ITO(TDS), Kollam V. Sri.Reju Tom Lal, Kollam

ITA 771/COCH/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73906 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-03-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 05-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LATHA V SREEKUMAR
• Assessee Lawyers: R SRIDHAR

Judgement Text

1 ITA NO. 771-773/COCH/2013 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 771 TO 773/COCH/2013 (ASSESSMENT YEARS 2007-08, 2008-09 & 2009-10) ITO (TDS) VS SHRI REJU TOM LAL KOLLAM ASSISTANT DIST. CO-ORDINATOR AKSHAYA PROJECT CORPORATION BUILDING ANDAMUKKOM, KOLLAM PAN : NOT AVAILABLE (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. LATHA V SREEKUMAR RESPONDENT BY : SHRI R SRIDHAR DATE OF HEARING : 03-03-2014 DATE OF PRONOUNCEMENT : 07-03-2014 O R D E R PER N.R.S. GANESAN (JM) ALL THE APPEALS OF THE REVENUE ARE DIRECTED AGAINS T THE COMMON ORDER PASSED BY THE CIT(A) DATED 03-09-2013 AND PER TAIN TO ASSESSMENT YEARS 2007-08, 2008-09 AND 2009-10. SINCE COMMON I SSUE ARISES FOR CONSIDERATION IN ALL THESE APPEALS, WE HEARD ALL TH E APPEALS TOGETHER AND DISPOSE OF THEM BY THIS COMMON ORDER. 2 ITA NO. 771-773/COCH/2013 2. WE HEARD SMT. LATHA V SREEKUMAR, THE LD.DR AND S HRI R SRIDHAR, THE LD.REPRESENTATIVE FOR THE ASSESSEE. 3. THE CASE OF THE REVENUE IS THAT GOVERNMENT OF KE RALA THROUGH ASSISTANT DISTRICT CO-ORDINATOR, AKSHAYA PROJECT DI STRIBUTED RS.80 PER STUDENT TO E-LEARNING CENTRE. THIS IS, ACCORDING T O THE LD.DR, IS A FEE FOR TECHNICAL SERVICES THEREFORE THE ASSESSEE IS LIABLE TO DEDUCT TAX U/S 194J OF THE ACT. WE ARE UNABLE TO UPHOLD THE CONTENTION OF THE DEPARTMENT. IN ORDER TO PROMOTE COMPUTER LITERACY IN THE STATE OF KERALA, THE GOVERNMENT, AS A MATTER OF POLICY, REIMBURSED PART OF FEE PAYAB LE BY THE STUDENT. AS PER THE SCHEME PROMOTED BY THE GOVERNMENT, THE TOTA L FEE PAYABLE BY GENERAL STUDENT IS RS.120 OUT OF WHICH THE STUDENT SHALL PAY ONLY RS.40 AND THE REMAINING FEES OF RS.80 SHALL BE REIMBURSED BY GOVERNMENT OF KERALA THROUGH E-LEARNING CENTRES. NO DOUBT, THE F EE WAS PAID TO RESPECTIVE E-LEARNING CENTRES. HOWEVER, THE PAYMEN T IS WITH REGARD TO FEES RELATING TO THE RESPECTIVE STUDENT @RS.80/-. EDUCA TION IS IN THE CONCURRENT LIST OF THE CONSTITUTION. THEREFORE, BOTH, THE CEN TRE AND THE STATE GOVERNMENT HAVE A COLLECTIVE ROLE TO PROMOTE EDUCAT ION IN THE COUNTRY. THE STATE GOVERNMENT, AS A MATTER OF POLICY, HAS DE CIDED TO EDUCATE THE CITIZENS BY PROVIDING BASIC COMPUTER KNOWLEDGE. TO FACILITATE THIS SCHEME, THE GOVERNMENT PAID PART OF THE FEE PAYABLE BY THE STUDENT TO THE RESPECTIVE E-LEARNING CENTRE. THEREFORE, THIS TRIB UNAL IS OF THE CONSIDERED 3 ITA NO. 771-773/COCH/2013 OPINION THAT WHEN THE GOVERNMENT REIMBURSED THE FEE PAYABLE BY THE STUDENT EITHER TO THE STUDENT DIRECTLY OR TO THE RE SPECTIVE INSTITUTION, IT CANNOT BE CONSIDERED AS A PAYMENT FOR FEE FOR TECH NICAL SERVICES. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT GOVERNME NT OF KERALA, IN ORDER TO DISCHARGE THEIR CONSTITUTIONAL OBLIGATION HAS FRAME D THE POLICY TO MAKE THE PEOPLE COMPUTER LITERATE. IN VIEW OF THE ABOVE, TH IS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE SAME IS CONFIRMED. 4. IN THE RESULT, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH MARCH, 2014. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 07 TH MARCH, 2014 PK/- COPY TO: 1. ITO (TDS), AAYAKAR BHAVAN, KARBALA JUNCTION, KOL LAM 691 001 2. SHRI REJU TOM LAL, ASST.DIST.CO-ORDINATOR, AKSHA YA PROJECT, CORPORATION BLDG, ANDAMUKKOM, KOLLAM 3. THE COMMISSIONER OF INCOME-TAX (TDS), KOCHI 4. THE COMMISSIONER OF INCOME-TAX(A)-III, VITH FLOO R, KERA BHAVAN, SRVHS ROAD, KOCHI-682 011 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH