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2016 (9) TMI 56 - HC - Income TaxTDS u/s 194A - demand created under section 201(1) and (1A) in respect of Punjab Infrastructure Development Board, treating the assessee in default for non deduction of tds - whether no automatic exemption is available, even if the assessee is exempted under section 10(23C)(iv) of the Act ? - ITAT deleted the demand - Held that:- The Commissioner of Income-tax (Appeals) and the Tribunal on appreciation of material on record have concurrently recorded that if an organisation is exempted from payment of tax there was no need for deduction of tax at source by the assessee. Learned counsel for the Revenue was not able to demonstrate that the approach of the Commissioner of Income-tax (Appeals) and the Tribunal was erroneous or perverse or that the findings of fact recorded were based on misreading or misappreciation of evidence on record. The view of the Commissioner of Income-tax (Appeals) and the Tribunal is in conformity with the decision of the apex court in Hindustan Coca Cola Beverage P. Ltd. v. CIT [2007 (8) TMI 12 - SUPREME COURT OF INDIA ], where it has been held as under : "Be that as it may, the Circular No. 275/201/95-IT(B), dated January 29, 1997, issued by the Central Board of Direct Taxes, in our considered opinion, should put an end to the controversy. The circular declares 'no demand visualized under section 201(1) of the Income- tax Act should be enforced after the tax deductor has satisfied the officer-in-charge of TDS, that taxes due have been paid by the deductee-assessee. However, this will not alter the liability to charge interest under section 201(1A) of the Act till the date of payment of taxes by the deductee-assessee or the liability for penalty under section 271C of the Income-tax Act'." - Decided against revenue
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