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TMI Blog2024 (7) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... No.35 has specifically denied the mode of notice through e-mail. The assessee was not having the knowledge of the impugned order till it has received the summons issued u/s 131 of the Act and came to know that the impugned order was passed on 13.12.2022 whereby the appeals of the assessee were dismissed. Further the Assistant Commissioner and other staff of the assessee were engaged in the election duty of State Legislative Assembly election and therefore, the appeals could be filed only on 28.12.2023. Hence, the Ld. AR has submitted that the delay in filing these appeals may be condoned as the assessee was not aware of the impugned order before October, 2023 when the assessee received the summons u/s 131 of the Act. The Ld. AR has pointed out that the A.O has passed the order u/s 201(1) of the Act in respect of the payments made by the assessee to the Bhopal Development Authority (BDA) which in turn has to execute and undertake the work through the contractors and the payment made to the contractors was subjected to the TDS u/s 194C of the Act. Thus, the deduction of tax at source on the payment to the BDA is required as it would not attract the provisions of Section 194C of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay of 320 days in filing these appeals is condoned. 3. The assessee has raised common grounds of appeal. The grounds of appeal raised for Assessment Year 2013-14 are reproduced as under: "1. That on the facts and in the circumstances of the case the learned Commissioner of Income Tax (Appeals) [CIT(A)] erred in facts and in law in dismissing the appeal. 2. That on the facts and in the circumstances of the case the CIT(A) erred in facts and in law in dismissing the appeal as there is contradiction in the order passed by assessing officer regarding amount of payment made to Bhopal Development Authority. At one place of order, it is 157,22,600/- whereas as per list, it is 231,38600/-. Thus, the basis for calculating tax demand is not confirmed. 3. That on the facts and in the circumstances of the case the learned CIT(A) erred in facts and in law in dismissing the appeal as payee, Bhopal Development Authority, has included all payments in its income and filed return of income. 4. That on the facts and in the circumstances of the case the learned CIT(A) erred in facts and in law in dismissing the appeal as I'd assessing officer has included many payments to Bhopal Developm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se communities. The assessee receives the fund from the Government for the welfare schemes including acquiring, maintaining hostels and schools buildings and therefore, the assessee being DDO transfers these funds to BDA which is the nodal agency for the said work. The BDA in turn invites the tenders from the contractors and awards the work to the contractors. The BDA made the payments to the contractors as per their bills and execution of work after deducting the tax at source (TDS) u/s 194C of the Act which was also credited to the account of the Central Government. He has further submitted that the assessee has explained before the A.O that the BDA has considered these payment as part of their income and also issued a declaration u/s 26A issued by the Accountant placed at page 77 to 92 of the paper book. Therefore, the Ld.AR has submitted that once the BDA has considered this amount as part of their income then in view of the first provisio to Section 201(1) of the Act the assessee cannot be held as assessee in default. In support of this contention he has relied upon the judgment of Hon'ble Supreme Court in case of Hindustan Coca Cola Beverages P. Ltd vs. CIT 293 ITR 226 as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 01.03.2017 that the said fund was received from the assessee tax deductor for various construction work like CC road construction, Naali construction, community hall construction, construction and repairing work of various hostel at different place etc.; which were clearly contractual in nature within the meaning of section 194C of the Act. The BDA has also deducted TDS from payment made to sub-contractor as per the reply furnished. Thus, there exist contract between BDA and assessee tax deductor in furtherance which he has made the payments and the provisions of TDS u/s.194C are clearly attracted in respect of payment to BDA. (b). Though, it has been submitted by the assessee tax deductor that BDA have considered the said payments made to them in their total income and have filed their returns of income, yet no any evidence as to furnishing of returns of income by them was furnished. Also, no any certificate in form no. 26A as prescribed as per rule 31ACB of IT rules 1962 was furnished from an accountant to the effect to proviso to section 201(1) of the Act." 5.1 Thus in sub-para (b) the A.O has clearly mentioned that the assessee has submitted that BDA has considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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