2024 (11) TMI 144

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....on 201(1)/201(1A) of the Income Tax Act, 1961 (the Act) concerning A.Y. 2012-13 in the two appeals captioned above. ITA No.1899/Del/2022 - A.Y. 2012-13 2. The appeal of the assessee concerns challenge to proceedings under Section 201(1)/201(1A) whereby demand of Rs. 62,76,444/- has been raised on the assessee treating the assessee as assessee in default in the second round of proceedings. The AO, by order dated 29.03. 2019 passed under Section 201(1)/201(1A) of the Act, held the assessee as 'assessee in default' towards non-deduction of TDS on lease rent paid to NOIDA Authorities. 3. Assailing the action of the AO and CIT(A), the ld. counsel for the assessee submitted at the outset that the AO has passed two orders under Section 201(1)/2....

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....ment rendered by the Hon'ble Delhi High Court is dated 16th February, 2017. The ld. counsel thus submitted that in his humble opinion, the default committed towards non deduction under Section 194-I prior to the delivery of the judgment requires to be viewed benignly. The ld. counsel further pointed out that the assessee acted bona fide in the light of the specific letters issued by the NOIDA Authority in English as well as in Hindi on different occasions, copy of which is placed in the paper book. As per such letters, it was communicated that NOIDA Authority is not renting the properties to allotees and the lease rent charged by NOIDA Authority do not fall within the meaning of rent under Section 194-I of the Act. The ld. counsel submitted....

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....f TDS obligated under Section 194-I in relation to lease rent payment to NOIDA Authority by the assessee is under controversy. 8.1 It is the case of the assessee that the assessee cannot be held as 'assessee in default' so as to attract the provisions of Section 201(1)/201(1A) in the peculiar factual matrix. The assessee contends that (i) the assessee acted under bona fide belief that payment towards lease rental is not susceptible to provisions of Section 194-I in view of specific communications made by the NOIDA Authorities on the applicability of Section 194-I of the Act; (ii) the proceedings under Section 201(1) and 201(1A) has already been completed and this is only a second round of proceedings under the same provisions; (iii) the ap....