2011 (3) TMI 1019

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.... the Income-Tax Act, 1961 (for short "the Act") has been filed by the Revenue against the order dated 14.6.2005, passed by the Income Tax Appellate Tribunal, New Delhi, Bench 'D' (in short "the Tribunal") in ITA No. 932/DEL/2005, relating to the assessment year 2002-2003.   3. The appeal was admitted by this Court on 17.9.2007 for determination of the following substantial question of law: "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT erred in law in confirming the order of the CIT(A) in quashing the order passed by the Assessing Officer under Section 201 and 201(1-A) of the Act charging tax and interest for not deducting tax at source from commission paid to the Agents?"   4. The facts, in ....

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....ents as commission charges.   9. Learned counsel for the Revenue relied upon a communication dated 12.12.2003 from the Government of India, Ministry of Finance, Department of Economics Affairs (Budget Division), New Delhi addressed to all Joint National Savings Commissioners wherein it had been stated that where the National Savings Organisations and the Post Offices pay commission to the Small Savings Agents/investors during the period from 1.6.2001 to March, 2002, the deduction of tax at source was required to be made.   10. The stand of the assessee before the CIT(A) was that a communication dated 4.12.2002 had been issued by the Ministry of Finance and Company Affairs wherein it was provided that no tax was required to b....

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....the Income Tax Act."   4.2. A perusal of the above clearly shows that the AO erred in charging tax u/s 201 of the I.T. Act and interest u/s 201(1A) of the I.T. Act after holding that the Senior Post Master, General Post Office, Faridabad was in default for not deducting tax at source from the commission paid to the agents. In view of the decision of the Government of India brought to the attention of the undersigned by the appellant the order passed under Section 201 and 201(1A) of the I.T. Act is hereby quashed and the demands raised amounting to Rs. 32,65,994/- is cancelled." 11. The Tribunal had affirmed the aforesaid order of the CIT(A). 12. We are unable to accept the contention of the counsel for the Revenue. A reading o....