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TMI Blog2012 (10) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... th interest - appeals of the assessee are dismissed - IT Appeal Nos. 83 To 85 (Agra) of 2011 - - - Dated:- 27-4-2012 - Bhavnesh Saini, A.L. Gehlot, JJ. R.K. Agarwal for the Appellant. A.K. Sharma for the Respondent. ORDER Bhavnesh Saini, Judicial Member All the appeals by the assessee are directed against the common order of ld. CIT(A)-I, Agra dated 24.12.2010 for F.Y. 2006-07, 2007-08 and 2008-09 relevant to the assessment years 2007-08, 2008-09 and 2009-10 respectively passed u/s. 206C(6)/206C(7) of the I.T. Act. 2. We have heard the ld. representatives of both the parties, perused the findings of the authorities below and the material on record. 3. Briefly, the facts of the case are that a survey u/s. 133A of the IT Act was conducted on 29.02.2008 at the premises of the assessee to check the correct applicability of TDS/TCS provisions of the Income-tax Act. During the course of survey, it was noticed that the assessee/deductor has been allotting parking lots to different contractors and was not collecting taxes at source (TCS) from the contractors. Accordingly, summons u/s. 131 of the IT Act was issued to the assessee/deductor requiring to furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submissions of the assessee that those provisions are not applicable. However, the ld. CIT(A) considered the issue relating to the matter of TCS, which is applicable to the present case. The ld. counsel for the assessee also did not dispute the figures of tax collected and interest thereon for all the three years, as noted by the AO in the impugned order. The ld. counsel for the assessee on different arguments challenged the order of the ld. CIT(A) in raising the demand against the assessee. Therefore, it is necessary to reproduce the relevant provisions of section 206C of the IT Act, which are applicable to the present case. 4.2 Section 206C(1C), (6), (6A) and (7) of the IT Act read as under : "(1C). Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee") for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or les ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest shall be paid before furnishing the quarterly statement for each quarter in accordance with the provisions of sub-section (3). The above provisions provide that every person, who grants a lease or license or enters into a contract or otherwise transfers any right or interest either in whole or part, in making parking lots to another person other than public sector company, for the use of such parking lots for the purpose of business, shall at the time of debiting of the amount payable by the licensee or lessee to their account in cash or by the issue of a cheque or draft or by any other mode , collect from the licensee or lessee the amount of tax mentioned in the above schedule. Sub-clause (6) provides the responsibility of person for collecting the tax, who fails to collect the taxes in accordance with the above provisions and according to sub-clause (7), such person shall be liable for interest at the specified date. 4.3 The assessee did not dispute the fact that the assessee auctioned for running of parking lots and actually allotted parking lots to different persons. The details of the same are noted in the impugned orders. The assessee also did not dispute befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 206C(1C) are applicable in the case of the assessee. 4.4 The ld. counsel for the assessee further argued that the AO has wrongly mentioned provisions of section 206C(6A) in the impugned order, though the said provision was inserted in the Act by Finance Act, 2006 w.e.f. 01.04.2007. Therefore, it would not be applicable for the assessment year 2007-08. The ld. CIT(A), however, found that if by mistake wrong section is mentioned, it would not make the order invalid. We agree with the findings of the ld. CIT(A) that quoting of wrong provision of law would not be relevant for the purpose of deciding the issue in accordance with law. Since the assessee was responsible for collecting taxes and failed to do so in accordance with the provisions of law, therefore, for the failure of the assessee to collect the taxes, the assessee would be liable to pay tax to the credit of the Central Government in accordance with law. 4.5 The ld. counsel for the assessee further submitted that no proper notice has been issued before initiating the proceedings under the provision of Section 206C read with sub-section (1C), (6) and (7) of the IT Act. He has referred to the notice of the AO a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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