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TMI Blog2021 (4) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... earing by following principles of natural justice. Ground partly allowed for statistical purpose. TDS u/s 194J - assessee had paid remuneration to the Director including sitting fees for attending the Board Meetings etc.- AR submitted that the provisions to deduct TDS Director sitting fee has been made applicable w.e.f. 1st July, 2012. Prior to that there was no provision in the Income Tax Act, 1961 to deduct TDS on amount paid as Director sitting fees - HELD THAT:- Prima facie after looking at provisions of Section 17 and the concept of Director under the Companies Act and thus has a relationship as an employee to the Company. Besides this, the fees which is termed as sitting fees is the part and parcel of remuneration of the Director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w in not analyzing the eligibility of the appellant for claiming 100% deduction and arbitrarily following the decision in earlier year. 2. That the CIT(A) erred on facts of the case and in law in disallowing an amount of ₹ 2,55,000 on account of payment of director sitting fee by holding that no TDS was deducted thereon. 2.1 That the CIT(A) erred on facts of the case and in law in holding that TDS was deductible under section 192(1) of the Act without appreciating that the directors did not have employer - employee relationship with the appellant. 3. The assessee Company is a public limited company incorporated under the provisions of the Companies Act, 1956 and is engaged in the business of Wire line logging, per forma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 100% in the return income for relevant Assessment Year. The Central Government issued Notification No. SO 627(E) dated 4/8/1999 providing the list of notified industries in the north eastern region. The said Circular also notifies mineral based industry for the purpose of said proviso mentioned in the Circular. The assessee began manufacturing and production of relevant article or thing during Financial Year 2001-02 and is eligible for claiming deduction u/s. 80IB(4) of the Act is not under dispute. The Ld. AR further submitted that the only question which arises is whether the assessee can claiming 100% deduction of eligible provides of Agartala undertaking under the aforesaid Notification. The CIT(A) rejected the claim of the for 100% de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely on the ground that the assessee has omitted to file the appeal or cross objection, the additional grounds raised in the appeal filed by the Revenue are maintainable because ultimately the net result of the assessment proceedings should be correct assessment of the tax liability of the assessee company, the application filed by the assessee company for additional grounds is partly allowed qua grounds No. 1 2, whereas present application qua ground No. 3 is dismissed. 49. In view of our findings returned on the additional grounds raised by the assessee company in A.Ys. 2004-05 and 2007-08 decided in preceding paras, additional grounds No. 1 2 raised in A.Y. 2006-07 by the assessee company being identical in nature are also requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed the same. The Ld. AR submitted that the provisions to deduct TDS Director sitting fee has been made applicable w.e.f. 1st July, 2012. Prior to that there was no provision in the Income Tax Act, 1961 to deduct TDS on amount paid as Director sitting fees. Hence, TDS on the same had not been paid deducted. 9. The Ld. DR submitted that the finding of the CIT(A) is just and proper as the provisions of Section 17 unanimously state that any fee paid to an employee is included the category of salary and there is employer-employee relationship. 10. We have heard both the parties and perused the material available on record. Prima facie after looking at provisions of Section 17 and the concept of Director under the Companies Act and thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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