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2021 (10) TMI 1219 - HC - Income TaxTDS u/s 194J - Accrual of income - payment for service charges - whether the payment paid by the assessee includes the service charges and constitutes the income - Assessee’s main ground that no service charges were paid to the KIADB and the amount of ₹ 1225 Crores paid to the KIADB is part of the compensation to the lands acquired requires consideration - HELD THAT:- The liability to deduct tax would arise only if payment was made towards service charges by the assessee which attracts tax liability. The primary factor to attract Section 194J is the ingredient of ‘income comprised therein’ as held in Kalyani Steels Ltd. [2018 (5) TMI 152 - KARNATAKA HIGH COURT]. In order to establish the same,assessee has referred to Annexure to Schedule – D – Annexure – D1; deposit from allottees in the balance sheet of the KIADB as at 31.03.2013, copy of which is made available at page 179 of the appeal memo. In Sl.No.16 of the said Annexure – D1, Code No.5047 shows deposit of Bangalore Metro Rail Project as ₹ 12250000050.00 and it is submitted that the same tallies with the payment shown by the assessee for the assessment years in question. It is vehemently contended that ledger accounts in books of KIADB reflects that no service charges from BMRCL has been collected. On the contrary, the assessment orders of the KIADB placed before the Court refers to certain sum shown as the amount received towards service charges. However, the break-up of the same is not available. Be that as it may, it is the strong case of the assessee that the amount of ₹ 1225 Crores paid by it, is shown as deposit by the KIADB. The aforesaid factual aspects requires re-examination by the Tribunal being the last fact finding authority inasmuch as the payment of ₹ 1225 Crores made by the assessee vis-à-vis the accounts of KIADB relating to the said transaction - A finding is necessary whether ₹ 1225 Crores includes the service charges or not which is the primary dispute. Hence, we restore the matter to the file of the Tribunal sans answering the substantial questions of law, setting aside the impugned order, keeping open all the rights and contentions of the parties.
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