| |
| The Tax Publishers2020 TaxPub(DT) 2715 (Ind-Trib) : (2020) 183 ITD 0485 : (2020) 207 TTJ 0743 : (2020) 084 ITR (Trib) 0075 INCOME TAX ACT, 1961
Section 201(1)/(1A)
In view of CBDT Circular No. 4 of 2002, dated 16-7-2013 and Circular No. 18/2017 on 29-5-2017, assessee should not have been treated as assessee in default for non-deducting tax on rent paid to Krishi Upaj Mandi Samiti since income of payee was exempt under section 10(26AAB).
|
Tax deduction at source - Assessee-indefault - Rent paid to payee whose income was exempt under section 10(26AAB) -
Assessee was a State Government undertaking was engaged in the work of storage and maintenance of warehouse for food grains procured by Food Corporation of India and other local agencies. AO treated assessee as one in default. for non-deduction of TDS on rent paid to Krishi Upaj Mandi Samiti, Dhamnod & Khandwa and for Short deduction of TDS on rent paid to M/s Sadhna Enterprises, for non-deduction of tax from rent paid to Krishi Upaj Mandi Samiti, Dhamnod Khandwa. Held: Payee, i.e., Krishi Upaj Mandi Samiti was State Government undertaking and its income was exempt under section 10(26AAB).. CBDT, vide its Circular No.04 of 2002 on 16-7-2003 states “Boards or Bodies whose income is unconditionally exempt under section 10 and who are statutorily not required to file return of income as per section 139, there would be no requirement for tax deduction at source since their income is anyway exempt under the Act. Thus, in view of the CBDT. Cicular and certificate of Chartered Accountant assessee should not have been treated as assessee in default for non-deduction of tax at source from rent payment to Krishi Upaj Mandi Samiti.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 201(1)/(1A)
 SUBSCRIBE FOR FULL CONTENT
|