ITO, TDS Ward-2(1), Hyderabad, Hyderabad V. Municipal Commissioner, Mahabubnagar Municipality, Mahabubnagar, Hyderabad

MA 59/HYD/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4470 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-06-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 27-04-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: P RAVI SESHAGIRI RAO
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER M.A.NO.57, 58, 59 & 60/HYD/2015 ARISING OUT OF ITA.NO.230, 231, 232 & 233/HYD/2014 ASSESSMENT YEARS 2006-07, 2007-08, 2008-09 & 2009- 2010 THE INCOME TAX OFFICER (TDS), WARD-2(1) HYDERABAD. VS. MUNICIPAL COMMISSIONER MAHABUBNAGAR MUNICIPALITY MAHABUBNAGAR PAN AAALM1364M (APPLICANT) (RESPONDENT) FOR REVENUE : MR. RAMAKRISHNA BANDI FOR ASSESSEE : MR. P. RAVISESHAGIRI RAO DATE OF HEARING 22.05.2015 DATE OF PRONOUNCEMENT 10.06.2015 ORDER PER SMT. ASHA VIJAYARAGHAVAN, J.M. BY THESE M.AS. THE REVENUE SEEKS FOR RECTIFICATIO N OF THE COMMON ORDER OF THE TRIBUNAL DATED 18.09.201 4 IN SO FAR AS IT RELATES TO THE APPEALS OF THE ASSESSEE, B EING I.T.A.NO.230 TO 233/HYD/2014 FOR A.YS. 2006-07 TO 2 009-10. THE REVENUE IN ITS MISCELLANEOUS PETITIONS SUBMITS AS UNDER. 2. BRIEF FACTS ARE THAT IN THE ORDER OF THE ITAT, THE APPEALS OF THE ASSESSEES ARE ALLOWED BY THE ITAT FO R ALL FOUR ASSESSMENT YEARS. IN THE PRESENT CASES, A TDS SURVE Y WAS CONDUCTED IN THE PREMISES OF THE ASSESSEE ON 16.02. 2009 AND IT WAS FOUND THAT TDS WAS NOT DEDUCTED ON CONTRACT PAYMENT, RENT AND ON PROFESSIONAL CHARGES. ACCORDINGLY, THE TDS ASSESSMENTS WERE COMPLETED ON 23.03.2011 FOR THE A. YS. 2 MA.57 TO 60/H/2015 IN ITA.233/H/2014 MUNICIPAL COM MISSIONER, MAHABUBNAGAR MUNICIPALITY, MAHABUBNAGAR. 2006-07 TO 2009-2010. AGGRIEVED BY THE ORDER, THE A SSESSEE PREFERRED APPEALS BEFORE THE CIT(A) AND THE CIT(A) HELD THAT PAYMENTS MADE TO ADVERTISING AGENCIES ARE CLEARLY H ELD LIABLE TO TDS AND DIRECTED THE A.O. TO COMPUTE THE TDS LIA BILITY IF THE AMOUNT EXCEEDS THE THRESHOLD LIMIT FOR THAT PARTICU LAR ASSESSMENT YEAR. THE ASSESSEE PREFERRED APPEALS BEF ORE THE ITAT AGGRIEVED BY THE DECISION OF THE CIT(A). IN PA RA 13 OF ITS ORDER DATED 18.09.2014 IN I.T.A.NO.230 TO 233/HYD/2 014, THE TRIBUNAL HAS OBSERVED AS UNDER : HENCE, WE REMIT THE MATTER TO THE A.O. TO VERIFY A S TO WHETHER THE PAYEE HAS DECLARED THE RESPECTIVE INCOM E AND PAID TAX THEREON AND IF SO, THE ASSESSEE SHALL NOT BE HELD AS THE ASSESSEE IN DEFAULT FOR THE PURPOSE O F INVOKING PROVISIONS OF SECTION 201 AND 201A. FURTHE R, FROM THE DETAILS AT PARA 6.3 PRODUCED AT PAGE 6 OF THE CIT(A) ORDER, WE FIND FROM THE PAYMENTS MADE TOWARD S ADVERTISEMENT THE FOLLOWING DO NOT EXCEED RS.20,000 . 3. BY THESE M.AS. THE REVENUE POINTED OUT THAT THE OBSERVATION OF TRIBUNAL AT PARA-13 DIRECTING THE A. O. NOT TO TREAT THE ASSESSEE IN DEFAULT FOR THE PURPOSE OF SE CTION 201(1A), IF THE PAYEE HAS DECLARED THE RESPECTIVE INCOME, IS NOT IN LINE WITH THE DECISION OF HONBLE SUPREME COURT IN THE C ASE OF HINDUSTAN COCA COLA BEVERAGE (P) LTD., VS. CIT (200 7) 293 ITR 226 (SC). HENCE, FOR A.YS. 2006-07 TO 2009-2010 THE M.AS. ARE SUBMITTED FOR CORRECTING THE ABOVE PARA 13 AS PAYME NT OF TAXES BY THE DEDUCTEE WILL ONLY ABSOLVE THE DEDUCTOR FROM THE PROVISIONS OF SECTION 201(1) AND NOT FROM PROVISION S OF SECTION 201(1A). 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT A MISTAK E HAS OCCURRED IN THE ORDER OF TRIBUNAL DATED 18.09.2014 IN 3 MA.57 TO 60/H/2015 IN ITA.233/H/2014 MUNICIPAL COM MISSIONER, MAHABUBNAGAR MUNICIPALITY, MAHABUBNAGAR. I.T.A.NO.230 TO 233/HYD/2014 AND WE REPLACE PARA NO .13 WHICH SHALL READ AS FOLLOWS : 13. HENCE, WE REMIT THE MATTER TO THE ASSESSING OFFICER TO VERIFY AS TO WHETHER THE PAYEE HAS DECLA RED THE RESPECTIVE INCOME AND PAID TAX THEREON AND IF SO, T HE ASSESSEE SHALL NOT BE HELD AS THE ASSESSEE IN DEFA ULT FOR THE PURPOSE OF INVOKING PROVISIONS OF SECTION 201(1 ). HOWEVER, THIS WILL NOT ALTER THE LIABILITY TO CHARG E INTEREST UNDER SECTION 201(1A) OF THE ACT TILL THE DATE OF P AYMENT OF TAXES BY THE DEDUCTEE-ASSESSEE. FURTHER, FROM TH E DETAILS AT PARA 6.3 PRODUCED AT PAGE 6 OF THE CIT(A ) ORDER, WE FIND FROM THE PAYMENTS MADE TOWARDS ADVERTISEMENT THE FOLLOWING DO NOT EXCEED RS.20,000 . SL. NO NAME 2006-07 2007-08 2008-09 2009-10 1 PRAJA SHAKTHI 14960 2. DECCAN ADVT 10000 14400 3. SIYASATH 16476 4. MAHABOOMI 3000 18000 5. MAHABUBNAGAR TIMES 6000 6. REHAMAN DECCAN 10580 7. VARTHA 4000 8. SAHARA INDIA 5000 9. KASTURI 10000 5. IN THE RESULT, M.AS. OF THE REVENUE ARE ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 10.06.2015. SD/- SD/- (P.M. JAGTAP) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 10 TH JUNE, 2015 VBP/- COPY TO 1. THE INCOME TAX OFFICER, WARD 2(1), HYDERABAD 2. THE MUNICIPAL COMMISSIONER, MAHABUBNAGAR MUNICIPALITY, MAHABUBNAGAR. 3. CIT(A)-II, HYDERABAD 4. CIT-(TDS), HYDERABAD 5. D.R. A BENCH, ITAT, HYDERABAD. 6. GUARD FILE.