Special Deputy Collector (Land Acquisition), Hyderabad V. Income Tax Officer, Ward-14(2), , Hyderabad

ITA 1325/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6781 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 17-03-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 28-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 194C; 201; 194LA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND LAXMI P RASAD SAHU, ACCOUNTANT MEMBER ITA NO. 1325 /H/20 1 7 ASSESSMENT YEAR: 2009 - 10 SPECIAL DEPUTY COLLECTOR (LAND ACQUISITION) , HYDERABAD. PAN A PTPK 1361E VS. INCOME - TAX OFFICER, WARD 14(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: S HRI MOHD. AFZAL REVENUE BY: S HRI ROHIT MUJUMDAR DATE OF HEARING: 17 /0 3 /2021 DATE OF PRONOUNCEMENT: 07 / 0 4 /2021 O R D E R PER L.P. SAHU, A.M. : T H IS APPEAL FILED BY THE ASSESSEE I S DIRECTED AGAINST CIT( A ) - 8 , HYDERABADS ORDER DATED 17 / 0 4 /201 7 INVOLVING PROCEEDINGS U/S 201(1A) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT A S PER THE ORDER PASSED U/S 201(1A) OF THE A CT, THE ASSESSEE DEDUCTOR IS A GOVERNMENT DEPARTMENT AND HAS ACQUIRED LAND FOR ITA NO. 1325 /H YD/ 20 1 7 SPECIAL DEPUTY OFFICER (LAND ACQUISITION), H YD. : - 2 - : INTERNATIONAL AIRPORT IN S HAMSHABAD , HYDERABAD AGAINST WHICH HAS PAID LAND ACQUISITION COMPENSATION. FROM THE INFORMATION FILED SUBSEQUENT TO THE INSPECTION, THE AO NOTICED THAT THE ASSESSEE DEDUCTOR HAD PAID LAND ACQUISITION COMPENSATION AND DEDUCTED TDS U/S 194LA OF THE ACT, BUT REMITTED BELATEDLY TO THE GOVERNMENT ACCOUNT. HE FURTHER OBSERVED THAT THE ASSESSEE DEDUCTOR HAD MADE PAYMENTS ON ACCOUNT OF ADVERTISEMENT TO M/S CATAL YSIS DEDUCTED TDS U/S 194C AND REMITTED INTO GOVERNMENT ACCOUNT. HE, THEREFORE, CALCULATED INTEREST PAYABLE U/S 201(1A) RS. 4,76,851/ - . 3. WHEN, THE ASSESSEE PREFERRED AN APPEAL AGAINST THE ORDER OF AO, THE CIT(A) CONFIRMED THE ORDER OF AO PASSED U/S 201 (1A) OF THE ACT. 4. BEFORE US, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE THEN LAND ACQUISITION OFFICER BY MISTAKE HAD DEDUCTED TAX AT SOURCE AGAINST THE PAYMENTS MADE TO THE PARTIES BUT REMITTED THE SAME TO THE CREDIT OF THE CENTRAL GOVT. AFTER THE S TIPULATED TIME. HE SUBMITTED THAT THE THEN LAND ACQUISITION OFFICER OUGHT NOT TO HAVE DEDUCTED THE INCOME TAX IN RESPECT OF PAYMENTS MADE TOWARDS THE AGRICULTURAL LAND AS THEY DO NOT COME UNDER THE PURVIEW OF IT AS PER SECTION 194LA OF THE IT ACT. HE CONT ENDED THAT THE LEARNED ITO DID NOT CONSIDER THE SUBMISSION OF THE A SSESSEE AND ITA NO. 1325 /H YD/ 20 1 7 SPECIAL DEPUTY OFFICER (LAND ACQUISITION), H YD. : - 3 - : PROCEEDED WITH IMPOSING OF INTEREST U/S 201(1A) OF THE ACT, WHICH IS NOT PROPER AS PER LAW. 5. THE LD. DR, ON THE OTHER HAND RELIED ON THE ORDERS OF REVENUE AUTHORITIES. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE ORDERS OF REVENUE AUTHORITIES. AS SUBMITTED BY THE LD. AR OF THE ASSESSEE, THE LAND ACQUIRED ARE AGRICULTURAL LANDS IN NATURE, THEREFORE, THE PROVISIONS OF SECTION 194LA ARE NOT ATTRACTED TO THE PAYMENTS MADE TO THE LAND OWNERS. WE, THEREFORE, REMIT THE MATTER BACK TO THE FILE OF AO WITH A DIRECTION TO DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSE E IN THE MATTER. THE GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 7 TH APRIL , 2021 . SD/ - SD/ - (S . S . GODARA) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 7 TH APRIL , 20 2 1 . KV ITA NO. 1325 /H YD/ 20 1 7 SPECIAL DEPUTY OFFICER (LAND ACQUISITION), H YD. : - 4 - : C OPY TO : 1 SPECIAL DEPUTY OFFICER (LAND ACQUISITION) , C/O MOHD. AFZAL, ADVOCATE, 11 - 5 - 465, SHERSONS RESIDENCY, FLAT NO. 402, CRIMINAL COURT ROAD, RED HILLS, HYDERABAD 500 004. 2 IT O , WARD 14(2) (TDS), IT TOWERS, HYDERABAD . 3 CIT (A) 8, HYDERABAD 4 CIT(TDS) , HYDERABAD. 5 ITAT, DR, HYDERABAD 6 GUARD FILE.