TaxTMI 
TaxTMI 
2018 (4) TMI 46
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....Income Tax Act, 1961 (Act) any person responsible for paying any sum to any resident for carrying out any work in pursuance of any contract shall at the time of payment deduct tax at source at the prescribed rate. The Assessee did not deduct tax at source at the time of making payment. Under section 201(1) of the Act if any person who is required to deduct tax in accordance with the provision of section 194C of the Act does not deduct tax at source, then such person shall be deemed to be an assessee in default in respect of such tax not deducted tax at source and is liable to pay sum equivalent to tax not deducted at source. Under section 201(1A) of the Act the person who fails to deduct tax at source shall also be liable to pay interest at....
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....yments made to truck owner per day has not exceeded the limit of Rs. 20,000 so as to invoke provisions of sec.194C and as per CBDT Circular No.715 dated 08.08.1995 the various payments on different days in a year to truck provider do not pertain to a single contract but constitute independent GR and that being so, his action in treating the assessee as assessee in default u/s. 201(1) is arbitrary, erroneous and bad in law. 4) That, without any prejudice to the above, the Ld. C.I.T.(A) erred in not giving any effect to the certificate u/s.197 dated 29.05.2003 issued by the A.O. allowing to deduct tax at the lower rate of 0.5% on the alleged ground of non-compliance of hearing notices in spite of the fact that the same was already on record ....
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.... passing the order u/s 201/201 (lA) of the Income Tax Act, 1961. 10. That the order passed by the Ld. AO and subsequently confirmed by the Ld. CIT(A) should accordingly be quashed and the appellant be given such relief(s) as prayed for. " 7. In the applicable for admitting the additional grounds the assessee has submitted that the assessee Pawansut Management Ltd., merged with Takshila Credit & Holding Pvt. Ltd., pursuant to an order dated 25.06.2008 of the Hon'ble Calcutta High Court in Company Petition No.150 of 2008. He also brought to our notice that as per the scheme of amalgamation approved by the Hon'ble High Court, the effective date of amalgamation was 01.04.2007. His submission was that the entity by name Pawasut Managem....
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....he contention in the additional ground is purely a legal ground the same is admitted for adjudication. 10. As far as the invalidity of the order u/s 201(1) and 201(1A) of the Act on the ground that it is passed against a non existent person is concerned, it is not disputed before us that Pawansut Management Ltd. Merged with Takshila Credit & Holding Pvt.Ltd pursuant to a scheme of amalgamation. As per the scheme of amalgamation the appointed day for operation of the scheme of amalgamation was 01.04.2007. As per clause-3 of the scheme, with effect from the appointed date all debts and liabilities of Pawansut Management Ltd., will stand transferred to the transferee company Takshila Credit & Holding Pvt. Ltd now known as Tuaman Infrastructur....
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....#39;ble ITAT, Kolkata in the case of Pampasar Distillery Ltd vs. Assistant Commissioner of Income Tax, Circle-5, Kolkata [2007] 15 SOT 331 07. The Hon'ble ITAT, Mumbai in the case of Makers Development Services Ltd vs DCIT (1991) 41 TTJ 301 (ITAT[Bom]) 08. The Hon'ble ITAT, Delhi in the case of Modi Corporation Ltd vs JCIT Reported in [2006] 105 TTJ 303 (ITAT Delhi) 09. The Hon'ble Karnatak High Court in the case of CIT vs Intel Technology India Pvt. Ltd. Reported in [2016] 380 ITR 272 (Kar) 12. The proposition that emerges from the aforesaid decision is that He pointed out that under the Income Tax Act, 1961 an assessment can be made only against a person as defined u/s 2(31) of the Act. A company after it is dissolved cann....