9911796707
TMI Blog2023 (5) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.03.2022 27.07.2018 U/s 201 2015-16 182/JPR/2023 30.03.2022 27.07.2018 U/s 201 2016-17 183/JPR/2023 30.03.2022 27.07.2018 U/s 201 2017-18 184/JPR/2023 30.03.2022 27.07.2018 U/s 201(1)/201(1A) 2013-14 185/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2014-15 186/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2015-16 187/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2016-17 188/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2017-18 189/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2. As it is seen that out of eleven appeals of the assessee, six appeals challenge to the levy of TDS demand on the alleged default of the assessee and five related to the levy of penalty u/s. 271C. Since the issues involved in the assessee's appeal for all the years are almost identical and the issues are almost common, except the difference in figure of additions disputed and the amount of levy of penalty in each year. Based on these facts, all these appeals were heard together with the agreement of both the parties and are being disposed off by this consolidated order. 3. At the outset, the ld. AR has submitted that the matter pertaining to ITA no. 180/JPR/2023 & 185/JPR/2023 may be taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als available on record the bench noted that the assessee prayed for condonation of delay of 304 days. The reasons placed on record has merit and we concur with the submission of the assessee. Thus the delay of 304 days in filing the appeal by the assessee is condoned in view of the decision of the apex court decision in case of Collector, Land Acquisition vs MST Katiji, wherein the Hon'ble Supreme Court has held that the expression 'Sufficient Cause' employed by the legislature is adequately elastic to enable the Courts to apply the law in a meaningful manner to sub-serves the ends of justice that being the life-purpose of the existence of the institution of Courts. It was further held by the Hon'ble Supreme Court that such liberal approach is adopted is one of the principles that refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. Another principle laid down by the Hon'ble Supreme Court is that when substantial justice and technical conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ource from the impugned payments. 4. On the facts and circumstances of the case the CIT(A) ought to have upheld the "order of the Assessing Officer passed u/s 271C. 5. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 6. Briefly the facts of the case are that the assessee is an office of State Government of Rajasthan, Forest Department for conservation of forest and increasing the forest area through use of re-foresting. A Spot verification of TDS was conducted at the office premises of the deductor u/s 133A(2A) of the Act in the office of the assessee on 29.09.2016. During the course of verification and on perusal of information provided it was found that the payments are being made for civil construction work relating to environmental development, forestation, forest development, buffer area development etc. through EDCs (ECO Development Committees). The EDCs are bodies registered with the forest department and are mainly constituted with local villagers and with one representative of Forest Department. 6.1 Based on the information so collected ld. AO vide letter No.757 dated 14.06.2018 informed the assessee that the work c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts and bills relating to Development expenditure maintained. As no reply was filed, despite several opportunities, it was proposed that in the absence of these details, the appeal will be decided on the basis of material available on record. No reply has been filed in response to this notice as well; hence the appeal is being decided accordingly. 5.6 The appellant's claim is that as per Rajasthan Government notification, EDCs can not be treated as contractors for the purposes of section 194C of IT. Act. As has been clarified by the ITO, TDS in his order, notification if any is by the Government of Rajasthan and no such exemption is available to the EDCs under Income Tax Act. The appellant has not furnished copy of such notification despite repeated opportunities 5.7 Whether or not EDCs are making profit or not, is not material. As per law, the appellant was required to deduct tax on the contractual payments. Moreover, it is not known how EDCs are incurring the expenditure and what is the procedure followed. In the absence of any details filed to support the claim of the appellant, the same cannot be accepted. The grounds raised are rejected and the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 275, no reply has been given on merit. The appellant was asked to furnish a copy of State Government order which has been mentioned in the order of Income Tax Officer, TDS. However, no such detail has been furnished by the appellant despite several opportunities. Therefore, it is inferred that the appellant has nothing to state on merit. The grounds raised are rejected. The penalty order u/s 271C is hereby confirmed. 6. In effect, the appeal is Dismissed." 8. Feeling not satisfied the assessee is in appeal for the levy of TDS demand and for the penalty on the grounds as stated here in above. To support the various grounds so raised by the assessee the ld. AR of the assessee submitted that the purpose constitution of these EDCs with the aim to conduct the development works in the reserve areas with the active local participation of the villagers and to create job opportunities among them. He also submitted that the above EDCs has been exempted from the category of 'Contractor' vide Rajasthan State Government's order dated 24.10.2002 and accordingly no TDS was made from the payments made to such EDCs. The ld. AR of the assessee further submitted that there is no element of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of these case the assessee will get the substantial relief on the levy of TDS defaults as well as on the levy of penalty on the TDS defaults. The bench also noted that the assessee is part of the state government and the defaults if any is on account of the peculiar circumstances of the case and on the facts these EDCs are working under the direct supervision of the assessee on no profit no loss basis. In light of these facts we deem it fit in the interest of justice to admit the details of the payee with the PAN numbers. As this details were not before the lower authority we admit it in the interest of equity and justice and restore the matter to the file of the AO to examine the case afresh but by providing adequate opportunity of being heard to the assessee. The assessee is also directed to produce the documentary evidences concerning the issue in question and will cooperate the AO. Thus, the appeal of the assessee is allowed for statistical purposes in ITA No. 180/JPR/2023. 11. As we have restored the matter of TDS liability before the ld. AO we also resort the matter of levy of penalty if any on the assessee in ITA NO. 185/JRP/2023 to be decided a fresh based on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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