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TMI Blog2015 (11) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... A), who has rightly held the assessee in default u/s 201(1) & 201(1A) of the Act. We find no infirmity in the order of the ld. CIT(A) subject to the rate of interest which the assessee in ground No.3 has agitated should have been 10.30% instead of 11.33%. The AO is directed to verify the rate of interest as per law whether it is 10.30% or 11.33%. Accordingly, the matter is set-aside to the file of the AO only to the extent of determination of rate of TDS applicable ie. @ 10.30% or 11.33%. - I.T.A. No.30(Asr)/2014 - - - Dated:- 17-3-2015 - SH. A.D.JAIN, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER For the Appellant : Sh.Prikshit Aggarwal, CA For the Respondent : Sh.Tarsem Lal, DR ORDER PER B.P.JAIN,AM: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.33% even when the correct rate of TDS applicable was 10.30%. This ground is without prejudice to claim of the appellant on merits. 4. That on facts, circumstances and legal position of the case before disposing of the appeal, the worthy CI(A) has erred in not considering the introduction of Ist Proviso to S.201(1) by Finance Act, 2012 even when the said amendment is curative in nature and is applicable retrospectively and the insertion of the said proviso was on statute book when the order was passed by worthy CIT(A). 5. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 3. As regards grounds No. 2 3, the brief facts of the case are that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the AO for creation of demand of ₹ 5,43,840/- alongwith other demands raised u/s 201(1) 201(1A) and u/s 194, 194A, 194C, 194I 194J of the Act. The Ld. CIT(A) vide page 18 of his order in para 6.2. confirmed the action of the A.O. 5. The Ld. Counsel for the assessee with regard to ground no.2 invited our attention to the provisions of section 196 of the Act and argued that the assessee is covered u/s 196(i) of the Act since the amount was payable to the Government and therefore, no tax at source was deductible at all. The ld. Counsel for the assessee invited our attention to page 9 of CIT(A) s order where the submissions were made before the ld. CIT(A), which for the sake of convenience are reproduced hereinbelow: 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, when the claim of interest on accrual basis in the revised balance sheet has been considered by AO to be not part of accounts of the appellant, the AO was unjustified in holding that the appellant has failed to deduct TDS on interest provision created in revised balance sheet. 7. It is further submitted that PAIC is a company registered under Companies Ac, 1956. Even if it is held that the appellant was required to deduct TDS on accrual of interest to PAIC, the rate should have been 10.3% as against applied by AO at 11.33% . This is so because the payment/credit of interest to PAIC ( a company) did not exceed the threshold limit of ₹ 1 crore during the year. Hence, even if the appellant is held to be liable to deduct TDS, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) A committee consisting of the following is constituted to approve the schemes for which the separate fund created above will be utilized. The utilization of fund subject to specific approvals given by the committee for the schemes and the amounts to be credited therefore. 1. Financial Commissioner, Development Punjab. 2. Managing Director, Punjab Agro Industries Corpn. Ltd. 3. Secretary, Punjab Mandi Board. 4. Secretary, Punjab Rural Development Board. 5. Addl. Managing Director, PAGREXCO An order dated 20.01.1998 passed by the Government of Punjab in regard to above is attached. 3. Thereafter, more funds were ploughed in this corpus fund by State Government, the above referred organizations and other bodies. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t help the assessee to cover the issue u/s 196(i) of the Act. It has also been conceded before the ld. CIT(A) that Punjab Agro Food Grains Corpn. Ltd., has also not declared the said interest income in their books of account and therefore, judicial pronouncement in the case of Hindustan Coca-Cola will not be available to the assessee as held by the ld. CIT(A). The relevant findings of ld. CIT(A) at page 18 are reproduced for the sake of convenience as under: It has been submitted by the assessee that the Punjab Agro Food Gains Corporation Limited has provided loan/funds of ₹ 6 crores to the assessee on which no interest was ever paid by the assessee. It has also been submitted that the assessee has also not provided any interest o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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