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TMI Blog2013 (6) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was no agreement between the parties and the appellant was of bonafide belief that he is not bound to deduct the tax at source because as per his knowledge and belief tax u/s 194C is always deductible when payment is made by specified person to resident contractor, treating it as squarely covered under the mandate of section 273B of the Act and the definition of the 'reasonable cause' in the cases of Azadi Bachao Andolan Vs. UOI and Woodward Governor India Pvt. Ltd. Vs. CIT. 1.2. In directing so, Ld. CIT(A) has failed to appreciate the following :- i) That the Ld. CIT(A) himself in the order dated 10.10.2011 in the case of Hardwar Development Authority Hardwar for A.Y.2008-09 [Appeal No. 58/HRD/2010-11] has held that there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount allotted for the work was directly transferred to the said agency in compliance with the direction of the department and the liability to pay income-tax in time was of the said agency. It was submitted that as soon as it was pointed out by the ITO (TDS), the said construction agency immediately deposited the said amount with interest to the government account. It was further contended that the post of Finance & Accounts Officer (F&AO) in the assessee's office was lying vacant since 1990-91 and it is only on the month of April 2010 that a permanent posting of F&AO was made. Accordingly it was contended that since there was no Accountant or Asstt. Accountant in this section, therefore, the office staff lacked knowledge of the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no agreement between the parties for carrying out the work. The executing agency made the estimate of the work and furnished the same before government for approval and after the sanction. The government transfer the amount in the account of Director Education and thereafter the Director Education transferred the funds to the concerned District Education Officer's where the building was to be constructed and thereafter the amount was transferred to the account of Executing agency by the D.E.O since there was no agreement between the parties. The appellant had a bonafide belief that he is not bound to deduct the tax at source i.e u/s 194C of Income Tax Act because as per his knowledge and belief, tax u/s 194C is always deductible when pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material available on record. On a consideration of the same, we are of the view that in the case of the assessee i.e Uttarakhand Educational Department there was bona fide belief under which the assessee operated that it was not required to deduct TDS. The assessee has claimed that adequately qualified staff namely F&A Officer was not available at the relevant point of time; the assessee has also contended that as the assessee was under a bona fide belief that since it had no authority to withhold the funds received from the U.P. Government i.e. UP Rajkiya Nirman Nigam Ltd. after due approvals for the Executing Authority as per the contract to which the assessee was not even a signatory there was nothing more to be done except to rele ..... X X X X Extracts X X X X X X X X Extracts X X X X
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