TaxTMI 
TaxTMI 
2014 (3) TMI 644
X X X X Extracts X X X X
X X X X Extracts X X X X
....ving been heard together, we are disposing of them by a single order for the sake of convenience. 3. In these appeals, deduction u/s 201(1) and levy of interest u/s 201(1A) on various amounts for different years have been challenged by the assessee before the first appellate authority who noted the facts and details from 1-3 of the order as under: "That the assessee has given contract (as such TDS provisions are applicable) for earth work, Transportation, repair and Maintenance, Hire Charges, Work sublet etc. is a mere assumption of the A.O. and on merely assumption, one cannot arrive at 'conclusion'. The assessment needs to be set aside. On 17.01.2007, the survey was conducted by ACIT, TDS Circle - 50(1), New Delhi on the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t, 1961. Since the assessee had not deducted tax at source u/s 194-C of Income Tax Act, 1961 which it was required to deduct and pay to the Government, it has rendered itself liable to pay interest u/s 201 (1 A) of the Act. The calculation of liability of the assessee u/s 201 (1) & 201 (A) is made as under: 4. Assessee's submissions were recorded by Ld. CIT(A) in subsequent paragraphs who concluded to delete such claim of demand u/s 201(1) and interest u/s 201(1A) on various amounts for all the four years by concluding from para 10-13 as under: "I have gone through the submission made by appellant and also survey records. While the 'appellant' had been overwhelmingly denying that he is liable to deduct any TDS on earth wor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th reference to books of accounts, purchase bills and vouchers . Financial year 2005-06 (2006-07) .... All the receipts and purchases have been found accounted for on test check, hence no intervention is made after examination of books of accounts and information filed by the assessee form time to time, the following disallowances were made disallowance of Rs.1,00,000/- was made out of labour expenses and Rs.47,500/- out of truck repair and maintenance. Assessment Year 2007-08 1st Para ..... A detailed questionnaire along with notice U/S 142(1) was issued to the assessee on 19.01.2009. In response to above notices, Sh. P K Aggarwal, Chartered Accountant, authorized representative of the assessee attended the assessment procee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o learn to examine books of accounts properly. If appellant does not produce books, A.O. (TDS) can impound books u/s 133A and derive the right information form records and use negotiation techniques to collect tax as per law. Still if he fails to obtain information form AR/appellant, pass on the information to regular A.O. for necessary action at his end. In my opinion, the A.O. (TDS) should pass all information to regular A.O. after the appellant files returns in next financial year. This will reduce desk work, and A.O. (TDS) can gather more information form many taxpayers in field. It will automatically increase tax base of the department. In view of above order of the Addl. CIT, New Delhi is cancelled. In the result, appeal is allowed." ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he books of accounts produced before the A.O. in regular assessment of the assessee without either calling for the books of accounts and examining them himself. Since, there are serious infirmities and flaws in both the orders, therefore, it would be just and appropriate to set aside the orders of both the authorities below for all the four years and restoring the matters to the file of the A.O. for readjudication of the issues afresh after giving due opportunity to the assessee, which we hold and order accordingly. 8. As a result, all the appeals of the Department are treated to have been allowed for statistical purposes. 9. Order pronounced in the open court on 14th Mar. 2014. ============= Document 1 Head of Expenditure ....