THE ITO (TDS), WARD - 3(3), Guntur V. The Project Director District Water Management Agency (DWAMA), Ongole

ITA 731/VIZ/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1174 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 26-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Assessee Lawyers: N V CHOWDARY
• Section: 194C; 201(1)

Judgement Text

ITA NOS.730&731/VIZAG/2013 THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT, ON GOLE 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NOS.730&731/VIZAG/2013 ( / ASSESSMENT YEAR: 2009-10) ITO(TDS), WARD - 3(3), GUNTUR VS. THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT, ONGOLE [PAN: HYDDO2361C ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.K. SETHI, DR / RESPONDENT BY : SHRI N.V. CHOWDARY, ASSESSEE / DATE OF HEARING : 27.04.2016 / DATE OF PRONOUNCEMENT : 29.04.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THESE APPEALS ARE FILED BY THE REVENUE AGAINST THE COMMON ORDER OF CIT(A), VIJAYAWADA DATED 31.10.2013 FOR THE ASSE SSMENT YEARS 2009- 10 & 2010-11. ITA NOS.730&731/VIZAG/2013 THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT, ON GOLE 2 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS WHETHE R THE ASSESSEE HAS TO DEDUCT THE TDS OR NOT. WHILE COMPLETING THE ASSE SSMENT, THE A.O. IS OF THE OPINION THAT SINCE THE WORKS RELATING TO ALL EXPENDITURE INCURRED WERE EXECUTED THROUGH NON-GOVERNMENTAL AGENCIES AND OTHER PERSONS WHICH COME WITHIN THE PURVIEW OF THE SECTION 194C O F THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT'), THEREF ORE, THE ASSESSEE HAS TO DEDUCT THE TDS AS PER SECTION 194C OF THE ACT. ACC ORDINGLY, HE HAS RAISED A DEMAND U/S 201(1) & 201(1A) OF THE ACT. O N APPEAL, IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT THE ASSESSEE R ECEIVED THE FUNDS FROM THE GOVERNMENT AND TRANSFERRED THE SAME TO THE PANCHAYATS AND IN TURN IT IS UP TO GRAM PANCHAYATS WHO HAVE SPENT THIS AMOUNT ON THEIR OWN NOT THE ASSESSEE. THEREFORE, ASSESSEE IS UNDER NO OBLIGATION TO DEDUCT THE TDS. THE ASSESSEE HAS FILED ALL THE DET AILS BEFORE THE LD. CIT(A). THE LD. CIT(A) AFTER CONSIDERING THE SUBMI SSIONS MADE BY THE ASSESSEE AND ALSO DETAILS FILED BY THE ASSESSEE, IT IS OBSERVED THAT THE ASSESSEE IS A GOVERNMENT ORGANIZATION CARRYING ON T HE ACTIVITY OF PROVIDING WATER SHED DEVELOPMENT IN VILLAGE. IN THE PROCESS OF SUCH IMPLEMENTATION, THE FUNDS WERE GRANTED BY THE GOVER NMENT OF INDIA TO THE ASSESSEE AND IN TURN THE ASSESSEE IS PASSING TH E SAME TO THE GRAM PANCHAYATS WHICH IS ALSO A GOVERNMENT ORGANIZATION. IN FACT THE PAYMENTS WERE BEING MADE BY THE GRAM PANCHAYATS TO THE WATER SHED ITA NOS.730&731/VIZAG/2013 THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT, ON GOLE 3 COMMITTEE NOT THE ASSESSEE, THEREFORE, TDS PROVISIO NS ARE NO APPLICATION AND DIRECTED THE A.O. TO DELETE THE ADD ITION. 3. BEFORE US, THE LD. D.R. IS NOT ABLE TO POINT OUT ERROR IN THE ORDER PASSED BY THE LD. CIT(A). WE FIND THAT THERE IS NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A) AND THIS GR OUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED. 4. EVEN FOR THE ASSESSMENT YEAR 2010-11, THE FACTS ARE SIMILAR. THE APPEAL FILED BY THE REVENUE FOR THIS ASSESSMENT YEA R IS ALSO DISMISSED. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE FOR THE ASSESSMENT YEARS 2009-10 & 2010-11 ARE DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH APR16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 29.04.2016 VG/SPS ITA NOS.730&731/VIZAG/2013 THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT, ON GOLE 4 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO (TDS), WARD-3(3), GUNTUR 2. / THE RESPONDENT THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT AGENCY (DWAMA), OPP. HOUSING BOARD COLONY, MAMIDIPA LEM, ONGOLE 3. ) / THE CIT(TDS), VIJAYAWADA 4. ) / THE CIT(TDS), HYDERABAD 5. ) ( ) / THE CIT(A), VIJAYAWADA 6. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 7 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM