9911796707
TMI Blog2014 (1) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... etion certificate of house before allowing deduction u/s. 24(1)(vi) and u/s. 80C of the Act for arriving at the TDS liability upheld – following C.I.T. vs. Semiconductor Complex Ltd. [2007 (1) TMI 155 - PUNJAB AND HARYANA High Court] – Decided against Revenue. Deletion of Interest u/s 201(1A) of the Act – Disproportionate deduction of tax from salary – Held that:- Following The Commissioner of Income Tax Versus M/s Enron Expat Services Inc. [2010 (8) TMI 201 - UTTARAKHAND HIGH COURT] - Section 192(3) permits the assessee to make adjustments during the financial year and once the assessee has deducted the tax u/s. 192(1) by making adjustments during the financial year it cannot be held that the assessee was in default u/s. 201(1A) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the employee of the assessee deductor in the absence of completion certificate of the houses for which HBA has been taken by the employees of the assessee. 3. On the facts and in the circumstances of the case the Ld. Commissioner of Income Tax (A), Rohtak has erred in law in deleting the demand of interest of Rs. 28535/- u/s. 201(1A) of the I.T. Act, 1961 charged on account of disproportionate deduction of tax from the salary paid by the assessee deductor to its employees. 4. That the appellant craves for the permission to add, delete or amend the ground of appeal before or at the time of hearing of appeal. 3. Apropos ground no. 1 and 2 Brief facts are that survey operations u/s. 133A of the Act were conducted on the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above order the Revenue is in appeal before us. 6. We have heard the rival contentions in light of the material produced and precedent relied upon. We find that section 192(1) casts liability on the deductor to deduct TDS on the estimated income under the head salaries of the employees. Section 192(2B) r.w.rt. 26B stipulates that the deductor shall take the particulars of loss under the head income from house property filed by the employees in the prescribed form and manner. The prescribed form and manner has been specified in the said Rule by way of verification. It is further admitted that assessee obtained verification of particulars of loss under the head income from house property from the employees. The assessee company has also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow cause issued by the Assessing Officer as to why interest u/s. 201(1A) be not charged for disproportionate deduction of tax, the assessee submitted that annual increments of different employees are given on various dates and deduction of tax is made from time to time during the year depending upon the employees salary, increment and savings. The assessee further submitted that any over deduction will cause industrial relation problems. The Assessing Officer held that the reply of the assessee is not acceptable as the salary of its employees and the rate and date of increments of its employees are always very much in the knowledge of the assessee in the very beginning of the financial year. The tax deducted during the earlier year is in it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) by making adjustments during the financial year. In this regard, Hon ble Uttarakhand High Court decision in the case of C.I.T. vs. Enron Expat Services inc. 330 ITR 496 is relevant. The Hon ble High Court has expounded as under:- It is true that sub-section 1 of section 192 of the Act contemplates deduction of income tax at the time of payment and at the same time, Section 201(1A) deals with a situation when tax is not deducted, but sub-section 3 of Section 192 is a part of Section 192 required to be read with sub-section 1 thereof, for nothing has been expressed in the Act to treat sub-section 3 as a separate provision. The object and purpose of sub-section 3 is to permit the person obliged to deduct to make adjustments. Sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
