DEPUTY COMMISSIONER OF INCOME TAX Vs. DELHI TRANSCO LTD.
LAWS(IT)-2014-5-36
INCOME TAX APPELLATE TRIBUNAL
Decided on May 09,2014

DEPUTY COMMISSIONER OF INCOME TAX Appellant
VERSUS
DELHI TRANSCO LTD. Respondents

JUDGEMENT

- (1.) THE present five appeals are directed at the instance of revenue against the separate orders of Ld. Commissioner of Income Tax (appeals) dated 28.3.2013. ITA No. 3527 is an appeal arose from penalty proceeding initiated u/s 271(1)(c) of the Income TaxAct. The grievance of revenue is that Ld. Commissioner ofIncome Tax (appeals) has erred in deleting the penalty imposedby the assessing officer u/s 271 (1) (C) of the Income Tax Act.
(2.) IN other four appeals grievance of revenue is that assessee was required to deduct TDS u/s 194(J) on wheeling charges paid by it for transmission of electricity. It has deducted the tax short and therefore assessing officer has rightly taken action u/s 201/201A.
(3.) THE brief facts of the case are that a survey u/s 133(A) was carried out in the business premises of the assessee at Shakti Sadan, Rouse Avenue Kotla Road, New Delhi, on 22/1/2009. During the course of survey, it was noticed that the assessee has deducted TDS @ 2% u/s 194(C) on payments of wheeling charges paid to M/s Power Grid Corporation of India Ltd. (hereinafter referred to as PGCIL for the sake of brevity).The assessee had also made payment to M/s Bhakara Beas Management for transmission of electricity. The assessing officer was of the view that assessee was required to deduct the tax at sources @ 5% of the payment u/s 194(J) as PGCIL was providing technical services to the assessee by transmitting the electricity. Therefore, an order was passed u/s 201(1) and 201(1) (A) of the Act raising demand against the assessee in all these years. On appeal Ld. Commissioner of Income Tax (appeals) has deleted the demand by observing that assessee was not required to deduct taxes at source u/s 194(J) as held by ITAT in Assessment Year 2005 - 06 in the case of assessee Ld. Commissioner of Income Tax (appeals) further observed the deductee has already paid the taxes and claimed refund thus the deductee has already discharged its entire tax liability well in advance and even paid more taxes then, what was required to be paid therefore no interest liability can be put upon the assessee company.;


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