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2019 (4) TMI 763 - AT - Income TaxAssessee in default u/s 206C - PIDB had received certain amounts from the contractor in awarding / entering into Concession Agreement for toll plaza operation / Toll based operation and maintenance concession for certain segments of roads - PIDB is just a nodal agency of the Punjab Government or acting as it own capacity - HELD THAT:- The actual activity performed by the assessee Board and other surrounding circumstances, it is apparent and clear that the Board has acted as a grantor of the concession on its own account on a principle to principle basis with the ‘concessionaire’ and has been performing all the functions actually and practically of the granter of the concession agreement. The irrespective of the wordings of the concession agreement or the confusion and ambiguity coming out of the provisions of the PI (D&R) Act 2002, the fact relevant for determination of the present tax dispute is that the assessee Board had collected the toll fee or to say Concession fee in its own capacity as an independent body corporate and had used the funds for its own purposes and activities, and as such, the assessee Board (PDBI) falls under the definition of Licensor and has acted as a Grantor of the licensee /contract in the Toll Plaza to the concessionaire and has received from the licensee / concessionaire the consideration for the award of said contract and, as such, it was liable to collect tax at source as per the provisions of section 206C (1C). The contention of the assessee that it was not merely grant of usage of toll plaza, rather, the concessionaire was responsible for the overall operation and maintenance of the project facility, is concerned, the assessee could not establish from the evidence or documents on record that as to why these agreement be not treated as agreement for grant of license / toll rights as per the provisions of section 206 C(1C). A perusal of the License /concession agreements relating to these appeals, considering the nature, scope and ambit of the agreement and also considering the actual activity carried on by the assessee PIDB, we are of the firm view that the provisions of section 206C(1C) are squarely applicable to the case in hand. Being held so, the assessee ‘PIDB'. As per the law laid down in M/S PUNJAB INFRASTRUCTURE DEV. BOARD, CHANDIGARH [2016 (12) TMI 1534 - PUNJAB AND HARYANA HIGH COURT] is held to be liable to pay interest as per the provisions of section 206C(7) and penalty under the provisions of section 271CA of the Act. In view of the above, the issue restored by the Hon'ble High Court to the Tribunal, is decided against the assessee and in favour of the Revenue.
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