Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 601 - AT - Income TaxNon deduction of TDS on such lease rental payment and interest to the Noida Authority - assessee-in-default - demand was raised under section 201(1) and interest under section 201(1A) - HELD THAT:- In the case of Rajesh projects (India) (P) Ltd [2017 (2) TMI 1109 - DELHI HIGH COURT] has directed not to take any coercive method for recovery of the amount or penalty once the basic liability (with interest to be paid by the GNOIDA) is satisfied. It is clear that if the tax on the under dispute lease rental income along with the interest has been paid by the deductee, i.e., GNOIDA, no recovery can be made from the deductor. In the light of the ratio of the decision, in the instant case, the NOIDA authority is required to pay tax as well as interest if any corresponding to the lease rental paid the assessee. However, if such tax and interest are not paid by the NOIDA, the assessee cannot be exonerated from the liability under section 201(1) and 201(1A). We find that in the instant case, CIT(A) has deleted liability under section 201(1) of the Act but retained the interest liability under section 201(1A) of the Act. The first appellate authority in assessment year 2011- 12, has deleted the interest liability as held that Noida Authorities are under an obligation to comply with the provision of the law relating to TDS and also for making all related payments. In our opinion, if the interest has already been paid by the NOIDA Authority on the lease rental income corresponding to payment of the assessee no liability can be raised on the assessee u/s 201(1A) of the Act. This is a matter of verification and cannot be presumed. We feel it appropriate to restore this issue to the file of the AO for verifying the facts of interest paid on the tax liability by the Noida Authority, corresponding to lease rental paid by the assessee, and decide the issue in accordance with law. Grounds raised by the assessee are accordingly allowed for statistical purposes.
|