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TMI Blog2022 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... Per Manish Borad : The above captioned appeal at the instance of Assessee is directed against the order of Ld. Pr. Commissioner of Income Tax(Appeals)-1, (in short 'CIT(A)'), Bhopal dated 23.05.2018 which is arising out of the order u/s. 154 r.w.s 200A of the Income Tax Act 1961 (In short the 'Act') dated 23.05.2015 framed by DCIT(CPC). The Assessee has raised following grounds of appeal: 1. The order of the Assessing Officer is bad in law and against the facts of the case. The Ld. CIT(A) erred in maintaining the same. 2. On the facts and in the circumstances of the case, proper and meaningful opportunity had not been allowed to assessee to put up the defense on the issues disputed in appeal, The Ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch interest. Therefore levy of interest may kindly be deleted. 8. That the appellant craves leave to add, alter, and amend or to modify or before the date of hearing. 2. When the case was called for, none was present on behalf of the assessee but there is an application placed on record stating that the written submission filed by the assessee to be considered for adjudicating the appeal. Thus, the case was heard with the assistance of ld. DR and the submissions made by the assessee available on record which includes a paper book containing 42 pages. 3. Facts in brief are that the assessee is a Nationalized Bank and the present appeal is filed by the Nehru Nagar Branch Bhopal of Punjab National Bank. The assessee is required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble Supreme Court in the case of Hindustan Coca Cola Beverage (P) Ltd. vs. CIT, (2007) 293 ITR 226 (SC). 6. Per contra Ld. DR vehemently argued supporting the orders of both lower authorities. 7. We have heard rival contentions and perused the records placed before us. Short issue raised before us is that whether the Ld. CIT(A) erred in treating assessee in default u/s. 201/201(A) and confirming a demand against the assessee for short deduction of tax at ₹ 71,874.69 and interest on short deduction at ₹ 66,681/-. 8. We notice that during Quarter -2 for F.Y. 2007-08 assessee paid/credited interest to Madhya Pradesh State Agro Industries Development Corporation Limited at ₹ 7,75,348/-. The assessee was require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks. It entered into an agreement with 'P' for use of its premises for receipt, storage and dispatch of goods binging to it and paid warehousing charges on which tax. was deducted under section 194C at 2 per cent. The Assessing Officer held that the warehousing charges were in the nature of rent as defined in Explanation to section 194-I and, therefore, tax ought to have been deducted at 20 per cent under the said provisions as against deduction of tax at 2 per cent under section 194C. The Assessing Officer, therefore, having held the assessee to be assessee-in-default for the shortfall in the amount of tax deducted at source, levied interest under section 201 (1A) on the amount of tax alleged to be short-deducted. On appeal, the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand visualized under section 201 (1) should be enforced after the tax deductor has satisfied the officer-ill-charge of TDS that taxes due have been paid by the deductee-assessee. However, this will not alter the liability to charge interest under section 201(1A) till the date of payment of taxes by the deductee-assessee or the liability for penalty under section 271 C. [Para 10] In the instant case, the assessee had paid the interest under section 201 (1 A) and there was no dispute that the tax due had been paid by 'P'. It was Hot disputed that the circular was applicable to the facts situation at hand. [Para 11] Hence, the judgment of the High Court was accordingly, set aside. The appeal was to be allowed. 8. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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