9911796707
TMI Blog2015 (11) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... ground which are listed herein below: "1. On the facts and in the circumstances of the case and in law, the worthy CIT(A) in appeal No.167/2012-13/CIT(A)/Jal. Vide order dated 08.11.2013 has erred in passing that order in contravention of the provisions of section 250(6) of the Income Tax Act, 1961. 2. That on the facts and circumstances of the case, worthy CIT(A) vide para 6.2 of his order, has erred in confirming the action of AO wherein the AO had erroneously held that the appellant was liable to deduct tax at source u/s 194A on provision interest of Rs. 48,00,000/- to Punjab Agri Export Corporation Limited and has thereby erred in passing the order u/s 201(1) to that extent and creating a demand of Rs. 5,43,840/- on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant to AY 2008- 09. Later on, it was found by ITO (TDS)-II, Chandigarh that the jurisdiction over TAN of the assessee was with ITO(TDS)-I, Jalandhar. The information in respect of non/short deduction of TDS was, therefore, passed on to the ITO (TDS)-1, Jalandhar by ITO (TDS)-II Chandigarh vide her office letter No. ITO (TDS -II) CHD/2011-12/18673 dated 01.03.2012 for taking necessary action in the case of the assessee. Accordingly, the ITO (TDS)-1, Jalandhar vide her office letter No. ITO/TDS-1/JAL/2011-12/964 dated 21.03.2012 issued a show cause notice to the assessee to verify the compliance of TDS/TCS provisions. After necessary verification, the AO i.e. ITO (TDS)-1, Jalandhar has passed an order u/s 201(1)/201(1A) of the Act dated 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Board of Management of the appellant and re-working and reaudit was ordered. 4. In re-working and re-audit the auditor forces the appellant to provide for interest on above loan at minimum 8% p.a. Hence, interest of Rs. 48 lacs was provided in books. This balance sheet was signed on 13.10.2009. The year in question had already closed much earlier and the appellant had no chance to provide for TDS on this accrual transaction in the books. 5. Since, the interest itself was neither paid nor accrued in original balance sheet finalized during the year, the appellant was not required to provide for TDS u/s 194J of the Act. Further, when the revised balance sheet was finalized much after the close of the year in question, the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e: "1.We are a government company and have been promoted by the State Government of Punjab. The original promoters' equity in our organization was contributed on 50-50 basis by the Punjab Agro Industries Corporation Ltd. (PAIC) AND Punjab Mandi Board. 2. A separate fund of Rs. 5 crores (Rs.2.5 crores each was contributed by Punjab Mandi Board and Punjab Agro Industries Corporation Ltd.) was created. PAIC contributed its share out of the amount/loan provided by Punjab Rural Development Board. The fund was to be kept in a separate account to be called "Punjab Agri Promotion and Development Account." It had following further conditions. i) This account will be operated by a nominee each of the Punjab Agro Industries Corporation Limited a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Punjab and any income arising out of it belongs to the government of Punjab." 7. On the other hand, the ld. DR argued that nothing has been brought on record by the assessee or the ld. Counsel for the assessee that the amount payable is to the Government and no documentary evidence in this regard has been placed on record and therefore, the assessee is not covered u/s 196(i) of the Act, as argued by the ld. Counsel for the assessee. In the rejoinder, the ld. Counsel for the assessee argued that funds are provided by the Government being Nodal agency to the payee and therefore, interest is payable to the Govt. only and therefore, no tax at source is required to be deducted and the assessee is covered u/s 196(i) of the Act. 8. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f account as their income meaning thereby that the benefit of the judicial pronouncement in the case of Hindustan Coca-Cola will also not be available to the assessee. In these facts and in the circumstances of the case, I am of the opinion hat the AO is justified in creating demand of Rs. 5,43,840/- alongwith interest in the case of the assessee for not deducting TDS as per provisions of section 194 of the Act. In the result, ground of appeal no.2 taken by the assessee is dismissed." 9. In the facts and circumstances of the case, we find no infirmity in the order of the ld. CIT(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 intere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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