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TMI Blog2013 (6) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is in default u/s 201(1)/201(1A) of the Act. As per the learned counsel for the assessee, the CIT(A) has deleted the liability created u/s 201 but has upheld the liability of interest u/s 201(1A) against which the assessee is in further appeal before the Tribunal 3. Rival contentions have been heard and record perused. During the assessment years under appeal the ITO TDS found that the assessee made payment to the various Government Agencies without deducting Tax at Source u/s 194C. Thus he treated the Organization as assessee in default and accordingly created the demand u/s 201(1) and interest u/s 201(1A) against the assessee the details of same is as under:- S.No. Name of the Government Agencies F.Y. Amount paid Amount of Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) on short payment is concerned, interest has to be charged on the short payment of the tax till the date deductee has made the payment. Similar view is held by the Hon'ble Supreme Court in the case of Hindustan Coco Cola Beverages Pvt. Ltd., Vs. CIT (2007) 293 ITR 226 (SC) as under:- The Circular No. 275/201/95-IT(B) , dated 29- 01-1997 issued by the Central Board of Direct Taxes would put an end to the controversy. The circular declares that no demand visualized under section 201(1) should be enforced after the tax deductor has satisfied the officer-incharge of TDS that taxes due have been paid by the deductee- appellant. However, this will not alter the liability to charge interest under section 201 (1A) till the date of payment of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the payment made to these Nodal Agencies consequent thereto the Ld. A.a. and Ld.CIT (A) erred in' treating the assessee as assessee in default. (iv) In the case of U.P. State Industrial Development Corporation Ltd. Vs. ITO (2004) 89 TTJ (Lucknow) 669. It was held that :- We have carefully considered the facts and circumstances relating to this matter, the entire material including the case laws to which our attention was invited and the rival submissions. After going through the agreement dated ih August 1989 entered into between the assessee and the NIDC, the relevant circular letters and the case laws cited before us, we find sufficient force in the contention raised by Shri S.K. Garg on behalf of the assessee. The Department' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the payment to the contractor on behalf of the assessee by deducting the Tax at Source under section 194C of the I.T. Act., which is duly deposited these Nodal Agencies in the Credit of Central Government on behalf of appellant. Thus it is prayed the liability of interest u/s 201(lA) upheld by the Ld. CIT (A) be deleted. 6. On the other hand, the learned Sr. DR relied on the orders of the authorities below and contended that the assessee has not deducted tax at source u/s 194C, therefore, the CIT(A) was justified in treating the assessee in default u/s 201(1A). 7. We have considered the rival submissions, carefully gone through the orders of the authorities below and find from record that the assessee is a Government Officer who is respons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o M.P. Housing Board and M.P. Laghu Udyog Nigam Limited, who in turn got the building constructed through contractors. Mere transfer of fund by the assessee to M.P. Housing Board and M.P. Laghu Udyog Nigam Limited will not attract the liability u/s 194C since neither M.P. Housing Board nor M.P. Laghu Udyog Nigam Limited is a contractor or sub-contractor. As per the learned counsel, M.P. Housing Board and M.P. Laghu Udyog Nigam Limited have got the construction work done through the contractors and due taxes have been deducted out of the payments made to the respective contractors u/s 194C. Thus, the M.P. Housing Board and M.P. Laghu Udyog Nigam Limited were merely acting as agent of the assessee and due taxes have been deducted at source by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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