Assessee, a builder, had taken registration amount from applicants for allotment of plots\/flats.\u00a0 He could not allot plots\/flats on time and, hence, had to pay compensation\/damages for non-compliance. Assessing Officer held that the assessee had paid interest as per copy of account obtained during survey proceedings under section 133A, however, nomenclature of said expenses had been changed to compensation on cancellation of plots\/flats after such survey proceedings. Assessee contended that he had deducted TDS under section 194A incorrectly treating amount of compensation as interest under inadvertent mistake which was later on corrected by tax consultant.CIT(A) confirmed the order of the Assessing Officer.\u00a0 On appeal the Tribunal held that\u00a0\u00a0 amount of payment\/compensation for delayed allotment of plot of land was not interest under section 2(28A) since there was neither any borrowings of money nor was there incurring of debt on part of assessee\u00a0 provisions of section 194A would not apply on said payment\/compensation. Followed\u00a0\u00a0 PCIT v. West Bengal Housing Infrastructure Development Corpn. Ltd (2018) 257 Taxman 610 \/ (2019)413 ITR 82 (Cal)(HC).\u00a0 Tribunal also held that merely because in earlier point of time under an advertent mistake, assessee was treating such payment as interest, he could not be compelled to commit same mistake continuously after advice of tax consultant and, thus, such inadvertent mistake of assessee did not entitle Assessing Officer to treat assessee-in-default for taking action against assessee on account of non-deduction of TDS under section 194A. (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194A : Deduction at source-Interest other than interest on securities-Compensation \/damage for delayed allotment of plot of land-Not interest not liable to deduct tax at source-Deduction of tax at source by mistake the assessee cannot be treated as assessee is default-Interest cannot be levied. [S. 2(28A), 133A, 201(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43924","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bqs","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43924"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43924\/revisions"}],"predecessor-version":[{"id":43925,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43924\/revisions\/43925"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}