9911796707
TMI Blog2005 (1) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... erest u/s 201(1A) is leviable for such default. However, in this case, M/s. Wipro Ltd. [ 2002 (8) TMI 258 - ITAT BANGALORE] has already paid the tax which was otherwise to be deducted by the assessee. Therefore, according to the assessee, there was no default. In our opinion, since the amount of tax has already been paid by the recipient, i.e. , M/s. Wipro Ltd., the ITO (TDS) was justified in holding that there was no tax demand against the assessee. Although the assessee is to be treated as defaulter. However, since the assessee is a defaulter within the meaning of section 201 of the Act, hence, levy of interest was justified u/s 201(1A) of the Act, for the period of default. Before us, no details are available as to when the payment of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... These are appeals filed by the assessee directed against the orders of the CIT(A), Bangalore, dated 29-11-2001, in respect of orders under sections 201(1A) and 271C respectively, pertaining to the assessment years 1997-98 to 2000-01. 2. According to the ITO (TDS), the assessee was a defaulter since it failed to deduct tax from the rent and other services. Hence, interest under section 201(1A) was levied. Apart from charging interest, penalty under section 271C of the Act was also imposed for the same default. According to the Assessing Officer, the assessee-company made the following payments to M/s. Wipro Ltd. Assessment year Rent Support services Shared services 1997-98 Rs. 6,60,000 1998-99 Rs. 7,00,000 Rs. 1,90,090 Rs. 37,52,000 1999-00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of support services and that has been accepted by the ITO and recomputed the interest under section 201(1A). It was further submitted on behalf of the assessee that although the assessee has been treated as a defaulter, but no tax demand was raised against the assessee since the amount of tax was already paid by M/s. Wipro Ltd. The learned counsel for the assessee placed reliance on the decision of the Delhi High Court in Azadi Bachao Andolan v. Union of India [2001] 252 ITR 471 1 and also the decision of the Bangalore Bench of the Tribunal in the case of Wipro Finance Ltd. v. ITO [2003] 81 TTJ (Bang.) 887, copy of which has been filed before us. 4. On the other hand, the learned DR opposed the prayer of the assessee and submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices or for occupation of the premises by the assessee. Admittedly, the assessee was occupying the premises for his business. The premises was owned by M/s. Wipro Ltd., for which payment was made by the assessee to Wipro Ltd. This payment is noting but a consideration for use and occupancy of the premises and other services. The word rent has been explained in Explanation section 194-I of the Act, as follows : " Explanation to section 194-I : ( i ) rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1A) of the Act. However, the matter is sent back to the Assessing Officer for fresh computation of the amount of interest. The interest has to be levied up to the period of non-payment of tax. No interest is to be levied from the date when tax was paid by Wipro Ltd. 7. Regarding payment of shared services and support services, for the assessment year 1998-99, according to the ITO, it is covered by section 194J of the Act. On perusal of the provisions of section 194J, we find that the said provision is applicable in respect of payment of fees for professional services or fees for technical services. The assessee has submitted before us that service charges were paid to Wipro Ltd., for providing training, audit and technical services. This fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture it is necessary to take note of sections 273A and 273B. Section 273A dealt with power to reduce levy of penalty, etc., by the Commissioner, in a case which relates to penalty under section 271(1)( c ) of the Act. Waiver can be done only if the following conditions are satisfied, i.e. , the assessee has : ( a )prior to the detection of the concealment of particulars of income or of inaccurate particulars furnished in respect of such income, ( b )voluntarily and in good faith made full and true disclosure of such particulars, ( c )co-operated in any enquiry relating to assessment of income. A case of non-deduction of tax at source cannot prima facie be placed on a higher pedestal than concealment of income or furnishing inaccurate parti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
