9911796707
TMI Blog2014 (1) TMI 1592X X X X Extracts X X X X X X X X Extracts X X X X ..... . He is not supposed to calculate the income minutely to precession - Decided in favour of assessee. - Writ Tax No. - 620 of 2009, Writ Tax No. - 619 of 2009, Writ Tax No. - 621 of 2009 - - - Dated:- 17-12-2013 - Hon'ble Pankaj Mithal,JJ. For the Petitioner : Rakesh Ranjan Agrawal For the Respondent : A.S.G.I.,C.S.C.(I.Tax),G. Krishna ORDER Heard Sri Rakesh Ranjan Agrawal, Senior Advocate, assisted by Sri Suyash Agrawal, learned counsel for the petitioner and Sri Govind Krishna, learned Standing Counsel for the Income Tax Department. The above three petitions relate to the assessment years 2003-04, 2004-05 and 2005-06 and are based upon identical facts involving the same assessee. In all the writ petitions separate bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyees to the two institutions M/s Manav Kalyan Sansthan, Kabir Road, Varanasi and Swami Sahjanand Educational Trust, Kamachha, Varanasi for integral rural development work as envisaged under Section 35 CCA of the Act on the basis of the certificate of Commissioner of Income Tax dated 11.3.2003 and 1.4.2003 issued under Section 80GGA of the Act to the said institutions. The two authorities aforesaid held that the benefit so accorded by the petitioner was not permissible at his level and as such he failed to make proper deduction of tax at source from the income from salaries of the employees. It was further held that the petitioner in computing the total income of its employees has acted in contravention of the instructions issued by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of salary to the employees has to deduct tax from the amount payable on the estimated income of the assessee under the head salary. In the computation of the estimated income of the assessee it is but natural that statutory deductions provided under the Act have to given effect to. The estimated income of the employees referred to in Section 192(1) of the Act is the income of the employees from salaries after according benefits of the deductions permissible under Section 80GGA of the Act or similar other provisions under the Act. In this view of the matter, the submission that the computation of income was to be left upon the assessing officer is not correct. The assessing officer computes the net income chargeable to tax whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act which is always subject to the final computation of the taxable income by the assessing authority. The instructions contained in the circulars Nos. 6, 9 13 dated 23.12.02, 18.11.03 and 6.12.2004 for the assessment years 2003-04, 2004-05 and 2005-06 respectively which are identical in nature in relation to the deduction of tax at source under Section 192 of the Act provides guidelines for making deduction under Section 80G and 80GG of the Act. The said circular nowhere provides for any guidance for making deduction under Section 80GGA of the Act. None of the impugned orders specifies the relevant condition of any of the aforesaid circulars which had been violated by the petitioner in giving allowance under Section 80GGA of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be affected by the subsequent withdrawal of the approval of the society even with the retrospective effect. Thus, the allowance given to the employee under Section 80GGA of the Act would not be affected by the subsequent withdrawal of the approval of the society. The Supreme Court in Commissioner of Income Tax Vs. Chotatingrai Tea and others 2058 ITR 529 held that once the conditions of allowing the expenditure under Section 35CCA of the Act are satisfied it is no obligation of the employee or the assessee to see the proper utilization of the funds by the institution. It means that deduction from the income on account of the donation made to the association or institution recognized for integral rural development programme is permi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king deduction of tax at source and as such there was no occasion for any order under Section 201 read with Section 201 (1A) of the Act. It may be pertinent to note that the employer while making deduction of tax at source is only required to have a broad picture of the estimated income on which tax is to be deducted. He is not supposed to calculate the income minutely to precession. A similar view was expressed by the Division of the Madhya Pradesh High Court in the case of Gwalior Rayon Silk Co. Ltd. Vs. Commissioner of Income Tax [1983] 140 ITR 0832 and it was further held that where the regular assessment of an employee had been completed the Commissioner of Income Tax, TDS has no jurisdiction under Section 201 of the Act to demand fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
