Itta/26/2014 Of Commissioner Of Income Tax (Tds) v. M/S Ushodaya Enterprises Ltd

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH ATHYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.26 of 2014 Date: 06.02.2014 Between: Commissioner of Income Tax (TDS),Hyderabad. … Appellant And M/s. Ushodaya Enterprises Limited,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 26 of 2014 JUDGMENT:(Per the Hon’ble The Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against thejudgment and order of the learned Tribunal dated 21.08.2013 in relation tothe assessment year 2005-06 on the following suggested questions of law. “(A) Whether on the facts and in the circumstances of the case,the appellate Tribunal is justified in setting aside levy u/s. 201(1A)of the Income Tax Act merely on the premise that the assesseewas not considered as being in default u/s. 201(1) of theIncome Tax Act? (B) Whether on the facts and in the circumstances of the case,the appellate Tribunal is justified in proceeding on the premisethat Section 201(1A) cannot survive independent of Section 201(1)of the Income Tax Act?” It appears that the learned Tribunal on fact found that there is nofinding with regard to the failure of deduction of tax at source. If there isno failure, consequently there is no default. The provision relating topayment of interest is not attractable. We are of the view that when thepre-condition for application of penal provision is not satisfied on fact,the question of deciding the matter otherwise does not arise. Hence,nothing is there to be decided in this matter. Accordingly, the appeal is dismissed. No order as to costs. Date: 06.02.2014ES ___________________ K.J. SENGUPTA, CJ ___________________ SANJAY KUMAR, J