Appeal Details
Counselvise Citation
[2016] 131 COUNSELVISE.COM (IT) 5608 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 10 month(s) 19 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-11-2016
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
05-10-2016
Assessment Year
2014-2015
Appeal Filed On
02-01-2015
Judgement Text
ITA NO. 4/IND/2015 DALY COLLEGE 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .., ..!', #$ # !% BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER I.T.A. NO. 4/IND/2015 ASSESSMENT YEAR: 2014-15 M/S DALY COLLEGE INDORE TAN BPLT 00735A :: APPELLANT VS DCIT TDS INDORE :: RESPONDENT REVENUE BY SHRI MANJIT SACHDEVA & SHRI AVINASH GOUR ASSESSEE BY SHRI MOHD.JAVED ! ' #$ DATE OF HEARING 5.10.2016 %&'( #$ DATE OF PRONOUNCEMENT 21.11.2016 * O R D E R PER SHRI D.T. GARASIA, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-I, INDORE, DATED 29.9.201 4 ON THE FOLLOWING GROUNDS :- ITA NO. 4/IND/2015 DALY COLLEGE 2 (I) THE LEARNED CIT(A) ERRED IN CONFIRMING THE STAND OF THE ASSESSING OFFICER IN TREATING THE PAYMENT MADE TO AUFKOLAREN EVENT MANAGEMENT LLP AS FOR PROFESSIONAL SERVICES AND THEREBY LEVYING THE LIABILITY OF DEDUCTION OF TDS UNDER SECTION 194J OF THE INCOME TAX ACT. (II) THE LEARNED CIT(A) ERRED IN CONFIRMING THE STAND OF THE ASSESSING OFFICER IN TREATING THE PAYMENT MADE TO J.D. EVENTS AS FOR PROFESSIONAL SERVICES AND THEREBY LEVYING THE LIABILITY OF DEDUCTION OF TDS UNDER SECTION 194J OF THE INCOME TAX ACT. (III) THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE SERVICES PROVIDED BY THE SAID PARTIES WERE OF CONTRACTUAL NATURE AND WERE NOT ANY PROFESSIONAL SERVICES AND AS SUCH THE TDS WAS ITA NO. 4/IND/2015 DALY COLLEGE 3 RIGHTLY DEDUCTED @ 1% AND/OR 2% AS SPECIFIED UNDER SECTION 194C OF THE INCOME TAX ACT. (IV) THE DEMAND LEVIED OF TDS UNDER SECTION 194J IS NOT BASED ON THE FACTS OF THE CASE AND IS UNWARRANTED AND NEEDS TO BE DELETED. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE DEDUCTOR TRUST IS ENGAGED MAINLY IN THE ACTIVITY OF IMPARTING EDUCATION. APART FROM ITS MAIN OBJECT INSTITUTE ALSO I MPARTS TRAINING AND COACHING IN VARIOUS FIELDS SUCH AS GAMES, HORSE RIDING, SHOOTING, NATURE STUDIES AND EXPEDITION S IN JUNGLES BY WAY OF OUTBOUND LEARNING PROGRAMMERS, HILL Y TERRAIN, RIVER WATER RAFTING AND MANY MORE ETC. TO ITS STUDENTS BY HIRING SERVICES OF THE EXPERTS OF THE R ESPECTIVE FIELDS. THE ASSESSEE APPLIED IN FORM 13 FOR LOWER DED UCTION CERTIFICATE U/S197 OF THE ACT. ON PERUSAL OF THE APPLI CATION IT IS SEEN THAT THE DEDUCTOR HAD DEDUCTED TDS @ 2% ON VARIOUS PAYMENTS CONSIDERING THEM TO BE CONTRACTUAL ITA NO. 4/IND/2015 DALY COLLEGE 4 OBLIGATION U/S 194C WHEREAS SINCE THESE PAYMENTS WER E MADE TO THE PROFESSIONAL AND TECHNICAL EXPERTS, THEREFO RE, THE REQUIRED RATE OF DEDUCTION OUGHT TO HAVE BEEN 10% U/S 194J OF THE ACT. THEREFORE, AFTER HEARING THE ASSESSEE THE ASSESSING OFFICER HELD THAT THE ASSESSEE HAS MADE SHORT DEDUCTION IN CASE OF TWO PARTIES, NAMELY, J.D. EVENTS AND AUFKOLAREN MANAGEMENT LLP. 3. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT J.D. EVENTS AND AUFKOL AREN MANAGEMENT LLP ARE IN THE BUSINESS OF FUND MANAGEMENT. THEY BOTH HAVE PROVIDED MANAGERIAL SERVICES TO THE ASSESSEE AND THEY HAVE NOT PROVIDED MULTIPLE SERVICES LIKE PROVIDING HOTEL, DELEGATE FEE, TRANSPORT AND GUIDE IN CASE OF FIRST PARTY OR PROVIDING DECORATION, TENT, LIGHT, SOU ND FOR CONDUCTING ANNUAL ODA WEEK IN CASE OF SECOND PARTY BUT ENSURED CO-ORDINATION OF EACH OF THOSE SERVICES FOR SUCCESSFUL ORGANISATION OF SUCH EVENTS THROUGH USE OF ITA NO. 4/IND/2015 DALY COLLEGE 5 MANAGERIAL SKILLS AND SERVICES. HENCE, THESE TWO PAYMEN TS SQUARELY FALL UNDER THE DEFINITION OF TECHNICAL SERVIC ES AS THE SAME INCLUDES MANAGERIAL SERVICES ALSO. THEREFORE , THE LEARNED CIT(A) WAS OF THE VIEW THAT THEY ARE LIABLE TO D EDUCT TAX @ 10%. 4. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN RESPECT OF PAYMENT OF RS. 1,12,700/- MADE TO AUFKOLAREN EVENT MANAGEMENT LLP FROM THE DETAILS OF PAYMENT, THE PAYMENT OF RS.75,60 0/- TOWARDS HOTEL ACCOMMODATION ON WHICH NO TDS ARISES. IN RESPECT OF PAYMENT MADE TO J.D. EVENTS IN RESPECT OF ARRANGEMENT OF DCOR, TENTAGE AND STAGE, LIGHT AND SOUND, LED SCREEN, FIRE WORKS AND PHOTOGRAPHER FOR FUNCTION ARRANGED FOR FACILITATION OF PRINCIPAL ORGANISED BY THE ASSESSEE AND CRICKET TOURNAMENT ORGANISED BY THE ASSESSEE, IT WAS SUBMITTED THAT SUCH PAYMENT WAS MADE TOWARDS CONTRACT AND NOT IN RESPECT OF ANY EVENT ITA NO. 4/IND/2015 DALY COLLEGE 6 MANAGEMENT AND AS SUCH TDS WAS MADE AT THE RATE OF 2%. HE SUBMITTED THAT IN RESPECT OF J.D. EVENTS, THE PAY MENT IS MADE FOR CONTRACT AND NOT IN RESPECT OF FUND MANAGEMENT. MOREOVER, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMI TTED A CHART BEFORE US DURING THE COURSE OF HEARING. HE SUBM ITTED THAT THE PAYMENT WAS MADE TO J.D. EVENTS FOR MANAGERIAL SERVICES AND THE J.D. EVENTS HAS ALREADY ACCOUNTED THIS INCOME IN HIS RETURN OF INCOME AND, THEREFORE, NO DEDUCTION IS REQUIRED. IN RESPECT OF THE PAYMENT MAD E TO AUFKOLAREN EVENT MANAGEMENT LLP, THE ASSESSEE HAS GIVEN THE ADDRESSES AND LEDGER ACCOUNT OF AUFKOLAREN EVENT MANAGEMENT LLP. HE SUBMITTED THAT THEY HAVE ALREADY ACCOUNTED THIS INCOME IN THE RETURN OF INCOME. THER EFORE, NO DEDUCTION IS REQUIRED BY THE ASSESSEE. 5. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. ITA NO. 4/IND/2015 DALY COLLEGE 7 6. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT IN CASE OF J.D. EVENTS, THE DEDUCTEE HAS ALREADY SHOWN THE INCOME A COPY OF WHICH IS FILED IN T HE PAPER BOOK. IN OUR OPINION, THEREFORE, NO ADDITION IS CALLED FOR. THE ASSESSEE HAS FILED THE CERTIFICATE OF CA SH OWING THAT THEY HAVE ALREADY OFFERED THE AFORESAID PAYMENT IN T HE RETURN OF INCOME AND AS SUCH NO ADDITION IS CALLED FOR. WE, THEREFORE, DELETE THE SAME SUBJECT TO VERIFICATION BY THE ASSESSING OFFICER. WE, THEREFORE, IN THE INTEREST OF JUSTICE, RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFF ICER IN CASE OF J.D. EVENTS TO VERIFY FROM THE CERTIFICATE OF CA AND AFTER VERIFICATION IF IT IS FOUND THAT THE ASSESSEE HAS ALREADY ACCOUNTED THE SAME, NO ADDITION IS CALLED FOR. 7. IN RESPECT OF PAYMENT OF RS.1,12,700/- MADE TO AUFKOLAREN EVENT MANAGEMENT LLP, WE FIND THAT RS.75,600/- HAVE BEEN SPENT ON HOTEL ACCOMMODATION ITA NO. 4/IND/2015 DALY COLLEGE 8 WHICH REQUIRED NO TDS. WE ARE, THEREFORE, OF THE VIE W THAT NO ADDITION IS CALLED FOR IN RESPECT OF RS. 1,12,700/ -. THE REMAINING AMOUNT IS RS. 1,12,700 (-) 75,600/- = RS37,100/-. IN RESPECT OF THE REMAINING PAYMENT OF RS.6,800/- TOWARDS FACULTY ADVISOR, DELEGATE FEE OF RS. 90,500/-, FACULTY ADVISORY FEE RS. 1,000/- AND INTER T RAVELS RS. 98,000/-, WE FIND THAT THESE EXPENSES ARE PAYMENT S NOT MADE FOR ANY SERVICES. WE ARE, THEREFORE, OF THE VIEW THAT ON THESE PAYMENTS NO TDS IS CALLED FOR. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 21 ST NOVEMBER, 2016. SD/- SD/- ( ..!') (..) #$ (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 21 ST NOVEM BER, 2016 ITA NO. 4/IND/2015 DALY COLLEGE 9 DN/
