SARDAR VALLABH BHAI PATEL UNIVERSITY OF AGRICULTURE AND TECH Vs. COMMISSIONER COMMERCIAL TAX U P LUCKNOW

JUDGEMENT

(1.) The present revisions have been filed by the assessee against common order of the Tribunal dated 11.4.2008 passed in Second Appeals No.254/04, 255/04 and 256/04 for A.Y. 2001-02, 2002-03 and 2003-04 respectively, by which the revenue's appeals have been allowed and the order passed by the first appeal authority, deleting the penalties under Section 8-D(6) of the U.P. Trade Tax Act, 1948 (hereinafter referred to as the Act), has been reversed.

(2.) Undisputedly, facts of the case are that the assessee is a university established under the Uttar Pradesh Evam Prodyogik Vishwavidalaya Adhiniyam 2000 (U.P. Act No.19 of 2000). During the assessment years in question, the assessee awarded contracts, for construction of college and residence for staff etc., to three contractors. It made payments to them without making any deduction of tax at source. This became subject matter of penalty proceedings under Section 8-D (6) of the Act. According to the assessing officer, the assessee was obliged to make deduction of tax at source under Section 8-D (6) of the Act. Since entire payments were made without necessary deductions, the assessee was visited with penalty orders for the three assessment years.

(3.) The amount of penalties apart, the main issue raised by the assessee was that it was not liable to make deduction of tax at source and therefore, it did not infringe the law. That submission found favour with the first appeal authority which deleted the penalty. However, the tribunal has reversed the findings and restored the penalties.