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2015 (8) TMI 1259 - AT - Income TaxTDS on the interest paid by it to New Okhla Industrial Development Authority (NOIDA) - Held that - As payment of interest by the banks to NOIDA does not require any tax withholding as the same is covered u/s 194A(3)(iii)(f). Resultantly, the order passed by the Addl CIT(TDS) u/s 201(1) and 201(1A) read with section 194A has been set aside.- Decided in favour of assessee.
Issues: Jurisdiction of CIT(A) to pass orders and confirmation/deletion of demand under sections 201(1) and 201(1A) of the Income-tax Act, 1961 for failure to deduct tax at source.
In the present judgment, the Appellate Tribunal ITAT DELHI considered appeals involving issues related to the jurisdiction of the CIT(A) to pass orders and the confirmation or deletion of demand under sections 201(1) and 201(1A) of the Income-tax Act, 1961. The appeals were filed by both the assessee and the Revenue, concerning the failure to deduct tax at source from interest payments made to New Okhla Industrial Development Authority (NOIDA). The Tribunal heard arguments from both sides and reviewed the relevant evidence. The Tribunal noted that in similar cases, the CIT(A) had ruled in favor of either the assessee or the Revenue, leading to appeals being filed by the opposing party. The Tribunal also referenced a separate order passed in a related appeal by the Revenue against Canara Bank, Noida, where it was determined that the jurisdiction of the CIT(A) to decide on orders from the Addl.CIT(TDS), Ghaziabad varied based on specific time periods. It was held that only the CIT(A), Noida had the rightful jurisdiction over appeals stemming from orders by the Addl. CIT(TDS), Ghaziabad. Additionally, on the merits, it was concluded that interest payments by banks to NOIDA did not necessitate tax withholding under section 194A(3)(iii)(f), resulting in the setting aside of the order by the Addl CIT(TDS) under sections 201(1) and 201(1A) of the Act. Following the precedent set in a previous appeal, the Tribunal determined that the assessee bank could not be considered in default under sections 201(1) and 201(1A) of the Act. Regarding appeals where jurisdiction was a key issue, it was established that the orders were correctly passed by the respective CIT(A) with jurisdiction over the assesses in question. Consequently, the appeals filed by the Revenue were dismissed, while those filed by the assessee were allowed. The judgment was pronounced in open court on 07.08.2015.
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