ACIT, Noida V. M/s. Jaypee Ganga Infrastructure Corporation Ltd., Noida

ITA 5441/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3714 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 04-09-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K BHARADWAJ
• Keywords: Non-deduction of tax

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO.5441/DEL/2015 ASSESSMENT YEAR : 2012-13 ACIT, TDS-NOIDA, ROOM NO.110, 1 ST FLOOR, PLOT NO.A-2D, AAYAKAR BHAWAN, SECTOR-24, NOIDA. VS. JAYPEE GANGA INFRASTRUCTURE CORPORATION LTD., SECTOR-128, NOIDA. PAN: AABCJ9667J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.K. BHARADWAJ, ADVOCATE DEPARTMENT BY : SHRI ARUN KUMAR YADAV, SR. DR DATE OF HEARING : 18.10.2017 DATE OF PRONOUNCEMENT : 18.10.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) ON 14.05.2015 IN RELATION TO THE ASS ESSMENT YEAR 2012-13. ITA NO.5441/DEL/2015 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAIN ST THE DELETION OF DEMAND ON ACCOUNT OF PAYMENT OF BANK GUARANTEE COMMISSION WITHOUT DEDUCTION OF TAX AT SOURCE. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ASSESSEE PAID BANK GUARANT EE COMMISSION TO ITS BANK WITHOUT ANY DEDUCTION OF TAX AT SOURCE. THE A SSESSING OFFICER TREATED THE ASSESSEE AS AN ASSESSEE IN DEFAULT FOR NON-DEDUCTION OF TAX AT SOURCE U/S 194H ON THE AMOUNT OF BANK GUARANTEE COM MISSION PAID WITHOUT TAX WITHHOLDING. THE LD. CIT(A) DELETED TH E DEMAND. IT IS SEEN THAT THE ASSESSEE MADE PAYMENT TO BANK ON PRINCIPAL TO PRINCIPAL BASIS AND, AS SUCH, THERE WAS NO REQUIREMENT OF ANY DEDUC TION OF TAX AT SOURCE. THE DELHI BENCH OF THE TRIBUNAL IN JAPYEE SPORTS IN TERNATIONAL LTD. AND OTHERS (ITA NO.4279 TO 4281/DEL/2015 ETC.) VIDE ITS ORDER DATED 31.08.2017 HAS HELD THAT THERE IS NO REQUIREMENT OF DEDUCTION OF TAX AT SOURCE ON BANK GUARANTEE COMMISSION U/S 194H OF THE ACT. RESPECTFULLY FOLLOWING THE PRECEDENT, WE UPHOLD THE IMPUGNED ORD ER. ITA NO.5441/DEL/2015 3 4. IN THE RESULT, THE APPEAL FILED BY THE REV ENUE IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 18.10.201 7. SD/- SD/- [H.S. SIDHU] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 18 TH OCTOBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.