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TMI Blog2016 (9) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ne more opportunity to the assessee to furnish the relevant details and evidence of payment of tax by the licensee and thereafter reconsider the matter afresh. - I.T. A. Nos. 1434 to 1439/Bang/2015 - - - Dated:- 29-7-2016 - Shri Vijay Pal Rao, Judicial Member And Shri Inturi Rama Rao, Accountant Member Appellant By : Shri Tulajappa Kalburgi, Advocate Respondent By : Shri Sunil Kumar Agarwal, JCIT ORDER Per Bench These six appeals by the assessee are directed against the composite order of Commissioner of Income Tax (Appeals), Hubli dt.31.08.2015 arising from the order passed under Sections 206C r.w.s. 201(1A) of the Income Tax Act, 1961 (in short 'the Act') for the Assessment Years 2007- 08 to 2012-13. 2. The assessee has raised common grounds in these appeals as under : (1) That the learned Respondent is erred in confirming the order of Income Tax Officer (TDS) Hubli without laying the due emphasis on explanation to section 191 which provides that primary liability of payment of income tax is on the assessee to whom the income belongs. (2) The learned Respondent is not justified in treating the appellant as an assessee in default onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principles of natural justice. (f) That sub-section 6 and 6A covers all situations and contingencies, and makes the liability absolute, limited on deductor. The sub-section does not provide for issue of notices, assessment, collection or anything connected with the imposition, levy and collection of the tax. (g) Section (4) of the Income tax Act is the charging section and according to said section, tax is levied upon assessee depending upon income accrued in the previous year and not upon the income earned by other persons. Invoking the provisions of section 206C(6) and 206C(6A) is erroneous and overrides the provisions of charging section. (h) The definition of Railway administration does not make railway as legal entity or judicial person as it held by the Supreme Court in State of Kerala v. G.H.S Railway AIR 1976 SC 2538 equivalent citations: 1977 SCR (1) 419. (5) That the learned Respondent has failed to appreciate the fact that the provisions of 206C is only machinery provisions and hence demanding the Tax by invoking the provisions of sub-section (6) from the licensor for failure to collect the tax from licensee is erroneous. (6) That the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention in Appendix X(e). Pending disposal, the appellant respectfully prays this Hon'ble Tribunal may please grant Order for waiver of pre deposit till the appeal is decided. 3. The brief facts giving rise to the controversy are that a spot verification was done by the Assessing Officer on 16.01.2013 in the office of Senior Divisional Commercial Manager, South Western Railway, Hubli Division, Keshwapur, Hubli. It was found during the verification that the receipts of the assessee office includes parking lots lease charges. On query by the Assessing Officer the officials of the assessee express their unawareness of the provision to collect tax at source on such receipts. Therefore a letter was issued by the Assessing Officer to the assessee to furnish the particulars of such premiums, date of receipt, amount received, tax collected at source and deposit of the same to the Govt. of India account, return filed, etc. In response the assessee furnished the details of the total receipts from parking lots/license fees for the F.Ys 2006-07 to 2011-12 relevant to the Assessment Years 2007-08 to 2012- 13. Since no tax at source was collected by the assessee on such receipts, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7059143 Section 206C(1C) mandates the collection of tax by the person who grants the license / lease and receive the amount or debit the amount payable by the licensee at the rate prescribed under this section. For ready reference Section 206C(1C) of the Act is quoted as under : 206C (1C) Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as licensee or lessee ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish the relevant details and evidence to show that the licensees have paid the tax on the income from parking lots. It is pertinent to note that except one year i.e. A.Y. 2012-13, all other five assessment years are past period and since the earlier year licensee at relevant point of time might have left and discontinued to operate the parking lots therefore, it was very difficult for the assessee to collect the information and evidence from those licensees within such short period allowed by the Assessing Officer. Having regard to the facts and circumstances of the case, where relevant details of the payment of tax by the licensee pertains to the earlier five years, we are of the view that the assessee was not given sufficient time to do the needful. Accordingly, in the interest of justice we set aside the impugned orders of the authorities below and direct the Assessing Officer to give one more opportunity to the assessee to furnish the relevant details and evidence of payment of tax by the licensee and thereafter reconsider the matter afresh. 8. In the result, the appeals of the assessee are allowed for statistical purpose. Order pronounced in the open court on the 29th da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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