2014 (1) TMI 648

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....ment year 2008-09. 3. The facts of the case, as noted in the appellate order, are that the ITO (TDS & Survey) conducted an inspection of the office of the Executive Engineer, PWD (PMGSY), Hathras to verify proper deduction of tax at source and its deposit into the account of Central Government. During the inspection, it was noticed by the AO that the tax has not been deducted on professional and contractual payments as required u/s. 194C, 194-I and 194J of the IT Act for F.Y. 2007-08 and 2008-09. The AO computed such tax liability amounting to Rs.3,74,973/- (3,59,796 + 15177 interest) for the assessment year 2008-09 under appeal. This order is dated 05.03.2009 u/s. 201(1)/201(1A). The other facts of assessment year 2009-10 are not reproduc....

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....sit of tax demand, the details of which are that in assessment year 2008-09, Rs.12,195 (Interest) deposited on 05.12.2009. The ld. CIT(A) on consideration of the above facts found that since AO's action has been accepted by the assessee and short tax along with interest have been deposited, the appeal on this issue becomes infructuous and is accordingly dismissed. However, it appears that the tax deposited in the assessment year 2008-09 is less than what has been computed by the AO. The assessee is directed to deposit balance amount and produce original challans before the AO for the assessment year under appeal and the AO is directed to give credit of the same as per law. The ld. CIT(A), however, with regard to payment of vehicle hiring ch....

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....deposited the tax from running bills of the contractor and submitted evidence before the AO in respect of such deposits. The assessee, therefore, sought rectification of the order dated 05.03.2009 by submitting that the demand of Rs.3,59,796/- and interest of Rs.15,177/- have been deposited time to time, which have been recovered. The AO accepted the explanation of the assessee and suitably rectified the order. The AO, however, further found that tax have not been deducted at the time of payment as required u/s. 194C of the IT Act, therefore, the deductor is liable to pay interest on delaying the tax deduction. The AO accordingly worked out short deduction of Rs.15,908/- and interest of Rs.12,195/- as per rectification dated 29.04.2009. It ....

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....e it to file an appeal to the Tribunal; the appeal of the department regarding the deletion of the amount was neither competent nor capable of being entertained by the Tribunal." 6.1 The Hon'ble Punjab & Haryana High Court in the case of Banta Singh Kartar Singh Vs CIT, 125 ITR 239 observed: "An order based on an agreement cannot give rise to grievances and the same cannot be agitated in appeal." It was held:- "Held, that it was on the agreement of the assessee, which agreement mentioned the rate as well as the figure, that penalty had been levied. The assessee had no right to agitate this question in appeal. The Tribunal was right in law in not going into the question whether the penalty was in law the minimum penalty leviable under s.....