Case Law Details
Reebok India Company Vs J.C.I.T (ITAT Delhi)
ITAT Delhi held that the limitation period is four years for passing assessment order in case of TDS statement not filed. Limitation period substituted to six years effective only from 01/10/2014.
Facts- The assessee is engaged in the business of distribution of foot wear and apparels and sell its merchandise in India directly to independent retailers, often under distribution or franchise agreement. Based on the survey proceedings conducted u/s. 133A of the Income-tax Act, 1961 on the Ambience Group who are the owners and operators of malls where assessee’s stores are situated.
AO noted that the mall owners have collected/recovered expenses in the form of Common Area Maintenance charges on which the deductors/tenants have deducted tax at source @ 2% considering the same to be covered under the provisions of Section 194C of the Act.
AO was of the firm belief that these payments are directly relatable to and being a part of rental activity, tax should have been deducted as per the provisions of section 194I of the Act @ 10% as against 2% being made by the deductor/tenant. Based on this view, order u/s 201(1)/1A of the Act was framed and accordingly, the assessee was directed to pay TDS amount and interest.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
