CHIEF ACCOUNTS OFFICER Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) THESE are appeals by Chief Accounts Officer, Bruhat Bangalore Mahanagara Palike [hereinafter referred to as "BBMP" or "assessee"] against a common order dated 5.3.2014 of CIT(Appeals) -V, Bangalore ["CIT(A)"] confirming the orders dated 27.3.2013 passed by the ITO (TDS), Ward -16(1), Bangalore, ["AO"] treating BBMP as an "Assessee in Default" for not deducting at source u/s. 201(1) of the Income Tax Act, 1961 ["the Act"] and also levying interest on BBMP u/s. 201(1A) of the Act on the tax that ought to have been deducted and paid to the credit of the Central Government. The appeals relate to assessment years 2010 -11 & 2011 -12.

(2.) THE municipal governance of Bangalore vested with the Corporation of the City of Bangalore in 1949, under 'The City of Bangalore Municipal Corporation Act, 1949 (Mysore Act LXIX of 1949)' which stood repealed by Sec. 507 of the Karnataka Municipal Corporations Act, 1976 (KMC Act) and continues to be governed by KMC. The Corporation was renamed as Bangalore Mahanagara Palike (BMP). New areas in the vicinity of the city of Bangalore also came under the control of BMP and BMP came to be renamed as Bruhat Bangalore Mahanagara Palike.

(3.) DURING the previous year relevant to AYs 10 -11 & 11 -12, the owners of the extent of land situate in the various areas as set out in the Annexures I & II to this order surrendered their holdings free of cost.