Delhi High Court - Orders
Commissioner Of Income Tax (Tds)-2 vs M/S Tv Today Network Ltd on 23 January, 2024
Author: Yashwant Varma
Bench: Yashwant Varma, Purushaindra Kumar Kaurav
$~65
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 56/2024 & CM APPL 4269/2024
COMMISSIONER OF INCOME TAX (TDS)-2
..... Appellant
Through: Mr. Vipul Agrawal, Sr.
Standing Counsel with Mr.
Gibran and Ms. Sakshi, Advs.
versus
M/S TV TODAY NETWORK LTD. ..... Respondent
Through: Mr. Salil Aggarwal, Sr. Adv.
with Mr. Madhur Aggarwal,
Adv.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR
KAURAV
ORDER
% 23.01.2024 CM APPL 4269/2024 Bearing in mind the disclosures made, the delay of 25 days in re-filing the appeal is condoned.
The application shall stand disposed of.
ITA 56/20241. Notice. Since the respondent is duly represented, let a reply, if so chosen and advised, be filed on this appeal within a period of three weeks from today.
2. Having heard learned counsels for parties, we note that the issue emanates from a suo moto disallowance of expenditure in the relevant year. The Income Tax Appellate Tribunal ["ITAT"] has in paragraph 10 of the impugned order taken note of the fact that the expenditure This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/01/2024 at 21:12:58 was duly accounted for in the subsequent year and tax was deducted at source at that stage.
3. Mr. Aggarwal, learned counsel appearing in support of the appeal, however, would draw our attention to the deeming fiction contained in Section 194C, 194H and 194I of the Income Tax Act, 1961 ["Act"] to submit that the moment a sum is credited to any account, such crediting is in terms of the provisions made, deemed to have been credited in the account of the payee and the obligation to deduct tax arising consequent thereto. Matter requires consideration.
4. We accordingly admit this appeal on the following question of law:-
A. Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in deleting the penalty levied under Section 271C wherein disallowance of provision of liability of expenditure does not absolve the tax deductor of his statutory duty to deduct TDS under the Act?
5. Let the matter be called again on 01.03.2024.
YASHWANT VARMA, J.
PURUSHAINDRA KUMAR KAURAV, J.
JANUARY 23, 2024 neha This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/01/2024 at 21:12:58