Case Law Details
Conservator of Forest and Field Tiger Project Sariska Vs ITO (ITAT Jaipur)
ITAT Jaipur held that requirement of TDS deduction u/s. 194C of the Income Tax Act on payments made to Eco Development Committee remanded back to AO with a direction to relook on various aspects.
Facts- The assessee deductor is State Government i.e. Conservator of Forest & Field Director, Tiger Project, Sariska, Alwar in the spot verification u/s. 133A(2A) was conducted on 18.11.2015 and required details were called for. After verification of details filed, the original order u/s. 201(1)/201(1A) was passed on 06.06.2018 determining the total tax liability including interest of Rs. 44,43,240/-.
During the course of verification it was found that the payments are being made for civil construction work relating to environmental development, forestation, forest development, buffer area development etc. through Eco Development Committees (hereinafter referred as EDCs). The EDCs are the bodies registered with the forest department and are mainly constituted of local villagers and with one representative of Forest Department. The work completed through the EDCs includes construction and maintenance of roads, anicuts and enclosures etc. No TDS is being made on such payments made to various EDCs.
AO alleging non-deduction of TDS determined total tax liability including interest of Rs. 44,43,240/-. CIT(A) dismissed the appeal.
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