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This is an appeal by the Assessee against the order dated 10.02.2014 of CIT(A)-XXIV, Kolkata relating to A.Y.2008-09.

2. The appellant herein is district Inspector of Schools, Purulia. The salaries of teaching and non teaching staff of the Government of West Bengal schools and Government affiliated schools under the Government of West Bengal are paid through banks and banks are paid service charges for the services rendered by them. The funds are given for the purpose of paying salaries by the Govt. Of West Bengal and placed at the disposal of District Inspector of schools who disburse the salary through the bank. Since service charges are paid to the banks the revenue was of the view that the District Inspector of schools was bound to deduct tax at source on the service charges paid to the banks u/s 194H of the Income Tax Act, 1961 (Act). According to the revenue the service charges were in the nature of commission and therefore the appellant herein was bound to deduct tax at source while making payment to the banks. Order u/s 201(1) and 201(1A) of the Act holding the assessee in default for non deduction of tax at source and interest on tax on non deduction was passed by the AO by order dated 30.03.2011.

6. In the result the appeal of the assessee is allowed.

Order pronounced in the Court on 05.04.2017. 

              Sd/-                                             Sd/-

        [M.Balaganesh]                                      [ N.V.Vasudevan ]
        Accountant Member                                   Judicial Member

Dated    : 05.04.2017.

[RG PS]



Copy of the order forwarded to:

1.Smt. Radha Rani Mukherjee, Office of the District Inspector of Schools (SE)Purulia, P.O.Dulmi Nadiha, District-Purulia, Pin: 723102 (WB).