Case Law Details
Dish TV India Ltd. Vs CIT (ITAT Delhi)
Conclusion: CIT (A), notwithstanding the fact that in Financial year 2010-11 he had held that the payments were not in the nature of services falling under section 194J, not only ignored his appellate order in Financial Year 2010-11 but also chose to brush aside the explanations and evidences supplied by assessee without examining the same in detail. tI was deemed fit to restore the issue of short deduction of tax at source and interest thereon in the fourth quarter of Financial Year 2011-12 to the file of CIT (A) with a direction to pass a speaking order.
Held: The issue arose for consideration was of short deduction of tax at source and interest thereon for quarter four. AO had computed short deduction of tax at source and interest thereon in respect of Conax Access Systems Pvt. Ltd. and Tata Teleservices in the 4th Quarter. Assessee contended that payments to this company were made under normal contractual obligations and that the services being provided by these two companies were general in nature and did not require any transfer of skill nor did make available any skill to assessee. Assessee had deducted tax at source in terms of section 194C of the Act @ 2% whereas AO had held that the payment would fall within the terms of section 194J attracting the rate of 10%. It was noted that CIT (A), notwithstanding the fact that in Financial year 2010-11 he had held that the payments were not in the nature of services falling under section 194J, not only ignored his appellate order in Financial Year 2010-11 but also chose to brush aside the explanations and evidences supplied by assessee without examining the same in detail. Department’s appeal against the order of the Ld. CIT (A) in Financial Year 2010-11 was pending before the Tribunal. In such circumstances, in the interest of substantial justice, it was deemed fit to restore the issue of short deduction of tax at source and interest thereon in the fourth quarter of Financial Year 2011-12 to the file of CIT (A) with a direction to pass a speaking order after duly considering the evidences and explanations being offered by assessee in this regard after giving proper opportunity to assessee to present its case.
FULL TEXT OF THE ITAT JUDGEMENT
Both these appeals are preferred by the assessee. ITA 227/Del/2017 is against the order dated 11.11.2016 passed by the Learned Commissioner of Income Tax (Appeals)-I, Noida {CIT(A)} for Assessment Year 2012-13 whereas ITA No.228/Del/2017 pertains to Assessment Year 2013-14. Both the appeals involve identical issues. Therefore, these appeals were heard together and they are being disposed of through this common order for the sake of convenience.
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