TaxTMI 
TaxTMI 
2026 (9) TMI 611
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....Director RUIFDCO, by filing the present appeal, sought to set aside the impugned order dated 22.09.2025 passed by the Additional/Joint Commissioner of Income Tax (Appeal)-2, Coimbatore [hereinafter referred to as the 'JCIT(A)'] qua assessment year 2019-20, on the grounds inter-alia that:- "1. The Ld. A.O. and Ld. CIT(A) has erred in law as well as in facts in considering the appellant as assessee in default under section 201(1) and 201(1A), even when the appellant was not required to deduct tax under section 194A of the I.T. Act, 1961 being HUDCO notified vide Gazette Notification No. 26/2019 dated 20.03.2019. 2. The Ld. A.O. and Ld. CIT(A) has erred in law as well as in facts in not considering Form-26A for the A.Y. 2019-....
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....DCO on account of loan taken for providing funds to support Unban Local Bodies, but no tax was deducted at sources u/s 194A of the Act. Show cause notice was issued u/s 201(1)/201(1A) of the Act, which is extracted as under for ready perusal:- "Sir/Madam, Subject: Show cause notice u/s 201(1)/201(1A) of the I.T. Act, 1961 for F.Y. 2018-19-Regarding. Please refer to the subject cited above. 2. On the basis of information available with the Department, a Survey u/s 133A(2A) of the Income-tax Act, 1961 was carried out upon Housing and Urban Development Corporation (HUDCO), Jaipur by the Department TDS Wing, Jaipur on 10-04-2019. During the course of survey proceedings, it was found that tax was not deducted ....
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....count the interest payments received from the deductor assessee for computing its taxable income, and has paid the tax due on the income declared but not filed copy of its ITR for A.Y. 2018-19 for verification in this office which was mandatory for calculation of interest u/s 201(1A) of the Income-tax Act. Further, as per Income-tax Rule 31ACB(1) the certificate from an accountant under the first provisio to sub-section(1) of section 201 shall be furnished in form 26A to the Director General of Income-tax (Systems) or the person authorized by the Director General of Income-tax (System) in accordance with the procedures, formats and standards specified under sub-rule (2), and verified in accordance with the procedures, formats and standards ....
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....l of Income Tax (System). AO proceeded to hold that the assessee authority has made interest payment of Rs. 10,25,88,043/- to HUDCO on which it was required to deduct tax at source to the tune of Rs. 1,02,58,804/- i.e. 10% of the interest amount, but the assessee authority has failed to deduct tax at source and as such treated assessee in default as per first proviso to section 201(1) of the Act. Consequently, interest liability of assessee authority is created u/s 201(1)/201(1A) of the Act for A.Y. 2019-20. 4. Assessee carried the matter before the Ld. CIT(A) by way of filing appeal, who has dismissed them on merits and also for non appearance of assessee authority. Feeling aggrieved with the impugned order passed by the Ld. CIT(A), ass....
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....eral Notification No. S.O. 3489 (No. 170) dated 22.10.1970 [F. No. 12/164/68-ITCC/ITJ], notifying, inter alia, "any company in which all the shares are held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that bank" as exempt from the rigour of section 194A. So by applying this notification HUDCO being 100% Government company was exempt from rigour of section 194A. 9. So far as question having notification no. 26/2019 dated 20.03.2019 applied by the AO is concerned, no doubt HUDCO was specifically notified, but the assessee authority being under bonafide belief has not deducted tax at source. No doubt as per Notification No. 26/2019 (supra) assessee being a public company is not....