TaxTMI 
TaxTMI 
2018 (6) TMI 1309
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....and are being disposed off together by way of this common order for the sake of convenience. 2. Briefly stated, the facts of the case are as under:- 2.1 The assessee is a co-operative society engaged in the activity of identifying suitable lands and forming a residential layout for allotment of residential sites to its members. In this case a search under Section 132 of the Income Tax Act, 1961 (in short 'the Act') was conducted on 12.9.2013 and thereafter a survey under Section 133A of the Act was conducted by the Assessing Officer for verification of details pertaining to payments made to developers/contractors and tax deducted thereon. From the details filed, the AO noticed that the assessee had entered into certain agreements ....
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....loper/contractor as required u/s 194C of the Act as it was in the nature of works contract. 2.2 Aggrieved by the orders u/s 201(1) and 201(1A) of the Act dated 16.1.2014 for Assessment Years 2008-09 to 2014-15, the assessee preferred appeals before the CIT(A)-13, Bangalore. The ld CIT(A) allowed the aforesaid appeals filed by the assessee for asst. years vide a common order dated 10.11.2016 holding that the assessee was not liable to deduct tax at source on the payments it made to developers/contractors as the provisions of sec. 194C of the Act were not attracted in the case on hand. 3.1 Revenue, being aggrieved by the orders of the CIT(A)-13, Bangalore dated 10/11/2016 for asst. years 2008-09 to 2014-15, has filed these appeals before th....
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.... tax effect is below the prescribed minimum since a composite order has been passed by the learned CIT (Appeals) and therefore para 5 of the CBDT's Circular NO.21 of 2015 dt.10.12.2015 is applicable in this case. For these and other grounds that may be raised during the course of appeal and actual hearing it is prayed that the order passed by the AO u/s. 201(1) and 201(1A) be upheld and the order of the learned Commissioner of Income Tax (Appeals) may be set aside and cancelled." 3.2 The grounds raised (Supra) relates to the single issue pertaining to the deletion of the demands raised u/s 201(1) and 201(1A) of the Act by the ld CIT(A) by following the decision of the co-ordinate bench of this Tribunal in the case of Kautilya House Bui....
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....Secretariat Employees Housing Co-op Society Ltd., in ITA Nos.1324 to 1337/Bang/2015 and (iii) REMCO (BHEL) House Building Co-operative Society Ltd., in ITA Nos.1372 to 1377/Bang/2017. It was prayed that in the light of the above judicial precedents and facts of the case, the impugned order of the ld CIT(A) be upheld. 3.5.1 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial pronouncements cited. On an appraisal of the material before us, we find that there is nothing therein that shows that the assessee is liable to deduct tax at source on payments made to the developers in the years under appeal. 3.5.2 Now coming to the merits of the issue in dispute, it is seen that the....
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....ere fact that the contractor/developer were required to layout roads and undertake other activities before the delivery of the completed sites cannot be either determinative of the facts or need to mean that the agreements entered into by the assessee society is a composite contract and amounts to a works contract. Thus, in our considered opinion, the case of the assessee is squarely covered by the decisions of the Hon'ble Karnataka High Court in the case of Karnataka State Judicial Department Employees House Building Cooperative Society Ltd., (Supra); the relevant portion of which judgment is extracted hereunder:- "the short that fell for the consideration for the Assessing Officer, the Commissioner of Income-tax and the Tribunal was whe....
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.... on similar fact situation, by co-ordinate benches of this Tribunal in the cases of Karnataka State Co-operative Subhadranna Housing Federation Ltd. (ITA Nos.1301, 1307 to 1313/Bang/2015), Railway House Building Cooperative Society (ITA Nos.1139, 1140 & 1344/Bang/2015 & 1343/Bang/2014), and in the case of Kautilya House Building Cooperative Society Ltd., (ITA Nos. 1324 to 1337/Bang/2015 dated 7/4/2016. The ld CIT(A) has observed that in these cases (Supra) also, the contents of the agreements were similar to those of the assesee in the case on hand and the various co-ordinate benches of this Tribunal after examining the same has applied the ratio of the judgment of the Hon'ble Karnataka High Court in the case of Karnataka State Judicial Dep....