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Facts
The assessee, an insurance company, was held as an "assessee-in-default" for not deducting TDS on payments made to various dealers in the assessment years 2014-15 to 2019-20. The lower authorities treated the relationship as contractual, invoking Section 194C of the Act. The assessee failed to provide necessary evidence.
Held
The Tribunal found merit in the assessee's argument that the lower authorities' actions proceeding against the assessee under sections 201(1) read with 201(1A) of the Act were justified. The Tribunal noted that the assessee had not rebutted the findings against them.
Key Issues
Whether the assessee, an insurance company, was rightly treated as an "assessee-in-default" for non-deduction of TDS on payments to dealers, and if the proceedings under Section 201(1) r.w.s. 201(1A) were justified.
Sections Cited
194C, 201(1), 201(1A)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “DB” BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
Sr. Appeal No. A.Y. Assessee Respondent Order appealed against Proceedings No. u/s 1. 180/Agr/2022 2014-15 The DCIT (TDS) CIT/NFAC, Delhi’s DIN & 201 Oriental order No. Insurance ITBA/NFAC/S/250/2022- Co. Ltd. 23/1045748705(1) Dated 21.09.2022 2. 181/Agr/2022 2015-16 The DCIT (TDS) CIT/NFAC, Delhi’s DIN & 201 Oriental order No. Insurance ITBA/NFAC/S/250/2022- Co. Ltd. 23/1045748796(1) Dated 21.09.2022 3. 182/Agr/2022 2016-17 The DCIT (TDS) CIT/NFAC, Delhi’s DIN & 201 Oriental order No. Insurance ITBA/NFAC/S/250/2022- to 185/Agr./2022 The Oriental Insurance Co. Ltd. Co. Ltd. 23/1045748855(1) Dated 21.09.2022 4. 183/Agr/2022 2017-18 The DCIT (TDS) CIT/NFAC, Delhi’s DIN & 201 Oriental order No. Insurance ITBA/NFAC/S/250/2022- Co. Ltd. 23/1045748939(1) Dated 21.09.2022 5. 184/Agr/2022 2018-19 The DCIT (TDS) CIT/NFAC, Delhi’s DIN & 201 Oriental order No. Insurance ITBA/NFAC/S/250/2022- Co. Ltd. 23/1045749018(1) Dated 21.09.2022 6 185/Agr/2022 2019-20 The DCIT (TDS) CIT/NFAC, Delhi’s DIN & 201 Oriental order No. Insurance ITBA/NFAC/S/250/2022- Co. Ltd. 23/1045749075(1) Dated 21.09.2022
Heard both the parties at length. Case files perused.
It emerges during the course of hearing that the assessee is an insurance company has been held as the “assesse-in-default” for not having deducted TDS on payment made to various dealers in the assessment years from A.Ys. 2014-15 to 2019-20, involving varying sums, respectively. This is what made the learned lower authorities to treat the relation between the assessee and its payees as a contractual one inviting TDS deduction under Section 194C of the Act. A perusal of the lower appellate authority’s identical detailed discussion in paragraph 5.1 has held the assessee not only having failed in filing the necessary evidence before the Assessing Officer but also in the lower authorities as well. All these relevant findings have given un-rebutted from the assessee side at the time of hearing.
That being the case, we find merit in the learned representative vehement argument that both the lower authorities action proceeding against the assessee u/s 201(1) r.w.s. 201(1A) of the Act deserves to be confirmed. We order accordingly. to 185/Agr./2022 The Oriental Insurance Co. Ltd.
No other ground or argument has been raised or pressed during the course of hearing.
These assessee’s six appeals i.e. to 185/Agr./2022 are dismissed in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in the open court on 10.02.2025