TaxTMI 
TaxTMI 
2020 (3) TMI 224
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....ct, 1961 (in short 'the Act') for Assessment Year 2012-13 and Assessment Year 2013-14 respectively. 2. In view of the identical impugned orders and grounds raised in both the appeals, same were heard together and disposed of by way of this consolidated order for convenience. The grounds in ITA No. 3109/Del/2017 for Assessment Year 2012-13 are reproduced as under: 1. "That the ld. Commissioner of Income Tax (Appeals) has erred in law and on facts, in holding that assessee is liable to pay interest u/s 201(1A) of the Income Tax Act, 1961 for non-deduction of tax at source u/s 194-I of the Income Tax Act, 1961 on payment of 1% of lease premium of Rs. 1,35,12,047/- (Rs. 71,89,000/- and Rs. 63,23,047/-) without appreciating the facts....
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....ue involved is levy of interest under section 201(1A) of the Act in respect of the TDS of Rs. 13,51,205/- and of Rs. 6,32,310/- for Assessment Year 2012-13 and 2013-14 respectively, on lease rent paid to New Okhla Industrial Development Authority (NOIDA), on which tax was not deducted by the assessee company. 5. Briefly stated facts of the case are that for Assessment Year 2012-13 notice under section 201(1)/201(1A) of the Act was issued on 18/03/2014 and order dated 28/03/2014 was passed by the Learned Assessing Officer holding the assessee as assessee-indefault and creating liability of Rs. 55,15,938/- (Rs.43,55,239/- on account of non-deduction of tax at source under section 194I of the Act on amount of Rs. 4,35,52,987/- and Rs. 11,60....
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....he decision of the Hon'ble Delhi High Court in the case of Rajesh Projects (India) Ltd. versus CIT (2017) 392 ITR 483 (Delhi), but the Ld. CIT(A) further directed the Assessing Officer to re-compute the interest as per first proviso to section 201(1A) from the date on which tax was deductible till the date of filing of the return of income by the deductee (i.e. NOIDA) in respect of the TDS of Rs. 13,51,205/- on lease rent paid to NOIDA for Assessment Year 2012-13 and TDS of Rs. 6,32,310/- on lease rent paid for Assessment Year 2013-14. 8. Before us, the assessee is aggrieved with the direction of the Ld. CIT(A) for raising liability of interest on the amount of TDS for the period from the due date to the date of the filing of the return ....
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....the Hon'ble Delhi High Court in the case of Rajesh Project (India) Private Limited (supra) on the issue of liability to pay TDS on lease rentals to the GNOIDA has directed as under: "In view of the above conclusions, it is hereby directed that wherever amounts have been paid by the petitioners, towards TDS as a result of the coercive process used by the Revenue, the GNOIDA shall make appropriate orders to credit/reimburse such payments. In case payments are made through deposit, over and above the rental amounts paid to the GNOIDA, without TDS, the income tax authorities shall not pursue any coercive proceedings; GNOIDA shall duly reimburse the petitioners for such amounts. Any amounts deposited in the court or with the Revenue, sh....
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....l paid to GNOIDA, without TDS, the Income-Tax Authorities has been directed not to issue any coercive proceedings and GNOIDA has been directed to reimburse the assessee for such amounts and any amount deposited in the court or with the Revenue to the extent of TDS liability. 15. Thirdly, the Income-Tax authorities have been directed not to take any coercive method for recovery of the amounts or the penalty, once the basic liability (with interest to be paid by the GNOIDA) has been satisfied. 16. In the instant case, the Ld. CIT(A) in Assessment Year 2012-13 has directed the Learned Assessing Officer as under: "7.11 This claim of the appellant has some merit. The appellant had a reasonable cause for not deducting tax on the pa....