TMI Blog2005 (1) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... other services. Hence, interest under section 201(1A) was levied. Apart from charging interest, penalty under section 271C of the Act was also imposed for the same default. According to the Assessing Officer, the assessee-company made the following payments to M/s. Wipro Ltd. Assessment year Rent Support services Shared services 1997-98 Rs. 6,60,000 1998-99 Rs. 7,00,000 Rs. 1,90,090 Rs. 37,52,000 1999-00 Rs. 8,00,000 2000-01 Rs. 8,00,000 Since the assessee was supposed to deduct tax in respect of rent under section 194(1) of the Act, the assessee was held as defaulter. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though the assessee has been treated as a defaulter, but no tax demand was raised against the assessee since the amount of tax was already paid by M/s. Wipro Ltd. The learned counsel for the assessee placed reliance on the decision of the Delhi High Court in Azadi Bachao Andolan v. Union of India [2001] 252 ITR 471 1 and also the decision of the Bangalore Bench of the Tribunal in the case of Wipro Finance Ltd. v. ITO [2003] 81 TTJ (Bang.) 887, copy of which has been filed before us. 4. On the other hand, the learned DR opposed the prayer of the assessee and submitted that the assessee itself has mentioned in the books of account that whatever was paid to Wipro Ltd., was only rent. It was submitted that the definition of the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es was owned by M/s. Wipro Ltd., for which payment was made by the assessee to Wipro Ltd. This payment is noting but a consideration for use and occupancy of the premises and other services. The word rent has been explained in Explanation section 194-I of the Act, as follows : " Explanation to section 194-I : ( i ) rent means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee :" On perusal of the aforesaid provision, we find that the amount paid by the assessee for use and occupatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest. The interest has to be levied up to the period of non-payment of tax. No interest is to be levied from the date when tax was paid by Wipro Ltd. 7. Regarding payment of shared services and support services, for the assessment year 1998-99, according to the ITO, it is covered by section 194J of the Act. On perusal of the provisions of section 194J, we find that the said provision is applicable in respect of payment of fees for professional services or fees for technical services. The assessee has submitted before us that service charges were paid to Wipro Ltd., for providing training, audit and technical services. This fact is supported by the materials brought on record by the assessee and could not be contro-verted by the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of penalty, etc., by the Commissioner, in a case which relates to penalty under section 271(1)( c ) of the Act. Waiver can be done only if the following conditions are satisfied, i.e. , the assessee has : ( a )prior to the detection of the concealment of particulars of income or of inaccurate particulars furnished in respect of such income, ( b )voluntarily and in good faith made full and true disclosure of such particulars, ( c )co-operated in any enquiry relating to assessment of income. A case of non-deduction of tax at source cannot prima facie be placed on a higher pedestal than concealment of income or furnishing inaccurate particulars. The situation is rather the reverse. Therefore, application of the ingredients/c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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