2023 (4) TMI 473

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....ming the action of Ld. A.O. in treating the assessee in default as per Sec 201(1)/201(1A) Income Tax Act, 1961. 2. That in any view of the matter and in any case, the reassessment order is bad in law and against the facts and circumstances of the case. 3. That in any case and in any view of the matter action of Ld. CIT(A) in not quashing the impugned assessment order as the assessment order is no: sustainable on various legal and factual grounds. 4. That CIT(A) has erred in law and on the facts in confirming the action of Ld. AO for treating the assessee in default for Rs. 43,03,610/- on account of non-compliance of TDS provisions us 194A and that too without appreciating the facts and circumstances of the case. 3. First of all i....

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....arned AR, therefore submitted that when the amount paid by the assessee to its allottee on account of delay is not an interest payment then the assessee is not required to deduct TDS under the provision of section 194A of the Act or any other provision of the Act, therefore the order of authorities below may kindly be set aside. 5. Replying to the above the learned Senior DR supported the orders of authorities below and submitted that the assessee had paid interest to the parties as per copy of the account obtained during the course of survey proceedings u/s. 133A of the Act, and the name of expenses thereto has been changed as compensation on cancelation in its books of accounts by the assessee as well as in the auditor's report after sur....

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....of payment as interest till September 2009 then what prompted the assessee to convert the nomenclature of payment from interest to compensation and noncomplying the TDS provision of section 194A of the Act. 7. In the rejoinder the learned AR submitted that under wrong assumption the assessee was consistently commiting mistake and treating the amount of compensation as interest and making the payment after deduction the TDS. Thereafter, keeping in view the advice of tax expert to rectify the mistake then the assessee was right in changing the nomenclature as per the factual position and intention of payment. Therefore, merely because in the earlier point of time under an advertent mistake, the assessee was treating the payment as interest h....