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TMI Blog2018 (8) TMI 1728X X X X Extracts X X X X X X X X Extracts X X X X ..... 201 of the Act, the Department is treating the same as default under Section 194-H of the Act. Provisions of section 201(1)/201(1A) do not authorize the Department to treat the same default under two provisions. The proceedings under Section 201(1)/201(1A) of the Act for treating the default of the respondent-assessee under Section 194-H amounts to reviewing the assessment order which had attained finality. The inconsistent stand of the Department in assessment proceedings and the proceedings under Section 201 of the Act is wholly erroneous and bad in law - decided in favour of assessee - INCOME TAX APPEAL No. 295 of 2016, INCOME TAX APPEAL No. 19 of 2017 - - - Dated:- 1-8-2018 - Hon'ble Bharati Sapru And Hon'ble Dinesh Kumar Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case) instead of u/s 194-H of the Act therefore the order u/s 201(1)/201(1A) of the Act can not be sustained and therefore quashed? 4. Whether the finding recorded in the assessment order passed u/s 143(3) of the Act can be taken as a ground for deciding the fate of the order passed u/s 201(1)/201(1A) of the Act even when substantively the default of the assessee for non deduction of TDS on certain payments has been decided in favour of the Department by the Tribunal itself? 4. The respondent-assessee is a public limited company engaged in the business of trading of mobile phones, handset, manufacturing trading, servicing, and maintenance of computer hardware etc. 5. The Assessing Officer (hereinafter referred to as A.O. ) cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 194-H of the Act and the respondent-assessee was required to deduct tax at source against the payment made to the regional distributors towards advertisement and sales promotion related services. The C.I.T. (Appeals) upheld the order passed by the A.O. treating the respondent-assessee as assessee in default and passing the order under Section 201(1)/201(1A) of the Act. 8. Aggrieved by the aforesaid order passed by the C.I.T. (Appeals) the respondent-assessee filed an appeal before the Tribunal. The Tribunal had held that the assessment proceedings were completed considering the default of TDS qua Section 194-C of the Act, but in proceedings under Section 201 of the Act, default for the same payment, had been considered under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194-C of the Act and the assessment proceedings were finalized. The assessment order has been upheld by this Court. Now in the proceedings under Section 201 of the Act, the Department is treating the same as default under Section 194-H of the Act. Provisions of section 201(1)/201(1A) do not authorize the Department to treat the same default under two provisions. The proceedings under Section 201(1)/201(1A) of the Act for treating the default of the respondent-assessee under Section 194-H amounts to reviewing the assessment order which had attained finality. The inconsistent stand of the Department in assessment proceedings and the proceedings under Section 201 of the Act is wholly erroneous and bad in law. We, therefore, uphold the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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