COMMISSIONER OF INCOME TAX Vs. DELHI PUBLIC SCHOOL

JUDGEMENT

(1.) Appeals of the Revenue are admitted on the following substantial question of law:

(2.) Some of the Appeals are filed by the Income Tax Department and some other Appeals by the Assessee which are in the nature of counter objections. Since the issue involved in the Appeals of the Revenue is common, these Appeals taken up first for decision.

(3.) An on-the-spot interactive education programme was conducted on 10th March, 2005 wherein it was revealed that the Assessee School was providing free educational facilities to the wards of teachers/staff members. The Assessing Officer(AO), based on his understanding of Rule 3(5) of the Income Tax Rules, 1962, held that the Assessee had committed a default by lower deduction of TDS from the total salary and was thus liable to be treated in default under Section 201(1) and liable for interest under Section 201(1A) of the Income Tax Act, 1961.