TMI Blog2021 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... the total turn over and the revisional authority has rightly dropped the proceedings in respect of the deduction of tax on the aforesaid amount. However, the aforesaid aspect of the matter has not been appreciated by the Additional Commissioner of Commercial Taxes and it has been erroneously held that the amount of total TDS deducted cannot form part of the exempted turn over in the absence of such provisions of the Act and Rule. The Assistant Commissioner of Commercial Taxes failed to appreciate Rule 2(h) of the Rules. Therefore, in view of the preceding analysis, the substantial questions of law involved in this appeal are answered in favour of the appellant and against the respondent - Appeal allowed - decided in favor of appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances of the case whether the Additional Commissioner of Commercial Taxes, Zone-I, Bengaluru is right in revising the order of the Joint Commissioner of Commercial Taxes (admn.), DVO-I, dated 16.11.2012 even though the order was not suffering from any error which was prejudicial to the interest of the revenue? 3. Facts leading to filing of this appeal briefly stated are that the appellant is a registered dealer under the provisions of the Act. The appellant is a partnership firm which carries on the activity of execution of works contract exclusively for Ministry of Defence. During the assessment period in question, the appellant was awarded a works contract by the Ministry of Defence. The assessee filed the return for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned counsel for the appellant submitted that the order passed by the Second Revisional Authority ie., the Additional Commissioner of Commercial Taxes for the assessment period 2007-08 is erroneous, illegal and have no authority in law to review the order of the Joint Commissioner of Commercial Taxes. It is further submitted that the findings recorded by the Assistant Commissioner of Commercial Taxes that the Assessing Officer has wrongly allowed exemption on the above TDS amount from taxable turnover even though such receipts are deducted by the Tax Deducting Authority, in the R.A. bill is contrary to the provision of the Act. It is further submitted that the amount collected by way of TDS cannot form part of the total turn over. In sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total turn over. 9. In the instant case, the TDS has been collected from the appellant under the provisions of the Act. Therefore, the amount of TDS to the extent of ₹ 23,40,187/- cannot be allowed to be added in the total turn over and the revisional authority has rightly dropped the proceedings in respect of the deduction of tax on the aforesaid amount. However, the aforesaid aspect of the matter has not been appreciated by the Additional Commissioner of Commercial Taxes and it has been erroneously held that the amount of total TDS deducted cannot form part of the exempted turn over in the absence of such provisions of the Act and Rule. 10. It is pertinent to note that while recording the aforesaid finding, the Assistant Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
