COMMISSIONER OF INCOME TAX TDS Vs. BRITISH AIRWAYS

JUDGEMENT

(1.) By this common judgment, two appeals bearing ITA Nos.1316 and 1324/2006 filed by the Revenue, arising out of the common order dated 15th July, 2005 passed by the Income Tax Appellate Tribunal (hereinafter referred as "Tribunal") in ITA Nos.2512-2513/Del/1998 for the assessment year 1994-95 and 1995-96, are being disposed of.

(2.) The facts in brief are that during the TDS proceedings, the Assessing Officer found that the Assessee had made arrangements with hotels for accommodation of its crew members and the Assessing Officer was of the opinion that the Assessee was required to deduct tax at source from the rent paid to the hotels. Accordingly, the Assessee was required to submit the reasons for not deducting tax at source under Section 194-I of the Income Tax Act, 1961( hereinafter referred to as Act).

(3.) Since no reply was filed by the Assessee, the Assessing Officer observed that the Assessee had no explanation to offer for not deducting tax at source and as such he held that the Assessee is in default for not deducting tax at the source, and levied penalties amounting to Rs.58,12,140/- for the financial year 1994-95 and Rs.96,97,823/- for the financial year 1995-96.