Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

February 2014

Assessee in default: TDS: S/s. 192, 201(1) and 201(1A) : A. Y. 1992-93: Short deduction on account of bona fide belief: Assessee not in default: Not liable u/s. 201(1) and 201(1A):

By K. B. Bhujle, Advocate
Reading Time 1 mins
fiogf49gjkf0d
CIT vs. ITC Ltd.; 263 CTR 241 (All):

Assessee believed that conveyance allowance is exempt and accordingly computed TDS u/s. 192 excluding conveyance allowance. The Assessing Officer treated the assessee as assessee in default and raised demand u/s. 201(1) and also levied interest u/s. 201(1A). The Tribunal allowed the assessee’s appeal and cancelled the demand.

On appeal by the Revenue, the Allahabad High Court upheld the decision of the Tribunal and held as under:

“Assessee was under bona fide belief that the conveyance allowance was exempt u/s. 10(14) and tax was not deductible at source and therefore assessee could not be treated as assessee in default for charging interest u/s. 201(1A) of the Act.”

Download PDF

You May Also Like

Export – Deduction u/s. 80HHC – DEPB credit – Matter remanded to the Assessing Officer in accordance with the law laid down in Topman Exports.

Assessee in default: TDS: S/s. 194B and 201: A. Ys. 2001-02 and 2002-03: Non-deduction of TDS from lottery winnings in kind: Assessee not in default: Not liable u/s. 201: