2011 (12) TMI 602 - AT - Income Tax

Summary

Issues involved:
The judgment involves challenges to the orders of the CIT(A) canceling the orders of the ITO (TDS) u/s 201 and 201(1A) of the Income-tax Act for the assessment years 2006-07 and 2007-08.

Details of the Judgment:

1. Background and Facts:
The appellant, a Public Sector undertaking, was under scrutiny for compliance with TDS provisions. The Assessing Officer issued show cause notices u/s 201(1) and 201(1A) based on inquiry findings, leading to demands for two financial years. The CIT(A) canceled these orders, citing a Tribunal decision in the appellant's favor.

2. Arguments Presented:
The Revenue appealed the CIT(A)'s decision, with the DR supporting the AO's orders and the AR advocating for upholding the CIT(A)'s decision.

3. Tribunal's Analysis:
The Tribunal reviewed the CIT(A)'s order and noted that the issue was previously decided in the appellant's favor by a co-ordinate Bench. The Tribunal referenced a specific case and circulars from the Central Board of Direct Taxes to support the appellant's position.

4. Legal Precedents and Circulars:
The Tribunal highlighted the insertion of a proviso to section 194H by the Finance Act, 2007, exempting certain deductions. It emphasized that this exemption applied to the assessment year 2008-09 and was also applicable for prior years, as established in previous Tribunal decisions.

5. Decision and Conclusion:
Based on the analysis and legal precedents, the Tribunal upheld the CIT(A)'s decision to cancel the orders of the AO u/s 201 and 201(1A) for the relevant years, ultimately dismissing the Revenue's appeals.

6. Final Verdict:
Both appeals by the Revenue were dismissed, and the judgment was pronounced on 7th December 2011.