TaxTMI 
TaxTMI 
TaxTMI 
2013 (11) TMI 807
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....Taxation on Consumption) Act, 1959, the duty to collect electricity taxes on the consumption of electricity has been vested with the respondent. The said taxes were earlier collected on behalf of the authority by the erstwhile Karnataka Electricity Board. Later the same was vested with KPTCL. Subsequently the Government formed several entities like BESCOM, GESCOM, HESCOM, MESCOM (hereinafter referred to as ESCOMs) who have been entrusted with the task of collecting the tax. The respondent-assessee pays what is called a 'rebate' to the entities which collect electricity taxes on its behalf. 3. According to the Deputy Commissioner of Income-tax, Circle 18(1), Bangalore (the Assessing Officer), the rebate given by the respondent to the several entities who collect taxes on behalf of the respondent, is in the nature of 'commission' as contemplated u/s. 194H of the Income-tax Act, 1961 [hereinafter referred to as "the Act" in short"] and therefore the respondent ought to have deducted tax at source at the time of making payment or crediting to the account of those entities. Accordingly proceedings were initiated against the respondent u/s. 201(1) of the Act for treating the respondent ....
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....06 2,75,06,041 1,79,85,415 60,84,021 38,51,061 32,50,000 2007-08 3,73,56,013 68,11,603 55,45,106 38,19,567 50,56,683 3.9 In this regard, the appellant has furnished copies of the returns of income of the payees for the relevant assessment years. The contention of the appellant appears to be correct. In such a case, TDS u/s 201 need not be collected once again from the appellant. The AO is directed to work out the relief to the appellant u/s 201(1) after verifying the payment of taxes, if any, due as per the returns of income of the payees relied upon by the appellant. 3.10 As regards interest levied u/s 201(1A), which is mandatory and compensatory in nature, the same would remain and stands confirmed. However, the appellant has put forward the contention that the deductees have filed returns of income declaring the commission income therein and paid the tax thereon. The AO is directed to verify the dates of filing of returns of income and payment of taxes by the payees and, accordingly, interest u/s 201(1A) is to be charged up to the date of filing of such returns of income by the deductees for the respective years in question. The AO ....
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....ciate the fact that such a stance would nullify the very code of TDS and TCS as well as the express provisions of section 191 of the Act. 8. The CIT(A) has erred in not appreciating the fact that the deductor was not in the knowledge of any tax payment effected by the deductee at the time of deduction. 9. The CIT(A) has erred in not appreciating the fact that the deductor was not in the knowledge of any tax payment effected by the deductee even as on the due date for filing the eTDS statement. 10. The CIT(A) has erred in not appreciating the fact that the deductor was not in the knowledge of any tax payment effected by the deductee even at the time of proceedings before the Assessing Officer. 11. The CIT(A) has failed to appreciate the nature of contract between the Government and the deductor regarding deduction of tax and payment of the same to the Central Govt. 12. The CIT(A) has failed to appreciate there is a breach of contract by the deductor. 13. The CIT(A) has failed to appreciate the fact that the performance of a contract between the deductee and the Government does not absolve the deducto....
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....d determine, where necessary, the amount of tax payable on the basis of such fresh assessment ; (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty ; (c) in any other case, he may pass such orders in the appeal as he thinks fit." By the Finance Act, 2001, in section 251, in sub-section (1), in clause (a), the portion beginning with the words "or he may set aside" and ending with the words "on the basis of such fresh assessment;" were omitted with effect from the 1st day of June, 2001. It is the plea of the revenue that by reason of the above omission the CIT(A) has no powers to remand to the AO for making a fresh assessment. 10. As already stated, we are of the view that proceedings u/s.201(1) of the Act cannot be said to be akin to proceedings for assessment in the context of Sec.251(1)(a) of the Act. We also notice that Sec.246-A of the Act which provides for what orders are appealable draws a distinction between an order of assessment and an order u/s.201(1) of the Act. We are of the view that the applicable provisions will be section 251(1)(c) of the A....