Case Law Details
ACIT Vs The Indian News Paper Society (ITAT Delhi)
Conclusion: Indian Newspaper Society was not required to deduct tax at source (TDS) under section 194I in respect of lease premium paid on following the orders dated 27.01.2014 and 20.06.2013 of Co-ordinate Benches of ITAT, Delhi in assessee’s own case; and after due consideration of CBDT Circular dated 13-10-2016 which took into account the orders of High Court in assessee’s own case.
Held: Assessee-society was a section 25 company formed with the object of functioning as an apex organization to protect the interest of the press in India. AO held that assessee company had failed to deduct tax at source under section 194I in respect of lease premium paid to Mumbai Metropolitan Regional Development Authority (MMRDA). AO treated assessee to be in default under sections 201(1) or 201(1A) in respect of tax not deducted at source and raised demand amounting to Rs. 1,74,02,772. However, the same was quashed by the CIT(A). On appeal. It was well settled that circulars of CBDT which were beneficial to assessee were binding on Revenue authorities. Whether in proceedings U/s 201(1)/201(1A) before AO; or in the course of appellate proceedings either before CIT(A) or in ITAT, Revenue had failed to bring any distinguishing facts and circumstances of this year to light as compared with facts and circumstances in F.Y. 2007-08 (Assessment Year 2008-09), F.Y. 2009-10 (Assessment Year 2010-11) and F.Y. 2010-11 (Assessment Year 2011-12). Respectfully following the orders dated 27.01.2014 and 20.06.2013 of Co-ordinate Benches of ITAT, Delhi in assessee’s own case; and after due consideration of CBDT Circular dated 13-10-2016 which took into account the orders of High Court in assessee’s own case; the issue in dispute regarding applicability of Section 194I was decided in assessee’s favour and it was held that the assessee was not required to deduct tax at source U/s 194I in respect of payment of lease premium.
FULL TEXT OF THE ORDER OF ITAT DELHI
(A) The aforementioned appeal by Revenue and Cross Objection (“C.O.”, for short) by Assessee are hereby disposed off through this Consolidated Order. Grounds taken in the Appeal and Cross Objection are as under:
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