Tribunal Decision on TDS Appeals: Partial Appeal Allowed, TDS Demand Deleted, Interest Calculation Clarified

The Tribunal partially allowed the appeal in ITA No. 318/Hyd/2018 concerning the condonation of delay in filing appeals by Revenue and the assessee's appeal related to TDS on payments to NECL and NUTPL. The CIT(A)'s decision was upheld regarding the demand under Section 201(1) but accepted evidence for the payment to NUTPL, deleting the TDS demand and interest. The Tribunal directed the Assessing Officer to calculate interest under Section 201(1A) only until NECL's income tax return filing date. The appeals in other related cases were remitted for further verification.

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Issues Involved:
1. Condonation of delay in filing appeals by Revenue.
2. Assessee's appeal related to Section 201(1) & 201(1A) concerning TDS on payments to M/s. Navayuga Engineering Company Limited (NECL) and M/s. Navayuga Udipi Tollway Private Limited (NUTPL).
3. Interest calculation under Section 201(1A) on delayed TDS remittance.
4. Revenue's appeal against deletion of demand related to the payment to NUTPL.
5. Assessee's appeal against interest under Section 201(1A) and double taxation concerns.

Condonation of Delay:
The Revenue filed appeals with a delay of 3 days. The Tribunal, satisfied with the reasonable cause for the delay, condoned it and admitted the appeals for hearing on merits.

Assessee's Appeal Related to Section 201(1) & 201(1A):
- Facts: The assessee-company, engaged in construction and operation of a sea port, was found during a TDS survey to have delayed TDS deductions and remittances for payments made to NECL and NUTPL.
- Assessee's Submission: The assessee argued that NECL had filed its return of income, including the Rs. 5 crores payment, and paid the tax. Hence, as per the Supreme Court's judgment in CIT vs. Hindustan Coca-Cola Beverage Ltd., the payer should not be held as an assessee in default.
- CIT(A)'s Decision: The CIT(A) upheld the demand under Section 201(1) due to the absence of Form 26A but accepted the evidence for the Rs. 54.24 crores payment to NUTPL as share application money, thus deleting the consequent TDS demand and interest.
- Tribunal's Decision: The Tribunal directed the Assessing Officer to calculate interest under Section 201(1A) only up to the date of filing the return of income by NECL, following the Supreme Court's decision.

Interest Calculation under Section 201(1A):
- Assessee's Argument: The assessee contended that interest under Section 201(1A) should not be charged as NECL had paid the due tax, and any interest should be limited to the date of filing the return.
- Tribunal's Decision: The Tribunal dismissed the assessee's argument, stating that the obligations under Sections 201(1) and 234B are distinct and cannot be equated. The interest under Section 201(1A) is chargeable until the date of tax payment by the payee.

Revenue's Appeal Against Deletion of Demand Related to Payment to NUTPL:
- Revenue's Argument: The Revenue challenged the CIT(A)'s decision, arguing that the payment was towards EPC contracts and not share application money, citing discrepancies in the balance sheets and transactions.
- Tribunal's Decision: The Tribunal remitted the issue back to the Assessing Officer for further verification of the transactions and the purpose of the payments, considering the discrepancies noted.

Assessee's Appeal Against Interest Under Section 201(1A) and Double Taxation Concerns:
- Assessee's Argument: The assessee argued against the interest under Section 201(1A) on the grounds of double taxation, as NECL had already paid interest under Section 234B.
- Tribunal's Decision: The Tribunal dismissed the argument, reiterating the distinct statutory obligations under Sections 201(1A) and 234B.

Conclusion:
- The appeal in ITA No. 318/Hyd/2018 was partly allowed.
- The appeals in ITA Nos. 275/Hyd/2018, 319/Hyd/2018, and 276/Hyd/2018 were remitted back to the Assessing Officer for further verification and are treated as allowed for statistical purposes.

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