2016 (11) TMI 1465

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..... 05-06 to 2010-11 has been included by IRCTC in its annual Profit & Loss account, Balance sheet and their returns of income. In view thereof we see no reason as to why the assessee shall be held to be liable for TDs and disallowance u/s 40(a)(ia). - Decided in favour of assessee.
Pramod Kumar, AM and Mahavir Prasad, JM S.N. Soparkar for the Appellant Sumit Kumar Verma for the Respondent O R D E R Per Bench: 1. These six appeals, pertain to the same assessee, involve a common issue and were heard together. As a matter of convenience, therefore, all these six appeals are being disposed of by this common order. 2. In substance, the short and common grievance, arising in all these appeals, is that the learned CIT(A) erred in upholdi .....

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..... is in further appeal before us. 4. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. 5. The issue in appeal is no longer res integra. A co-ordinate bench of this Tribunal, in assessee's own case in respect of assessment under section 143(3) for the assessment years 2006-07 to 2011-12, has, inter alia, observed as follows :- "8. We have heard the rival contentions and perused the material on record. In our considered view, on merits, the assessee deserves to succeed on these counts in view of the following:- a. The impugned license fee is paid by assessee to IRCTC for awarding licensed rights. Payments cannot be construed for rendering a .....

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..... y right , trade mark, license, franchise cannot fall under its purview. d. Apropos additional ground also respectfully Hon'ble Supreme court judgments Som Prakash Rekhi has laid down parameters as to when a corporation can be called a state for legal and practical purposes. Income Tax law provides some beneficial and relaxing provisions for Govt. local bodies etc. for ease of administration and flexibility. TDS is a mechanism to avoid nonpayment of taxes by payees. Legislature in its superior wisdom has intended that Govt. Bodies will not venture into nonpayment of their income tax, therefore they are exempted from TDS. It is more so as mostly they are Govt. funded, under strict regulatory and financial control and are complimentary arms .....

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