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TMI Blog2015 (7) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... raised u/s 201(1) 201(1A). - ITA No. 342, 343 & 344/JP/2013 - - - Dated:- 20-7-2015 - SHRI R.P. TOLANI, JM And SHRI T.R. MEENA, AM For the Appellant : Shri Dilip Sharma (JCIT) For the Respondent : Shri Siddarth Ranka (Advocate) ORDER PER: R.P. TOLANI, J.M. These are three appeals filed by the Revenue against three separate orders dated 17.01.2013 passed by the learned CIT (A), Kota for A.Y. 2006-07, 2009-10 and 2010-11. The common grounds raised by the revenue are as under :- 1. The ld. CIT (A) has erred in holding that the assessee deductor was not liable for making TDS u/s 194C of the I.T. Act only because the deductee (RSAMB) is registered u/s 12A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Contribution (to RSAMB) expenses ₹ 1,22,00,000/- F.Y. 2009-10. Payment to RSAMB, Baran ₹ 55,80,387/- Contribution (to RSAMB) expenses ₹ 20,00,000/- The AO was of the view that the aforesaid payments were covered u/s 194C and 194J of the I.T. Act, 1961 and the TDS was required to be deducted but the responsible person failed to do so. The AO issued show cause notices dated 02.03.2010 and 31.08.2010 in this regard. In response, the ld. A/R of the assessee vide letter dated 15.09.2010 filed reply stating therein that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t/deductee. 2) M/s. RSAMB has been granted registration u/s 12A and is filing its return regularly and there was nil tax liability in the case of RSAMB, therefore, no tax can be recovered from the assessee. 3) In the instant case, the assessee claimed that there was no contractor-contractee (awarder) relationship between the assessee appellant and M/s. Rajasthan State Agricultural Marketing Board. There was no work awarded by the assessee. No powers of supervising the work were under the control of the assessee appellant. 4. The ld. CIT (A) after considering the submissions of the assessee, deleted the demand raised by the A.O. by observing at page nos. 15 to 17 of his order as under :- The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced below :- In the case of income in respect of which provision is not made under this Chapter for deducting income-tax at the time of payment, and in any case where income-tax has not been deducted in accordance with the provisions of this Chapter, income-tax shall be payable by the assessee direct. Explanation: For the removal of doubts, it is hereby declared that if any person including the principal officer of a company (a) Who is required to deduct any sum in accordance with the provisions of this Act ; or (b) Referred to in sub-section (1A) of section 192, being an employer, does not deduct, or after so deducting fails to pay, or does not pay, the whole or any part of the tax, as re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be there only when recipient of income has not paid tax. Therefore, recovery provisions under section 201(1) can be invoked only when loss to revenue is established, and that can only be established when it is demonstrated that the recipient of income has not paid due taxes thereon. In the absence of the statutory powers to requisition any information from the recipient of income, the assessee is indeed not always able to obtain the same. The provisions to make good the short fall in collection of taxes may thus end up being invoked even when there is no shortfall in fact. On the other hand, once assessee furnishes the requisite basic information, the Assessing Officer can very well ascertain the related facts about payment of taxes on in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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