TMI Blog2020 (3) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest due thereon. The assessee shall cooperate and provide the relevant information required by the Assessing Officer. If after verification, it is found that the basic TDS liability and interest thereon has already been paid by the NOIDA, then no such liability shall be raised on the assessee. Accordingly, we restore this issue to the file of the Assessing Officer with above directions in both the appeal before us - Appeals of the assessee allowed for statistical purposes. - ITA Nos. 3109 And 3110/DEL/2017 - - - Dated:- 28-2-2020 - Ms Sushma Chowla, Vice President And Shri O. P. Kant, Accountant Member For the Appellant : Sh Sanjay Kr Agarwal, C.A, Ms Neha Agarwal, C.A For the Respondent : Sh Satish Kr Gupta, Sr. D.R ORDER PER O. P. KANT, ACCOUNTANT MEMBER These two appeals have been filed by the assessee aggrieved with the orders dated 23.02.2017 and 24.03.2017 passed by the Learned Commissioner of Income Tax (Appeals)-41, New Delhi upholding the liability u/s 201(1) and 201(1A) of the Income Tax Act, 1961 (in short the Act ) for Assessment Year 2012-13 and Assessment Year 2013-14 respectively. 2. In view of the identical impugned orders an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee company. 5. Briefly stated facts of the case are that for Assessment Year 2012-13 notice under section 201(1)/201(1A) of the Act was issued on 18/03/2014 and order dated 28/03/2014 was passed by the Learned Assessing Officer holding the assessee as assessee-indefault and creating liability of ₹ 55,15,938/- (₹43,55,239/- on account of non-deduction of tax at source under section 194I of the Act on amount of ₹ 4,35,52,987/- and ₹ 11,60,699/- as interest for delayed payment) in respect of the land acquired on lease from NOIDA having detail as under: S. No. Date of Payment Amount subject to TDS Nature of Amount Amount of TDS payable u/s 194I (Rs.) Amount of Interest @1% pm, u/s 201(1A) of the Act (Rs.) 1. 24.03.2012 3,00,40,340 One-time lease rent 30,04,034 7,51,008 2. 16.05.2011 71,89,000 Lease Premium in respect of F.Y. 2011-12 7,18,900 2,51,615 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re responsibility of making tax and interest toward such TDS liability is of the NOIDA and not of the assessee. Accordingly submitted that the direction of the Ld. CIT(A) might be cancelled. 10. The Learned DR on the other hand supported the order of the Ld. CIT(A) and submitted that Hon ble Delhi High Court has said that to the extent no recovery should be made from the assessee if the liability in respect of the TDS along with the interest has been satisfied by the NOIDA. He submitted that in the instant case, the assessee has not submitted any evidence that interest liability has been satisfied by the NOIDA, therefore the Ld. CIT(A) is justified in raising the said liability on the assessee, following the decision of the Hon ble Delhi High Court in the case of Rajesh Project (India) Private Limited (supra). 11. We have heard the rival submission and perused the relevant materials on record. The only dispute in the case of the assessee is whether the interest liability under section 201(1A) of the Act has to paid by the assessee or not. We find that the Hon ble Delhi High Court in the case of Rajesh Project (India) Private Limited (supra) on the issue of liability to pay TD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Thirdly, the Income-Tax authorities have been directed not to take any coercive method for recovery of the amounts or the penalty, once the basic liability (with interest to be paid by the GNOIDA) has been satisfied. 16. In the instant case, the Ld. CIT(A) in Assessment Year 2012-13 has directed the Learned Assessing Officer as under: 7.11 This claim of the appellant has some merit. The appellant had a reasonable cause for not deducting tax on the payments as it was guided by the advise given by the deductee, NOIDA. Hence, following the observation of the Hon ble High Court, it is not treated as an assessee-indefault. However, it does not absolve the appellant from the interest liability u/s 201(1A), even if it is not considered to be an assessee-in-default. Hence, in view of the provisions of the First Proviso to section 201(1), the Assessing Officer is directed to give opportunity to the appellant to produce the Certificate in Form 26A as per Rule and modify the demand after ascertaining that the deductee has taken into account such sum for computing its income. The AO is further directed to re-calculate the interest u/s 201(1A) from the date on which tax was deductibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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