TMI Blog2016 (3) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... - ALLAHABAD HIGH COURT ] which as stated before is obviously absent. So, we quash the impugned assessments itself. Appeals of the assessee are allowed. - ITA Nos.5992, 5993 & 5994/Del./2012 - - - Dated:- 4-3-2016 - SHRI A.T. VARKEY, JUDICIAL MEMBER and SHRI L.P. SAHU, ACCOUNTANT MEMBER ASSESSEE BY : SHRI M.P. RASTOGI, ADVOCATE REVENUE BY : SHRI RANU JAIN, CIT DR AND SHRI K.K. JAISWAL, DR O R D E R PER A.T. VARKEY, JUDICIAL MEMBER : These are three appeals by the assessee against a common order of the CIT (Appeals), Ghaziabad dated 13.09.2012 for assessment years 2002-03, 2003-04 and 2004-05. 2. The assessee raises the very initiation of proceedings by the AO(TDS) u/s 201 and 201 (1A) of the Income-tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has also failed to pay tax directly. The fact that assessee has failed to pay tax directly is thus, foundational and jurisdictional fact and only after finding that assessee has failed to pay tax directly, deductor can be deemed to be an assessee in default in respect of such tax .. The law in respect of initiation of proceedings u/s 201/201(1A) have been settled only after the aforesaid pronouncement of the order in year 2012 and the ITAT order in the first round to the AO was way back, so now we are bound to follow the law laid by the Hon ble jurisdictional High Court in M/s. Jagran Prakashan Ltd. (supra) In assessee s own case in a similar matter the Agra Bench of the Tribunal observed after taking note of the law laid in M/s J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer to ascertain whether or not the taxes have been paid by the recipient of income. This approach, in our humble understanding, is in consonance with the law la id down by Hon ble Allahabad High Court. From a reading of the AO s order, it is clear that AO has not made any exercise to ascertain whether the deductee / payee assessee has failed to pay taxes directly before initiation of proceedings u/s 201/201(1A) of the Act, thus assumption of jurisdiction itself stands vitiated and all subsequent proceedings are null in the eyes of law. Therefore, we quash the initiation of proceedings of the AO at the outset itself. The AO ought to have assumed jurisdiction only after satisfying the jurisdictional fact as laid by the Hon ble Jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X
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