TaxTMI 
TaxTMI 
1995 (2) TMI 117
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....ancial year 1990-91, assessee had debited in the receipts and payments account, a sum of Rs. 4,17,96,663 on account of interest on registration deposits and on account of interest on the deposits from the SFS allottees. For assessment year 1991-92, the amount so debited was Rs. 4,59,81,656. Since the Assessing Officer was of the view that provisions of section 194A(3)(i) of the Income-tax Act, 1961 were attracted in this case and that assessee was liable to deduct tax in respect of the interest adjusted, paid or credited to the depositors under various schemes, the Assessing Officer issued a show-cause notice to the DDA as to why action under section 201(1) and 201(1A) may not be taken. 2. Assessee claimed that provisions of section 194A....
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....bsp; Rs. 1990-91 46,81,226 26,33,175 73,14,401 1991-92 51,94,946 21,42,917 73,37,863 3. Assessee appealed to the CIT(A) --- V,New Delhiwho vide his order dated28th November, 1994dismissed the appeals of the assessee. 4. The learned counsel for the assessee Shri G.C. Sharma placed a cop....
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.... housing are announced by the DDA from time to time for the people at large. There was a system for registration under various categories of houses applied. Applications were required to make deposits for being registered under various categories. The deposits varied from Rs. 2,000 to Rs. 15,000. Under the special housing schemes and Ambedkar Awas Yojana, nominal amounts were required to be deposited for registration. Under the HUDCO registration scheme the amount of deposit varied from Rs. 1,200 to Rs. 5,000 add under the SFS, the registration deposit was Rs. 10,000 and Rs. 15,000. It is not disputed before us that the registration deposits received by the appellant did not exceed Rs. 15,000 under any of the categories for which registrati....
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....f Rs. 3,48,25,312. As against the liability which stood as on 1-4-1991 at Rs. 29,38,74,760, the liability as on 31 st March, 1992 on account of interest was Rs. 30,50,31,104. On examination of the adjustment register Assessing Officer has come to the conclusion that the amount adjusted in each case far exceeds Rs. 2,500 p.a. As per the details placed at page 48 of the paper book some of the instances are available where the interest adjusted in several cases is more than Rs. 14,000. It is on the basis of this adjustment register, the Assessing Officer has concluded that assessee has failed to discharge its obligation under section 194A(3)(i). On having peeped deep into the system of accounting adopted by the DDA, we are satisfied that the v....
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.... :--- (i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub-section (1) to the account of, or to the payee, does not exceed two thousand five hundred rupees. " It was argued before us that the amount of interest has not been credited to the account of the registrants in each year and adjustment has been made only at the time of allotment or at the time of cancellation. According to the learned D.R., the provisions of section 194A get attracted when the amount of interest is credited or paid. Since the sum of Rs. 2,500 referred to in sub-section (3) of section 194A refers to the ....