TaxTMI 
TaxTMI 
2016 (1) TMI 247
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....ct of the payments made by the assessee to RSAMB on account of statutory contribution, against which the assessee received professional and technical services from RSAMB." 2. In all the appeals, the only ground of the revenue is against not holding the provisions of Section 194J of the Income Tax Act, 1961 (in short the Act) is applicable on payments made to Rajasthan State Agricultural Marketing Board (in short RSAMB). The ITO(TDS) observed that the assessee had made payments to RSAMB but no TDS has been deducted, which is covered U/s 194C of the Act. Non-deduction of tax at source on the above payments U/s 201(1) is worked out as under:- F.Y. Amount paid Amount of non deduction of tax at source U/s 201(1) Interest leviable U/s....
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....d to pay the tax in accordance with this section, the responsible person is liable to pay simple interest @ 12% per annum. Therefore, he calculated TDS amount and interest U/s 201(1)/194J of the Act for A.Y. 2006-07 at Rs. 8,15,479/-, for A.Y. 2007-08 at Rs. 7,97,074/-, for A.Y. 2008-09 at Rs. 24,14,329/-, for A.Y. 2009-10 at Rs. 23,52,367/- and for A.Y. 2010-11 at Rs. 15,43,378/- and calculated interest U/s 201(1A) for A.Y. 2006-07 at Rs. 6,02,064/-, for A.Y. 2007-08 at Rs. 5,28,041/-, for A.Y. 2008-09 at Rs. 9,27,893/-, for A.Y. 2009-10 at Rs. 9,07,187/- and for A.Y. 2010-11 at Rs. 2,20,005/- and created a demand accordingly. 3. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the lear....
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....reating the assessee in default, the A.O. should have gone through explanation to section 191 of the I.T. Act. For ready reference, the same is reproduced below:- "In the case of income in respect of which provision is not made under this chapter for deducting income-tax at the time of payment, and in any case where income-tax has not been deducted in accordance with the provisions of this chapter, income-tax shall be payable by the assessee direct. Explanation : For the removal of doubts, it is hereby declared that if any Person including the principal officer of a company a). who is required to deduct any sum in accordance with the provisions of this Act; or b). referred to in sub-section (1A) of section 192, be....
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....of making goods the loss of revenue arises only when there is indeed a loss of revenue and the loss of revenue can be there only when recipient of income has not paid tax. Therefore, recovery provisions under section 201(1) can be invoked only when loss of revenue is established, and that can only be established when it is demonstrated that the recipient of income has not paid due taxes thereon. In the absence of the statutory powers of requisition any information from the recipient of income, the assessee is indeed not always able to obtain the same. The provisions to make goods the shortfall in collection of taxes may thus end up being invoked even when there is no shortfall in fact. On the other hand, once assessee furnishes the requisit....
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.... the RSAMB. The RSAMB is a parental body of Krishi Upaj Mandi Samiti. The Krishi Upaj Mandi Samiti is required to make a contribution out of its income to the marketing board and the marketing board is required to utilize these receipts on improvement of the agricultural market in the State, which is owned by the Krishi Upaj Mandi Samiti. The Marketing Board also gives aid and grant to Krishi Upaj Mandi Samiti to enable them to discharge their duties and functions satisfactorily. The CBDT Circular 741 dated 18.04.1996, Circular No. 745 dated 19.07.1996, Circular No. 22/68-ITB dated March 28/May 13, 1968 are also squarely applicable in the case of the assessee. The Samiti is required to contribute as per Section 18A of the Rajasthan Agricult....