Commissioner of Income-tax v. Bhaskar Multinet P. Ltd
[Citation -2014-LL-0904-32]
Citation | 2014-LL-0904-32 |
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Appellant Name | Commissioner of Income-tax |
Respondent Name | Bhaskar Multinet P. Ltd. |
Court | HIGH COURT OF MADHYA PRADESH |
Relevant Act | Income-tax |
Date of Order | 04/09/2014 |
Assessment Year | 2006-07 |
Judgment | View Judgment |
Keyword Tags | material available on record • deduction of tax at source • transmission lines • return of income • question of law • payment of rent |
Bot Summary: | The assessee company which is engaged in the business of Cable TV operations in Bhopal, Indore and Jaipur filed its return of income for the assessment year 2006-07 and showed certain expenses by way of payment of poll rent made to the Madhya Pradesh State Electricity Board and the Rajasthan State Electricity Board. The assessing officer found that for the purpose of payment of poll rent, tax at source as contemplated under Section 40(a)(ia) has not been deducted, and, therefore made an addition of 21,16,387/-. 699 dated 30 th January, 1995, if the payment is made to the Government or local authority, then the deduction of tax at source is not required. Shri S. M. Lal, learned counsel for the appellant took us through the provisions of Section 197 of the Income Tax Act and argued that the necessary certificates under the aforesaid provision has not been produced and in the absence of the certificate, the indulgence made by the Commissioner and the Tribunal is not called for. Referring to the definition of rent as provided under Section 194-I and the amendment made to Section 40(a)(ia) by including the words 'Rent' and 'Royalty' w.e.f. 1.04.06, Shri S. M. Lal tried to argue that the Tribunal has committed an error in deleting the addition made by the Assessing Officer. We have considered the rival contentions and we find that the concurrent findings recorded by the appellate authority namely the Commissioner and the Income Tax Appellate Tribunal are based on the circular dated 30 th January, 1995 and the same seems to be in accordance with the requirement of law. Once, from the deduction at source in the matter of payment of rent is only from the year 2007-08 as is evident from the material available on record, we see no reason to interfere into the matter i.e. the assessment year 2006-07 would not arise in view of the statutory provision. |