TMI Blog2012 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) r.w.s. 201(1A) & 221, in the interest of justice it is fit to refer the matter back to the file of A.O. - I.T.A. No.4451/AHD/2007. - - - Dated:- 6-7-2012 - SHRI MUKUL KR.SHRAWAT SHRI ANIL CHATURVEDI JJ. Appellant by : Mr. S.N. Divatia Respondent by : Mr. B.L. Yadav, Sr. D.R. PER: SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. This appeal is filed by the assessee against the order of Ld. CIT (A)- X, Ahmedabad dated 6-11-2007 for Assessment Year 2006-07. 2. Assessee is a firm engaged in the business of advertising. In the previous year relevant to A.Y. 2006-07,Ahmedabad Urban Development Authority (AUDA) invited tenders for putting up 60 sign boards on Ring Road, Ahmedabad and AUDA vide its order dated 8-4-2005 accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p advertisement boards and as such there was liability to deduct and pay tax. As the same has not been done and as discussed detailed by the A.O. the assessee is liable to pay the tax as well as interest and the order of A.O. does not call for any interference. 3. Against the order of CIT (A), the assessee preferred appeal before ITAT. ITAT vide order dated 8-10-2010 gave partial relief to the assessee by holding as under:- 7. We find that as per contract with AUDA, the assessee was to put up sign boards on Unipole which were to be at least 2.7 mt. above the ground level as stated in clause 10 of the acceptance letter dated 8-4-2005 of AUDA and structures were to be constructed as per the design given by license structural engineer an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled for the purpose of adjudicating Ground No.3 relating to quantum of TDS and interest u/s. 201(1A). Thus in the present appeal the only ground which we are to adjudicate relates to interest u/s.201 201(1A) i.e. Ground No.3 for ready reference reproduced below: The Ld. CIT (A) Ahmedabad further erred in law and on facts in confirming the order of the Ld. A.O., treating the appellant an assessee in default, on account of non deduction of tax at source and raising the demand of Rs.19,09 894/- on account of tax and Rs.3,67,336/- on account of interest on the same, by invoking the provisions of section 201 (1) r.w.s. 221 and Sec. 201(1A) of the Act. This being illegal, the same may kindly be deleted. 5. Before us, the Ld. A.R. submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ara 10 of the order has given a finding that AUDA is filing its return of income and is assessed to tax. CBDT vide Circular No,.275/201/95-IT(B) dated 29-1-1997 states no demand visualized u/s. 201(1) of the I.T. 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 u/s. 201(1A) of the Act till the date of payment of taxes by the deductee or the liability for penalty u/s. 271C of the I.T. Act . Hon ble Apex Court in the case of Hindustan Coca Cola (supra) has held that where the payee has already paid tax on the income on which there was a short deduction of tax at source, recovery of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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