9911796707
TMI Blog2024 (11) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 1109 - DELHI HIGH COURT] is prospective. HELD THAT:- On appraisal of the factual matrix and the position of law, we find considerable force in the plea raised on behalf of the Assessee. The assessee has successfully demonstrated the existence of bona fide belief. This demonstration on standalone basis enables us to exonerate the assessee from the clutches of Section 201(1) and 201(1A). We however further find that the operation of the judgment in Rajesh Projects (supra) have been made prospective as mentioned in paragraph 20 of the judgment. The cause of action under Section 201(1)/201(1A) in pursuance of the judgment of the Hon ble Delhi High Court is thus not available to the Revenue for A.Y. 2012-13 in question. We also find that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted at the outset that the AO has passed two orders under Section 201(1)/201(1A) dated 22.02.2013 and 29.03.2019 for A.Y. 2012-13 in question. The impugned order passed under Section 201(1)/201(1A) dated 29.03.2019 arises in the second round of proceedings under the same provisions of the Act. The first order was also passed under Section 201(1)/201(1A) vide order dated 22.03.2013 pursuant to certain defaults coming to the light of the Department in the survey proceedings under Section 133A of the Act. In the second round, the AO has yet again invoked provisions of Section 201(1) 201(1A) for default in non-deduction of TDS by the Assessee on payments made to NOIDA Authorities towards lease rents. In this regard, the ld. counsel submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the meaning of rent under Section 194-I of the Act. The ld. counsel submitted that based on legal interpretation made by the NOIDA Authority towards non applicability of the provisions of Section 194-I on payments of lease rentals, the assessee has not deducted TDS in good faith. It is only after the enunciation of law by the Hon ble Delhi High Court, the true position of law has come to surface. Under the circumstances, where the applicability of the judgment rendered by the Hon ble Delhi High Court has been made prospectively, the assessee should not be embroiled with the provisions of Section 201(1)/201(1A) at this belated stage. 4. The ld. counsel further submitted that in the instant case where the order under Section 201(1)/201(1A) wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a second round of proceedings under the same provisions; (iii) the applicability of the observations and conclusions in Rajesh Projects (surpa) is prospective. The Hon ble High Court has visualized the difficulties of the tax payers and made the operation of judgment prospective in its wisdom and therefore, the cause of action if any, arising from Rajesh Projects (supra) is not available to the Revenue in A.Y. 2012-13 in question. 9. On appraisal of the factual matrix and the position of law, we find considerable force in the plea raised on behalf of the Assessee. The assessee has successfully demonstrated the existence of bona fide belief. This demonstration on standalone basis enables us to exonerate the assessee from the clutches of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
