TMI Blog2018 (7) TMI 2179X X X X Extracts X X X X X X X X Extracts X X X X ..... terest u/s. 201(1A) of IT Act. Assessee s claim u/s. 158A (3) is admitted and therefore, assessee shall not be entitled to raise any question of law in the present five years before Hon'ble Karnataka High Court u/s. 260A of IT Act and when the decision on the questions of law in Assessment Years 2006-07 to 2009-10 becomes final, it shall be applied to the present 5 years also i.e. Assessment Years 2010-11 to 2014-15. - ITA Nos. 2263 to 2272/Bang/2016 - - - Dated:- 20-7-2018 - SHRI SUNIL KUMAR YADAV AND SHRI ARUN KUMAR GARODIA, JJ. Appellant by : Shri Sharath Rao, CA Respondent by : Smt. Padma Meenakshi, JCIT (DR) ORDER Out of this bunch of 10 appeals, five appeals are in respect of demand raised u/s. 201(1) of IT Act for Assessment Years 2010-11 to 2014-15 and the remaining five appeals are in respect of demand raised by the AO u/s. 201(1A) of IT Act for Assessment Years 2010-11 to 2014-15. These appeals are directed against a combined order of ld. CIT (A)-13, Bangalore dated 17.10.2016. All these appeals were heard together and are being disposed of by way of this common order for the sake of convenience. 2. The grounds raised by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belatedly deducted TDS on 'expense provisions' during the subsequent year i.e. when the actual expenses were recorded/payments were made to vendors thereby holding the Appellant to be an 'assessee in default' under section 201 of the Act. 9. The learned CIT(A) and the AO have erred in law and on facts in holding that the Appellant, having made a disallowance under Section 40(a) of the Act was estopped from contending that there was no liability to deduct tax under Chapter XVII-B of the Act, without appreciating that a disallowance under Section 40(a) would not automatically result in a default in terms of Section 201 of the Act 10. The learned CIT(A) and the AO have erred in law and on facts in holding that the liability to deduct tax at source would arise on credit to a 'suspense account', including a 'provision' created in the books of account and that therefore the Appellant is required to deduct tax at source on such provisions. 11. The learned CIT(A), being an appellate authority lower to the honourable ITAT, has erred in law in holding the decision of the jurisdictional ITAT in the case of Bosch Limited vs. Income Tax Officer (ITA 158 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a non for applicability of the tax deduction provisions under the Act 7. The learned CIT(A) and the AO have erred in law and on facts in failing to appreciate the various judgments cited by the Appellant and circulars issued by the CBDT which recognize the fact that there can be no liability to deduct tax at source on 'expense provisions'. 8. The learned CIT(A) and the AO have erred in law and on facts in stating that the Appellant has belatedly deducted TDS on 'expense provisions' during the subsequent year i.e. when the actual expenses were recorded/payments were made to vendors thereby holding the Appellant to be an 'assessee in default' under section 201 of the Act. 9. The learned CIT(A) and the AO have erred in law and on facts in holding that the Appellant, having made a disallowance under Section 40(a) of the Act was estopped from contending that there was no liability to deduct tax under Chapter XVII-B of the Act, without appreciating that a disallowance under Section 40(a) would not automatically result in a default in terms of Section 201 of the Act 10. The learned CIT(A) and the AO have erred in law and on facts in holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a High Court u/s. 260A. Such declaration of the assessee furnished under sub section 1 of section 158A was forwarded to the AO asking the AO to submit a report in this regard. The ld. DR of revenue furnished the report received from the AO on 25.06.2018 as per which the AO has stated that question of law pending in the assessee s case for Assessment Years 2006-07 to 2009-10 before Hon'ble Karnataka High Court in ITA Nos. 562 to 565/2015 u/s. 260A are identical with the questions of law arising in assessee s case for Assessment Years 2010-11 to 2014-15 in these 10 appeals i.e. ITA Nos. 2263 to 2272/Bang/2016 which are pending before the Tribunal. The AO has stated that the assessee s declaration u/s. 158A (1) may be considered accordingly. 5. We have considered the rival submissions and in view of the fact discussed above, we admit the claim of the assessee that the question of law arising in the Assessment Years 2006-07 to 2009-10 before Hon'ble Karnataka High Court are identical to the question of law arising in the present 10 appeals. Hence we dispose of these appeals by respectfully following the Tribunal order in assessee s own case for Assessment Years 2006-07 to 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular year, whether ether liquidated by way of payment or was added back to the profit loss account in subsequent year. Wherever payments were made tax has been deducted at source under the relevant provisions of the IT Act and remitted to the Govt. Account. 5. Though, the has been deducted at source at the time of payments in respect of provisions made as on 31 march, it is be stated that in was the assessee company s responsibility to deduct tax at source and remit it to the Govt. Account as soon as item of expenditure is debited by it in the books of accounts. Reference is invited to sub section 2 of section 194C, which mandates that the any amount credited to any account whether called suspense account or by any other name, in the books of accounts such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. Similar provisions/explanation is also to be found in other sections relating to TDS. Thus, it can be seen that the assessee company has failed to deduct tax at source on the provisions made by it on 31st March within the stipulated time. The assessee company has deducted ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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