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Income Tax Appellate Tribunal, CHANDIGARH BENCHES, ‘B’ CHANDIGARH
Before: SHRI SANJAY GARG & Ms. ANNAPURNA GUPTA
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the Revenue against the order dated 18.01.2018 of the Commissioner of Income Tax (Appeals)-2, Chandigarh [hereinafter referred to as CIT(A)].
The sole issue raised in this appeal by the Revenue is regarding the action of the CIT(A) in deleting the disallowance made by the Assessing officer u/s 40(a)(ia) of the Income-tax Act, 1961 (in short 'the Act') for non- deduction of TDS as per the provisions of section 194A of the Act on the interest payment made by the assessee to Punjab Urban Development Authority (PUDA). At the outset, Ld. Counsel for the assessee has invited our attention to the provisions of sub clause (f) of sub clause (iii), sub-section (3) of section 194A of the Act. The provisions of sub section (3) requiring an
2 ITA No.433-c-2018- Shri Nirankar Singh, Mohali
assessee to deduct TDS on interest payment is not applicable to such
institutions, associations or bodies which the Central Government may notify
in this behalf in the office gazette. As per the Notification dated 22.10.1970,
issued by the Central government any corporation established by the Central /
State or Provincial Act is notified for the purpose of sub clause (f) of clause
(iii) or sub section (3) of section 194A of the Act. It has been further
submitted that the payment in this case has been made to PUDA which has
been established by the State Act namely Punjab Regional and Town Planning
and Development Act, 1995. The issue, thus, is squarely covered by the
decision of the Coordinate Chandigarh Bench of the Tribunal in the case of
M/s Sukham Infrastructure Ltd. Vs. ITO’ in ITA No.. 638/Chd/2015 & others
dated 07.06.2018. Moreover, the issue is now squarely covered by the decision
of the Hon'ble Supreme Court in the case of ‘CIT (TDS) & Anr Vs. Canara
Bank’ Civil appeal No. 6020 of 2018 vide order dated 2.7.2018.
In view of this, we do not find any infirmity in the order of the CIT(A)
and deleting the addition so made by the Assessing officer. Moreover, the tax
effect in the case in hand is less than prescribed limit of Rs. 20 lacs, as per the
latest CBDT Circular 3/2018 dated 11.7.2018, which is applicable
retrospectively to the pending appeals also. Thus on this score also, the
appeal is liable to be dismissed.
In the result, the appeal of the Revenue is hereby dismissed. Order pronounced in the Open Court on 01.08.2018
Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 1.8.2018 Rkk
3 ITA No.433-c-2018- Shri Nirankar Singh, Mohali
Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR