ITO(TDS), Meerut V. U.P. State Road Transport Corporation, Meerut

ITA 2518/DEL/2010

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3544 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 19-04-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 26-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NOS.2517 & 2518/DEL/2010 ASSESSMENT YEARS : 2008-09 & 2009-10 ITO (TDS), MEERUT. VS. UP STATE ROAD TRANSPORT CORPORATION, BHAINSALI GROUND, MEERUT. PAN: AAATU300M ASSESSEE BY : MS SWETA MITTAL, CA DEPTT. BY : SHRI UMESH CHAND DUBEY, SR.DR DATE OF HEARING : 19.04.2017 DATE OF PRONOUNCEMENT : 20.04.2017 ORDER PER R.S. SYAL, VP: THESE TWO APPEALS BY THE REVENUE RELATING TO THE FINANCIAL YEARS 2007-08 AND 2008-09 ARE DIRECTED AG AINST THE COMMON ORDER DATED 02.03.2010 PASSED BY THE CIT(A). ITA NOS.2517 & 2518/DEL/2010 2 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THESE AP PEALS IS AGAINST THE DIRECTION GIVEN BY THE LD. CIT(A) FOR DEDUCTION OF TAX AT SOURCE U/S 194C AS AGAINST U/S 194I, FROM THE PAYMENTS MADE BY THE ASSESSEE FOR HIRING OF BUSES. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE ON THE FAC TUAL ASPECTS THAT THE ASSESSEE PAID FOR HIRING OF BUSES AND MADE DEDUCTIO N OF TAX AT SOURCE U/S 194C @ 2%. THE ASSESSING OFFICER, IN HIS ORDER U/S 201(1A), TREATED SUCH PAYMENT AS RENT AND DIRECTED TO DEDUCT TAX A T SOURCE U/S 194I AT 10%. THE ACTION OF THE AO WAS OVERTURNED IN THE FI RST APPEAL. IT IS SEEN THAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE AGRA TRIBUNAL IN THE CASE OF UPSRTC, ALIGARH IN ITA NO.52 & 53/AGRA/ 2011. THE TRIBUNAL VIDE ITS ORDER DATED 15.11.2011 HAS UPHELD THE DEDUCTION OF TAX AT SOURCE IN SIMILAR CIRCUMSTANCES U/S 194C. A COP Y OF THE SAID ORDER IS PLACED AT PAGE 58 OF THE PAPER BOOK. IT HAS BEEN B ROUGHT TO OUR NOTICE THAT THE HON'BLE ALLAHABAD HIGH COURT IN CIT (TDS) VS. UPSRTC IN ITA NO.556 & 557 OF 2011 HAS ALSO TAKEN SIMILAR VIE W. A COPY OF SUCH ITA NOS.2517 & 2518/DEL/2010 3 JUDGMENT DATED 11.08.2014 HAS BEEN PLACED ON RECORD . IN VIEW OF THE FOREGOING DISCUSSION, WE ARE SATISFIED THAT THE LD. CIT(A) WAS JUSTIFIED IN DIRECTING THE DEDUCTION OF TAX AT SOURCE U/S 194C. 4. IN THE RESULT, BOTH THE APPEALS STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.04.2017. SD/- SD/- [SUCHITRA KAMBLE] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 20 TH APRIL, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT NEW DELHI.