TaxTMI 
TaxTMI 
2016 (2) TMI 116
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....ears under consideration is that the Commissioner of Income Tax (Appeals) erred in confirming the order of the Assessing Officer holding the assessee bank as "Assessee in Default" under sec. 201(1) and raising demand of Rs. 2,38,735/- in the Assessment Year 2011-12, Rs. 2,81,260/- in the Assessment Year 2012-13 and Rs. 3,11,602/- in the Assessment Year 2013-14 including interest under sec. 201(1A) of the Act. 3. Brief facts of the case are that the assessee is a banking company engaged in the business of banking. On verification of information obtained under sec. 133(6) of the Income Tax Act, 1961, the ITO (TDS), Ward-1, Belagavi found that during the years under consideration, the assessee has paid an interest of Rs. 16,24,072/- in the ....
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.... categorically stated that Visvesvaraya Technological University was not entitled to exempt under sec. 10(23)(iiiab) of the Income Tax Act, 1961. According to the Assessing Officer, as the Hon‟ble High Court has held that income of Visvesvaraya Technological University was not exempt under sec. 10(23)(iiiab) of the Act the claim of the deductor was not in order. The Assessing Officer further observed that Visvesvaraya Technological University has neither furnished to the assessee a certificate from the Income Tax Department for low deduction/no deduction of tax in respect of Visvesvaraya Technological University nor Form No. 15G and therefore, he held that the assessee bank was under statutory obligation to deduct tax from interest pa....
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....need to be satisfied for claiming relief under these provisions. In the case of the assessee, no return of income for the assessment years under consideration was filed by Visvesvaraya Technological University under sec. 139 of the Act, but was subsequently filed, in response to notice under sec. 148 of the Act. Further, the income shown in the return is NIL and hence, Visvesvaraya Technological University had not taken into account the sum for computing its income for the relevant assessment years. No taxes had been paid by the deductee even while filing its return in response to notice under sec. 148. No certificate was furnished from the Chartered Accountant in Form No. 26A during the initial stage of the proceedings. Therefore, Commissi....
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.... case, the undisputed facts are that the assessee bank has paid interest on term deposits of Rs. 16,24,072/- in the Assessment Year 2011-12, Rs. 20,83,546/- in the Assessment Year 2012-13 & Rs.25,33,431/- in the Assessment Year 2013-14 without deducting TDS thereon to Visvesvaraya Technological University. As the total payment of interest exceeded to Rs. 10,000/- during the year, therefore, the Assessing Officer treated the assessee as „assessee in default‟ under sec. 201(1)/(1A) for failure to deduct TDS under sec. 194A of the Act and held the assessee liable for Rs. 2,38,735/- in the Assessment Year 2011-12, Rs. 2,81,260/- in the Assessment Year 2012-13 and Rs. 3,11,602/- in the Assessment Year 2013-14. 10. On appeal, Commi....
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.... in the case of Hindustan Coca Cola Beverage P. Ltd. (supra). 13. We find that it is not in dispute that the recipient of interest income i.e. Visvesvaraya Technological University has filed its return of income and has included the interest paid by the assessee as its income in the said return of income. As per sec. 4 of the Income Tax Act, it is the recipient of interest who is liable to pay tax. The machinery of TDS provisions made in statute is to facilitate the collection of that tax which is the principally payable by the recipient of the income. The TDS is not a separate or independent tax. Once the recipient of the income has included, the income paid by the payer and disclosed the same to the Department and paid tax thereon as p....