2004 (7) TMI 321 - AT - Income Tax

Summary

Issues:
- Appeal against order of CIT(A) regarding relief of Rs. 8,818 under ss. 201(1) and 201(1A) of the Act for asst. yr. 1996-97.

Analysis:
The appeal before the Appellate Tribunal ITAT Jodhpur involved the issue of allowing relief of Rs. 8,818, contested by the Revenue against the order of the CIT(A) for the assessment year 1996-97. The primary dispute centered around the cancellation of an order under sections 201(1) and 201(1A) of the Income Tax Act, 1961. The facts revealed that interest payments on a depositor's account were credited without tax deduction, with a subsequent filing of declaration in Form No. 15H after the fact. The Department contended that the Form No. 15H should have been filed promptly in duplicate and in the prescribed manner, within a specific timeframe. On the other hand, the assessee argued that the delay was beyond their control as the responsible person could not be held liable for the delay in receiving declarations from the interest recipients. The CIT(A) sided with the assessee, leading to the Revenue's appeal.

The arguments put forth by both parties revolved around the interpretation of the relevant provisions and circulars. The Authorised Representative relied on Circulars No. 346 and 351, emphasizing the requirements for declarations under section 197A of the Act. Additionally, reference was made to a Tribunal decision highlighting the technical nature of delays in receiving declarations and the consequent tax implications. The Authorised Representative contended that as per the circulars and precedents, no tax deduction at source was necessary due to the declaration under section 197A, and any delays in receiving declarations should not result in tax liability for the assessee.

After considering the submissions and evidence, the Tribunal upheld the contentions of the Authorised Representative. The Tribunal emphasized the distinction between "credit or payment of" and "responsible for paying," indicating that the provisions are triggered only upon actual payment in certain scenarios. Relying on the circulars and previous Tribunal decisions, the Tribunal dismissed the Department's appeal, citing consistency with the interpretation of the law and the precedents set by the Jodhpur Bench. Consequently, the appeal of the Department was ultimately dismissed by the Tribunal.