2016 (5) TMI 215

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....ies below is contrary to law and facts. 2) The learned authorities below erred in concluding that the amounts paid to Shri Chinnaswamy Raju ("the payee") is a commission covered by section 194-H of the Income-tax Act, 1961 when no such conclusion was possible from the sale deeds concluded between the appellant and the payee. 3) The learned Commissioner of Income-tax (Appeals) having given a finding that the payee has signed the sale deeds as confirmed party erred in concluding that the payee had no interest in the land and that he was a mere mediator facilitating the sale. 4) The learned authorities below erred in determining the nature of the consideration as commission covered by section 194-H of the Act by plac....

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.... the assesseecompany purchased lands belonging to the following eight persons through one Mr.Chinnaswamy Raju : i. Shri T.Ramachandra ii. Shri H.V.Nagendrappa iii. Shri B.C.Mannoji Rao iv. Smt. N.Sujatha v. Shri N.Jaganatha Rao vi. Shri Srinivasa Rao vii. Shri Sudhakar Rao viii. Shri N.Venkobarao Deputy Commissioner of Income-tax (TDS) [DCIT(TDS] noticed from the agreement between Shri Chinnaswamy Raju and Shri Mannoji Rao, owner of land admeasuring 2 acres 20 odd guntas that Shri Chinnaswamy Raju was only a middleman facilitating the transaction. Therefore, DCIT(TDS) was of the opinion that payments made by the assessee-company to Shri Chinnawamy Raju are only in th....

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....e relevant point of time are as under: "(3) No order shall be mad under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, any time after the expiry of - i. Two years from the end of the financial year in which the statement is filed in a case where the statement referred to in section 200 has been filed; ii. six years from the end of the financial year in which payment is made or credit is given, in any other case:" Thus, the statute prescribes that the proceedings u/s 201 can be initiated by the TDS office within the period of 2 years from the end of the financial year in which statement referred to in sec.200 i....