Case Law Details
KMP Expressways Ltd Vs ACIT (ITAT Delhi)
Introduction: In a recent judgement by the Income Tax Appellate Tribunal (ITAT) Delhi, the case of KMP Expressways Ltd vs ACIT was ordered to be re-adjudicated. The case was centred around KMP Expressways Ltd, the assessee, being treated as an ‘Assessee in default’ under section 201(1) of the Income Tax Act due to non-deposition of Tax Deducted at Source (TDS) in the company’s books of account.
Analysis: The ITAT ruled that the case warranted re-adjudication as there was a discrepancy between the TDS accounted for in the company’s records and the payments made. The tribunal found that while the company had deducted tax at source while making payments to SREI Infrastructure Finance Ltd, the same was not deposited to the account of the Central Government. The ITAT observed that there were differences in the figures pointed out by the Assessing Officer in his order and those mentioned in Form No.26A, filed by the assessee.
Furthermore, the ITAT dismissed the contention of CIT(A) regarding the second proviso to section 201(1) of the Act, which was introduced effective from 01.07.2012, stating that this proviso has been held to be retrospective by the Hon’ble Jurisdictional High Court.
Conclusion: The ITAT Delhi’s ruling in the case of KMP Expressways Ltd vs ACIT highlighted the importance of strict compliance with TDS deposition norms and accurate record-keeping by companies. The tribunal also demonstrated a pragmatic approach, taking into account retrospective laws in delivering their judgement. As such, this ruling could serve as a significant precedent for similar cases in the future.
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