EXECUTIVE ENGINEER Vs. RECOVERY OFFICER

JUDGEMENT

(1.) This order shall govern disposal of ITA No.2 of 2012 and ITA No.3 of 2012. For the sake of convenience, facts are taken from ITA No.2 of 2012.

(2.) This appeal under section 260 A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 30.03.2011 passed by Income Tax Appellate Tribunal, Indore (for short, the Tribunal). By the said order the Tribunal disposed of two appeal being ITA Nos.167 and ITA 168 OF 2009 in respect of Assessment YEARS 2005 06 AND 2006 07.

(3.) The facts very briefly stated are that the appellant / assessee had awarded a contract for collecting toll from 'Kshipra Toll Plaza' situated at Dewas to M/s Kalika Enterprises, Shivpuri and M/s Laxman Electronics, Gwalior (hereinafter referred as Contractors) for the year 2004 05and 2005 06 respectively. The appellant / assessee did not deduct the tax collected at source (for short, TCS) while collecting the amount of licence fees from the said Contractors. In the circumstances a show cause notice was issued by the Assessing Officer to the appellant raising the demand equal to the amount which the assessee ought to have collected at the time of receiving contract amount as provided under section 206C(1C) inserted by the Finance Act, 2004 w.e.f. 1.10.2004 together with interest thereon. The Assessing Officer after considering the provisions of 206C(1C) and 206(6) of the Act held that it was obligatory on the part of the appellant to have collected the tax at the time of receiving actual contract amount from the Contractors. He, therefore, raised the demand vide order dated 1.12.2006 equal to the amount not collected and interest thereon.