to the lease rent paid by assessee to Noida Development Authority/The Greater Noida Industrial Development Authority/the Yamuna Expressway Development Authority for lease of immovable property. From orders passed by authorities below, it is observed that assessee did not deduct TDS on the said lease rent and Assessing Officer held that assessee was liable to deduct tax under section 201 (1).

3. Aggrieved by the assessment order passed assessee preferred an appeal before the Ld. CIT (A). 3.1. However it is observed by us that none had appeared before the Ld. CIT (A). It is observed that assessee did not get a fair opportunity to represent his case before Ld. CIT (A) and Ld.CIT(A) has not decided the issue on merits.

ITA 2238/Del/2016 Assessment Year: 2011-12 Vinayak Education Society vs. DCIT(TDS), Noida 4. We are therefore inclined to set aside this issue to Ld. CIT (A) to pass a speaking order after granting sufficient and proper opportunity to assessee as per law. 4.1. Accordingly grounds raised by assessee stands allowed for statistical purposes.

5. In the result appeal filed by assessee stands allowed for statistical purposes. Order pronounced in the Open Court on 27th December, 2017.

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