INCOME TAX ACT, 1961

Section 201(1A)

Tax deduction at source - Order under section 201(1A) - Validity - Passing of order by ITO not having jurisdiction over assessee's TDS matters

Assessee challenged legality of order under section 201(1) and section 201(1A) passed on 1-6-1999 by Asstt.CIT, Central Circle-1, Lucknow. Assesse case was that AO did not have power to pass order under section 201(1) and section 201(1A) because jurisdiction in respect of the TDS matters of same assessee had already been transferred to ITO TDS Ward-2 Lucknow. Held: Notifications issued by Commissioner, Lucknow, dated 26-3-1990 which was effective from that date clearly stated that Income Tax Officer, Ward--2 (TDS), Lucknow would be an AO as mentioned under various section of TDS including section 195 and 197. The Notification, dated 14-3-1991 also gave jurisdiction to Income Tax Officer TDS, Lucknow over all persons responsible for any action mentioned under various sections of TDS. Further looking at orders passed under section 127 by Commissioner Lucknow, it was apparent that jurisdiction over TDS had not been transferred to specified officers other than Income Tax Officer (TDS), Lucknow. Further in case of assessee's sister concerns also Income Tax Officer TDS Ward--2, Lucknow and not the officer of central circle, had passed respective orders under section 201 (1A). Therefore, it was apparent that jurisdiction of all TDS matters over assessee was with Income Tax Officer (TDS) Ward--2, Lucknow and not with Assistant Commissioner, Central Circle--1, Lucknow and therefore, order passed by Asstt. CIT, Central Circled-1, Lucknow under sections 201(1) and 201(1) and 201(1A) was without jurisdiction.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 1996-97

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