2022 (6) TMI 749

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....13, by the Commissioner of Income Tax (Appeals)-1, Jabalpur ('CIT(A)' for short) vide again a consolidated order dated 16/11/2015. The appeals raising the same issues, per identically worded grounds, the same were heard together, and are being disposed of per a common, consolidated order. 2. The short issue/s in these appeals is the maintainability of the order/s u/s. 201 & 201(1A) for failure to deduct tax at source and interest thereon (for the delayed deposit with the Central Government) respectively for the relevant years, since upheld by the first appellate authority. 3. The assessee is a Department of the State Government engaged in supply of food grains through Public Distribution System (PDS) in the area of district Jabalpur, MP, ....

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....ity before the AO and the subsequent clarifications are based on unsubstantiated argument which cannot be accepted. The aspect of there being no loss to revenue because deductee societies are exempted from tax is a plea which can be examined only in course of regular assessment and not in TDS proceedings. The liability to deduct TDS within my understanding cannot be diluted or removed even if the income of recipient is exempt. In any case, there is a specific procedure which is already prescribed u/s 197 of the IT Act which could have been resorted to by the deductee. However, this provision has not been utilised. The reasoning of the AO is crystal clear and the aspect of non-deduction of TDS on the various heads clearly stands admitted. It....

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.... he shall be pressing only Ground 9, which reads as under:- "The ld. CIT(A) failed to examine whether income of recipient is exempt from tax or whether tax has been paid by the recipient in view of judgment of Hon'ble Apex Court in Hindustan Cola." The ld. CIT(A) having dealt with the said aspect, Shri Srivastava, upon being enquired by the Bench in the matter, would admit that none of the societies had claimed exemption u/s. 80P, on the underlying strength of which, as also evident from the impugned order, the plea as to the applicability of the decision in Hindustan Coca Cola Beverage P. Ltd. v. CIT [2007] 293 ITR 226 (SC) was raised before the first appellate authority. It is clear that neither before him nor before us there is an....