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TMI Blog2014 (12) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... d when the assessee has accounted for only the commission, the question of the assessee deducting the tax at source does not arise - Decided against Revenue. - ITA Nos. 408 to 410/Hyd/2014 - - - Dated:- 19-12-2014 - J. Sudhakar Reddy, AM And Saktijit Dey, JM,JJ. For the Appellant : Shri Rajat Mitra, DR For the Respondent : Shri V Raghavendra Rao, Adv. ORDER Per J Sudhakar Reddy,AM. All these appeals filed by the Revenue are directed against the common order passed on 16.12.2013 by the ld CIT (A)-II, Hyderabad u/s 201(1) and 201(1A) and an order passed by the CIT (A) on 17.12.2013 cancelling the penalty levied u/s 221 of the Act in connection with the orders passed u/s 201(1). 2. As the issues in all these appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciate that the unpaid demand of ₹ 2,35,02,810/- represented TDS made out of the payments to sub-contractors and that deductor despite having deducted such TDS had not remitted the same into Govt. account. 3. The ld CIT (A) erred in equating the demand on account of TDS deducted by the assessee with the demand arising as a tax on income of the assessee itself. 4. The ld CIT (A) failed to appreciate that the reasonable cause of financial constraints could have been applicable only to the own funds of the assessee and not to the sums comprising of the TDS of income of other persons, as the assessee was only a custodian of such funds. 5. The ld CIT (A) erred in relying on the decision in the case of CIT vs. Munni Lal Co.(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement reads as under: 7. The RPL shall present the employer (THDC) with running account bills in a timely manner. The amounts due after deducting the following enumerated below from the gross amount of running account bills shall be passed on to RPL upon the employer releasing the due monies: i) All taxes/duties/levies as may be applicable including Income tax deducted at source. ii) The value of materials etc., if any, supplied by the Principal or the Employer: iii) Amounts deductible towards Mobilization Advance, Machinery Advance, including interest thereon, Secured Advance deposits, commissions etc. iv) All other deductions deductible under the original contract and this agreement. 8. The Principal (JV) shall transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid any amount to M/s Rithwik Projects Ltd and when the assessee has accounted for only the commission, the question of the assessee deducting the tax at source does not arise. Under the circumstances, we find no merit in the appeal of the Revenue. Thus, we dismiss appeal in ITA No.408/H/2014 wherein the Commissioner had cancelled the order passed u/s 201(1). 10. Coming to ITA No.409/H/2014, in view of our decision in ITA No.408/H/2014, no interest u/s 201(1A) can be levied as this is a consequential levy and hence we dismiss this appeal of Revenue also. 11. Similarly in ITA No.410/H/2014, penalty u/s 221 was levied for nonpayment of TDS demand raised u/s 201(1). In view of the facts, we have upheld the order of the first appellate a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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