INCOME TAX ACT, 1961

Section 194A

Tax deduction at source under section 194A - Deposits of HIMURJA - TDS liability - Remand of matter

Assessee's case was that CIT(A) was not justified in upholding that the tax was required to be deducted on the deposits of HIMURJA under section 194A. He submitted that the concerned tax authority have hauled up the assessee on account of the account maintained by the party shown as 'HIMURJA' in the financial year 2011-12. He was also penalized on account of 'H.P. Building and other constructions', however, on the said issue, there is no debate since CIT (Appeals) had granted relief to the assessee. Held: Claim of the revenue cannot be allowed because the alternate plea of the assessee relying upon the decision rendered by the Apex Court in the case of Hindustan Coca-Cola Beverage Pvt. Ltd v. CIT (2007) 293 ITR 226 (SC) : 2007 TaxPub(DT) 1452 (SC) was in the context where assessee could demonstrate that deductees had paid tax thereon which evidences were required to be demonstrated and in some cases were available. However in present case, the foundational fact itself is to be established namely whether in the case of 'HIMURJA' was there any legal mandate on facts in terms of the aforesaid notification in pursuance to section 149A(3)(iii)(f) to deduct TDS. Accordingly, matter was remanded back to AO with direction to pass a speaking order in accordance with law.

Relied:Hindustan Coca Cola Beverage Pvt. Ltd v. CIT (2007) 293 ITR 226 (SC) : 2007 TaxPub(DT) 1452 (SC)

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2012-13

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