PR. Commissioner of Income Tax (TDS)-I v. M/S Catholic Relief Services

Delhi High Court · 13 Oct 2015 · 2015:DHC:11739-DB
S. Muralidhar; Vibhu Bakhrru
ITA 291/2015
2015:DHC:11739-DB
tax appeal_dismissed

AI Summary

The Delhi High Court dismissed the Revenue's appeals, upholding the ITAT's order granting limited relief on interest charged under Section 201(1A) of the Income Tax Act where the assessee had already paid interest for delayed TDS deposits.

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3' HIGH COURT OF DELHI 7.
ITA 291/2015
PR.COMMISSIONER OF INCOME TAX(TDS)-I Appellant
Through:Mr.Kamal Sawhney,Senior Standing eounsel with Mr.Raghvendra Singh,Junior
Standing eounsel.
VERSUS
M/S CATHOLIC RELIEF SERVICES Respondent
Through: Mr.Ajay Vohra,Senior Advocate with Ms.Kavita Jha and Mr.Vaibhav Kulkami, Advocates.
WITH
ITA 306/2015
PR.COMMISSIONER OF INCOME counsel with Mr.Raghvendra Singh,Junior
Standing eounsel.
VERSUS
Through: Mr.Ajay Vohra,Senior Advocate with And
9.
ITA 316/2015
ITAs291,306,& 316/2015 Page1 of3 2015:DHC:11739-DB
PR.COMMISSIONER OFINCOME counsel with Mr.Raghvendra Singh,Junior
Standing counsel.
VERSUS
Through:Mr.Ajay Vohra,Senior Advocate with
CORAM:
DR.JUSTICE S.MURALIDHAR MR.JUSTICE VIBHU BAKHRU
13.10.2015
ORDER

1. These appeals by the Revenue under Section 260A ofthe Income Tax Act, 1961 ('Act') are directed against the impugned common order dated

26 September2014passed bytheIncome Tax Appellate Tribunal('ITAT') in ITA Nos.4017,4018,4019/Del/2012for the Assessment Years('AYs') 2006-07,2007-08 and 2008-09.

2. This Court by its order dated 4^^ August 2015 directed notice to issue limited to the question ofinterest.

3. Ms.Kavita Jha,learned counselforthe Respondent,drew the attention of the Court to the decision dated 9th May 2012 of the Commissioner of Income Tax Appeals['CIT(A)']where in para[6] it is noted:"In respect of charging ofinterest under Section 201(1 A), it is found that the Appellant itselfhaspaid interestunderSection201(1A)againstthe delayed deposits of ITAs291,306,&316/2015 2of[3] the TDS."The CIT(A)proceeded to grant limited reliefin respect ofthe interest charged under Section 201(1A) against the shortfall of tax determined on account of estimation of perquisite and enhancement of income ofthe expatriateemployeesthus disallowingtheclaim ofrelief.This deletion worked out to Rs.4,93,637 in the aggregate for the three AYs in question.

4. Consideringthatthe Assessee had already paid interestunder Section201 (lA)ofthe Actto the extent ofdelayed payment ofTDS,and thatthe CIT (A)had granted only alimited reliefasregardsthe interestamountpayable bytheAssessee,theimpugned orderoftheITATupholdingtheaboveorder oftheCIT(A)doesnotgiveriseto anysubstantialquestion oflaw.

5. These appeals are accordingly dismissed.

S.MURALIDHAR,J OCTOBER13,2015 VIBHUBAKHRU,J Rk ITAs291,306,&316/2015 „,, Page3of[3]