TMI Blog2016 (11) TMI 1465X X X X Extracts X X X X X X X X Extracts X X X X ..... f income. In view thereof we see no reason as to why the assessee shall be held to be liable for TDs and disallowance u/s 40(a)(ia). - Decided in favour of assessee. - I.T.A. Nos.1206 to 1211/Ahd/2016 - - - Dated:- 9-11-2016 - Pramod Kumar, AM and Mahavir Prasad, JM S.N. Soparkar for the Appellant Sumit Kumar Verma for the Respondent O R D E R Per Bench: 1. These six appeals, pertain to the same assessee, involve a common issue and were heard together. As a matter of convenience, therefore, all these six appeals are being disposed of by this common order. 2. In substance, the short and common grievance, arising in all these appeals, is that the learned CIT(A) erred in upholding the tax withholding demands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 201(1) and 201(1A) r.w.s. 194J, holding the assessee at fault for non-compliance as above. Aggrieved, assessee carried the matter in appeal before the learned CIT(A) but without any success. The assessee is not satisfied and is in further appeal before us. 4. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. 5. The issue in appeal is no longer res integra. A co-ordinate bench of this Tribunal, in assessee s own case in respect of assessment under section 143(3) for the assessment years 2006-07 to 2011-12, has, inter alia, observed as follows :- 8. We have heard the rival contentions and perused the material on record. In ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... patent , copy right , trade mark, license, franchise or any other business or commercial right of similar nature etc. the similar nature of great significance and the impugned license fee not being paid for sharing any know how, patent , copy right , trade mark, license, franchise cannot fall under its purview. d. Apropos additional ground also respectfully Hon ble Supreme court judgments Som Prakash Rekhi has laid down parameters as to when a corporation can be called a state for legal and practical purposes. Income Tax law provides some beneficial and relaxing provisions for Govt. local bodies etc. for ease of administration and flexibility. TDS is a mechanism to avoid nonpayment of taxes by payees. Legislature in its superior wisdom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable for TDs and disallowance u/s 40(a)(ia). 8.1 In view of foregoing facts, circumstances and respectfully following the judicial precedents as mentioned above we hold that assessee s licence fee payments to IRCTC were not liable for TDS and cannot be disallowed u/s. 40(a)(ia). Thus we allow the assessee grounds on merits also in this behalf and dismiss relevant revenue grounds in the impugned years. 6. Respectfully following the esteemed views so expressed by the co-ordinate bench, we uphold the plea of the assessee and direct the Assessing Officer to cancel the impugned demands under section 201(1) and 201(1A) r.w.s. 194J. The assessee gets the relief accordingly. 7. In the result, the appeals are allowed in the terms above. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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