2013 (1) TMI 975

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.... to 2011-12 in case of the assessee. 2. Common issues being involved, all these appeals and Cross objections were heard together and are being disposed of by this common order for the sake of convenience and brevity. 3. The assessees have has pleaded the issues in the Cross Objections supporting the orders of the learned CIT(A) whereas the Department has raised the issues assailing the orders of the learned CIT(A). 4. The common issues raised by the Revenue in the case of the assessee, The Project Director, National Highway authority of India, read as under : "1. On the facts and circumstances of this case, the Ld. Commissioner of Income Tax (Appeals)-l, Bhubaneswar does not appear to be justified in holding that the Natio....

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....is order at para 4.4 of page 4. 3. The Ld. Commissioner of Income Tax (Appeals)-l, Bhubaneswar has referred to the agreement that the collecting agency is only getting service charges for supplying man power @14% per month under the service contract. This goes to indicate that there exists some kind of agreement/contract (clause 17 of the agreement mentioned at page 3 of the order). This being so, how can it be said that there is no contract. The Ld. Commissioner of Income Tax (Appeals)-l, Bhubaneswar has failed to appreciate the issue." 5. Both the parties were heard regarding the issues raised by the Revenue and their legal implications. 6. On careful consideration of the material made available to the Tribunal, the undispu....

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....nd the collecting entities does not amount to any contract granting lease or license and does not involve transfer of any right or interest in parking load of toll plaza or a mind or a quarry to other persons and the learned CIT(A) further observed that the assessee has not granted lease or license nor entered into a contract or otherwise transferring the right of toll plaza in favour of the contractors for use of the toll plazas for the purpose of business against consideration. Therefore, he found that this activity will not come within the provisions of Section 206C(6A) of the I.T.Act,1961. Therefore, the assessee has no obligation to deduct any TCS from the collecting entities. Thus observing the learned CIT(A) allowed the appeals of th....