INCOME TAX OFFICER, TDS, UDAIPUR vs. DEPUTY CONSERVATOR OF FOREST (SOUTH), UDAIPUR

ITA 114/JODH/2024Status: DisposedITAT Jodhpur24 March 2025AY 2014-15Bench: the Ld. CIT(A) who has deleted the said demand by stating that the VFPMCs are not contractors under Section 194C, as they are formed under the Rajasthan Forest Act, 1953, and function as self-help groups for forest conservation and development. The payments made to VFPMCs are not contract payments but are reimbursements for work done under the joint forest management policy of the State Government.7 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that payments made to VFPMCs are not contract payments under Section 194C. This decision was based on a coordinate bench ruling and CBDT circulars, which indicated that payments for forest conservation work executed by self-help groups under government schemes are not subject to TDS.

What were the facts?

The Revenue appealed against the deletion of tax demand by the CIT(A) concerning payments made to Van Suraksha and Prabandh Samitis (VFPMCs). The Revenue argued these were contract payments subject to TDS under Section 194C, as VFPMCs were not recognized as state government, local authority, trust, or cooperative society.

What were the issues?

Whether payments made to Van Suraksha and Prabandh Samitis (VFPMCs) for forest conservation work are considered contract payments attracting TDS under Section 194C of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 194C,Section 201(1),Section 201(1A),Section 10(20),Section 10(46),Section 11,Section 12,Section 80P

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Cases cited in this judgment(4)Show list

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Cause title — parties, addresses and appearances
IN THE INCOME TAX APPELLATE TRIBUNAL, DIVISION BENCH, JODHPUR HEARING THROUGH: HYBRID MODE BEFORE: SHRI. LALIET KUMAR, JM & DR. MITHA LAL MEENA, AM ITA No. 113 & 114 /Jodh/ 2024 Assessment Year : 2013-14 & 2014-15 The ITO Vs. The Deputy Conservator of TDS, Udaipur Forest South Rajasthan-313001 Van Bhawan Parisar, In front of Mohta Park, Chetak Circle Udaipur, Rajasthan PAN NO: JDHD01240B Appellant Respondent Assessee by : Shri Amit Kothari, C.A Revenue by : Shri Ajay Malik, CIT DR Date of Hearing : 18/03/2025 Date of Pronouncement : 24/03/2025

आदेश/Order PER LALIET KUMAR, J.M: Both the above appeals have been filed by the Revenue against the respective orders of the Ld. CIT(A) -4, Udaipur each dt. 16/01/2024 pertaining to Assessment Years 2013-14 & 014-15 respectively.

2.

Since the issues involved in both the above appeals are common and were heard together so they are being disposed of by this consolidated order for the sake of convenience and brevity.

3.

With the consent of both the parties, we shall take up the appeal in 113/Jodh/2024 for A.Y. 2013-14 as a lead case for discussion wherein the Revenue has raised the following ground:

1.

Whether the Ld. CIT(A) was justified in

The order continues below.

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