2023 (8) TMI 828

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....espondents: Mr. Vinay Kuthiala, Senior Advocate, with Ms. Vandana Kuthiala and Mr. Diwan Singh Negi, Advocates, in all the appeals. M.S. RAMACHANDRA RAO, CHIEF JUSTICE (ORAL) In all these appeals, following substantial questions of law arise for consideration:- "(i) That collection of toll by lease or the person employed by him on behalf of the Govt. under HP Tolls Act, 1975 is only delegation of collection of tax levied under authority of State and the same does not fall within ambit of section 206C (IC) of the Income Tax Act, 1961. (ii) That delegation of function of collection of toll under section 3-A of HP Tolls Act, 1975 is clothed with statutory authority and is not a business as defined under section 2(13) of the Income Tax....

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....t of auction is received in installments. The installments are deposited directly in the Government Treasury by the lessee. 5) Thus, after the auction is conducted, the successful bidder is required to pay installments of part thereof of the lease money by the due date into Government Treasury of the district. 6) The Income Tax Department made inspection of the office of the said Department and noticed that there was no Tax Collection at Source (in short 'TCS') being made by the representatives of the said Department who were authorized to receive payment in installments in respect of toll money. 7) Accordingly, notices were issued under Section 156(3) of the Income Tax Act, 1961 against the Department of Excise & Taxation. 8) Orders we....

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....ersus Eli Lilly and Company (India) Private Ltd (2009) 15 SCC 1, Singapore Airlines Limited Versus Commissioner of Income Tax, Delhi (2003) 1 Supreme Court Cases 497 and Hindustan Coca Cola Beverage (P) Ltd. Versus Commissioner of Income Tax (2007) 8 Supreme Court Cases 463. 15) In all these cases it was held that the recipient of the income on which TDS has not been deducted, even though it was liable to such deduction under the Income Tax Act, had already included that amount in its income and paid taxes on the same, the assessee can no longer be proceeded against the recovery of the short fall in TDS. However, it was held that it would be open to the revenue to seek payment of interest under Section 201 (1-A) of the Act for the period ....