TaxTMI 
TaxTMI 
2023 (5) TMI 693
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....JPR/2023 30.03.2022 27.06.2018 U/s 201 2014-15 181/JPR/2023 30.03.2022 27.07.2018 U/s 201 2015-16 182/JPR/2023 30.03.2022 27.07.2018 U/s 201 2016-17 183/JPR/2023 30.03.2022 27.07.2018 U/s 201 2017-18 184/JPR/2023 30.03.2022 27.07.2018 U/s 201(1)/201(1A) 2013-14 185/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2014-15 186/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2015-16 187/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2016-17 188/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2017-18 189/JPR/2023 30.03.2022 23.10.2019 U/s 271C 2. As it is seen that out of eleven appeals of the assessee, six appeals challenge to the levy of TDS demand on the alleged default of the assessee and five related to the levy of penalty u/s. 271C. Since the issues involved in the assessee's appeal for all the years are almost identical and the issues are almost common, except the difference in figure of additions disputed and the amount of levy of penalty in each year. Based on these facts, all these appeals were heard together with the agreement of both the parties and are being d....
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.... the decision to the bench. 4.2 We have heard both the parties and have considered the content of the application for condonation of delay as well as the arguments of the ld. DR on the issue. Based on the materials available on record the bench noted that the assessee prayed for condonation of delay of 304 days. The reasons placed on record has merit and we concur with the submission of the assessee. Thus the delay of 304 days in filing the appeal by the assessee is condoned in view of the decision of the apex court decision in case of Collector, Land Acquisition vs MST Katiji, wherein the Hon'ble Supreme Court has held that the expression 'Sufficient Cause' employed by the legislature is adequately elastic to enable the Courts to apply the law in a meaningful manner to sub-serves the ends of justice that being the life-purpose of the existence of the institution of Courts. It was further held by the Hon'ble Supreme Court that such liberal approach is adopted is one of the principles that refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned,....
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....rther erred in law in not considering the fact that income of the deductee is totally exempt and no TDS is deductible. 3. The CIT(A) erred in law in holding that the appellant assessee can be said to have entertained a bona-fide belief that It was not liable to deduct tax at source from the impugned payments. 4. On the facts and circumstances of the case the CIT(A) ought to have upheld the "order of the Assessing Officer passed u/s 271C. 5. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 6. Briefly the facts of the case are that the assessee is an office of State Government of Rajasthan, Forest Department for conservation of forest and increasing the forest area through use of re-foresting. A Spot verification of TDS was conducted at the office premises of the deductor u/s 133A(2A) of the Act in the office of the assessee on 29.09.2016. During the course of verification and on perusal of information provided it was found that the payments are being made for civil construction work relating to environmental development, forestation, forest development, buffer area development etc. through EDCs (ECO De....
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....ntioned in Form 35. 2. Please state whether the above information had been filed before the ITO(TDS). Copy of agreement with EDCs regarding execution of the work and term of payment. 3. Procedures followed to identify and award of the work to the EDCs. 4. Terms and conditions of the payment to EDCS 5. Please explain how were the accounts and bills relating to Development expenditure maintained. As no reply was filed, despite several opportunities, it was proposed that in the absence of these details, the appeal will be decided on the basis of material available on record. No reply has been filed in response to this notice as well; hence the appeal is being decided accordingly. 5.6 The appellant's claim is that as per Rajasthan Government notification, EDCs can not be treated as contractors for the purposes of section 194C of IT. Act. As has been clarified by the ITO, TDS in his order, notification if any is by the Government of Rajasthan and no such exemption is available to the EDCs under Income Tax Act. The appellant has not furnished copy of such notification despite repeated opportunities 5.7 Whether or not EDCs....
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....issioner of Income Tax was right in passing the order, particularly as the appeal filed was belated and the delay had not been condoned by the Commissioner of Income Tax(A). 5.5. So far as the ment of the penalty order is concerned, the appellant was required to deduct tax at source on the payment made EDCs. The appellant was asked to furnish written submission in support of the grounds raised. Except for quoting the provision of Section 275, no reply has been given on merit. The appellant was asked to furnish a copy of State Government order which has been mentioned in the order of Income Tax Officer, TDS. However, no such detail has been furnished by the appellant despite several opportunities. Therefore, it is inferred that the appellant has nothing to state on merit. The grounds raised are rejected. The penalty order u/s 271C is hereby confirmed. 6. In effect, the appeal is Dismissed." 8. Feeling not satisfied the assessee is in appeal for the levy of TDS demand and for the penalty on the grounds as stated here in above. To support the various grounds so raised by the assessee the ld. AR of the assessee submitted that the purpose constitution of these EDCs ....
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....al evidence being the PAN number of the payee then in that case let this details be verified by the ld. AO and based on the these details final liability of TDS and related penalty thereof be decided. 10. We have heard both the parties, perused materials available on record. In this case the bench noted that all the EDCs since the assessee has not given the details of PAN number the ld. AO has raised the demand @ 20 % and if the ld. AO consider the PAN number of these case the assessee will get the substantial relief on the levy of TDS defaults as well as on the levy of penalty on the TDS defaults. The bench also noted that the assessee is part of the state government and the defaults if any is on account of the peculiar circumstances of the case and on the facts these EDCs are working under the direct supervision of the assessee on no profit no loss basis. In light of these facts we deem it fit in the interest of justice to admit the details of the payee with the PAN numbers. As this details were not before the lower authority we admit it in the interest of equity and justice and restore the matter to the file of the AO to examine the case afresh but by providing adequate oppor....