Bank of India (Zonal Office), Chandigarh V. ACIT (TDS), Chandigarh

ITA 1024/CHANDI/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5376 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 09-01-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 09-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 201(1); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1024 /CHD/2012 (ASSESSMENT YEAR : 2008-09) BANK OF INDIA (ZONAL OFFICE), VS. THE A.C.I.T.(T DS), SCO 181-82, SECTOR 17, CHANDIGARH. CHANDIGARH. PAN: AAACB0472C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI JASPAL SHARMA RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 09.01.2014 DATE OF PRONOUNCEMENT : 17.01.2014 O R D E R PER SUSHMA CHOWLA, J.M. : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), CHANDIGARH DA TED 29.06.2012 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST THE DEM AND CREATED UNDER SECTION 201(1) AND INTEREST CHARGED UNDER SECTION 2 01(1A) OF THE INCOME TAX ACT, 1961( IN SHORT THE ACT). 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE RE AD AS UNDER: 1. THE IMPUGNED ORDER IS BOTH AGAINST FACTS AND ER RONEOUS IN LAW. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH, H AS ERRED IN HAVING CONFIRMED THE ORDER OF THE ASSESSIN G OFFICER PASSED U/S 201(1)/201(1A) OF THE INCOME TAX ACT. 2 3. THE PRESENT APPEAL IS FILED AFTER A DELAY OF FOU R DAYS AND IN VIEW OF THE SUBMISSION OF THE LEARNED A.R. FOR THE ASSES SEE WE CONDONE THE DELAY OF FOUR DAYS AND PROCEED TO DECIDE THE APPEAL . 4. THOUGH THE ASSESSEE HAS RAISED GROUND NO.1 AGAIN ST THE EX-PARTE ORDER PASSED BY THE CIT (APPEALS) BUT NO ARGUMENTS WERE ADVANCED BY THE ASSESSEE IN THIS REGARD AND THE SAME IS DISMISS ED AS NOT PRESSED. 5. THE ISSUE IN GROUND NO.3 IS AGAINST THE DEMAND C REATED UNDER SECTION 201(1) OF THE ACT AND INTEREST CHARGED UNDE R SECTION 201(1A) OF THE ACT. THE LEARNED A.R. FOR THE ASSESSEE POINTED OUT THAT THE SAID AMOUNT WAS PAID BY THE ASSESSEE DEDUCTOR AFTER A PE RIOD OF 24 MONTHS FROM THE DATE OF DEDUCTION. IT WAS FURTHER POINT ED OUT BY THE LEARNED A.R. FOR THE ASSESSEE THAT IN THE PRESENT CASE THE HON'BLE HIGH COURT OF MADHYA PRADESH HAD PASSED AN ORDER AGAINST THE ASSE SSEE THAT WHERE THE TAX DEDUCTED BY THE ASSESSEE WAS NOT DEPOSITED WITH THE INCOME TAX DEPARTMENT, THE SAME SHALL NOT BE DEPOSITED WITHOUT LEAVE OF THE HON'BLE COURT. THE SAID ORDER WAS PASSED ON 28.3.2008 AND WAS VACATED ON 30.11.2009. OUR ATTENTION WAS DRAWN TO THE COPY OF THE SAID ORDER PLACED AT PAGE 4 OF THE PAPER BOOK AND THE FINAL OR DER IS PLACED AT PAGES 5 TO 23 OF THE PAPER BOOK. IT WAS FURTHER POINTED OUT BY THE LEARNED A.R. FOR THE ASSESSEE THAT THE AMOUNTS THEREAFTER W ERE DEPOSITED ON 6.3.2010. RELIANCE WAS PLACED ON THE RATIO LAID DO WN ON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF REGIONAL D IRECTOR, ONGC LTD & ANOTHER VS. ASSOCIATION OF SCIENTIFIC & TECHNICAL OFFICERS, ONGC LTD. & OTHERS [354 ITR 156 (SC)] FOR THE PROPOSITIO N THAT WHERE THE DEMAND HAD BEEN STAYED BY THE COURT, NO INTEREST IS CHARGEABLE UNDER SECTION 201(1A) OF THE ACT. HOWEVER, WHEN CONFRONT ED WITH THE DEFAULT OF PAYMENT BETWEEN THE DATE OF ORDER I.E. 30.11.200 9 TO THE DATE OF PAYMENT OF THE TAX DEDUCTED AT SOURCE ON 6.3.2010, THE LEARNED A.R. FOR 3 THE ASSESSEE FAIRLY ADMITTED THAT THE ASSESSEE HAD DEFAULTED IN THE PAYMENT OF TAXES AND THERE IS DELAY OF THREE MONTH. 6. THE LEARNED D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF THE CIT (APPEALS) AND POINTED OUT THAT NO RELIEF IS ALLOWABLE TO THE ASSESSEE IN VIEW OF THE OBSERVATIONS OF THE CIT (AP PEALS) IN PARA 4 AT PAGE 2 OF THE APPELLATE ORDER. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE RAISED VIDE GROUND NO.3 IS AGAINST THE CHARGI NG OF INTEREST UNDER SECTION 201(1A) OF THE ACT FOR LATE PAYMENT OF TAX AT SOURCE. THE ASSESSEE ADMITTEDLY HAD DEDUCTED THE TAX AT SOURCE ON 31.3.2008 BUT THE SAME WAS PAID TO THE ACCOUNT OF THE TREASURY ON 6.3 .2010 I.E. AFTER A PERIOD OF DEFAULT OF 24 MONTHS. THE HON'BLE MADHYA PRADESH HIGH COURT IN WP NO.3973 OF 2008 VIDE ORDER DATED 28.3.2008 HA D DIRECTED THE ASSESSEE NOT TO DEPOSIT TAX DEDUCTED AT SOURCE WITH OUT LEAVE OF THE HON'BLE COURT. CONSEQUENTLY, THE STAY ON DEPOSIT O F TAX DEDUCTED AT SOURCE WAS GRANTED BY THE HON'BLE COURT AGAINST THE ASSESSEE. THE SAID STAY WAS VACATED ON 30.11.2009 I.E. WHEN THE SAID W RIT PETITION WAS FINALLY DECIDED BY THE HON'BLE HIGH COURT OF MADHYA PRADESH. THE ASSESSEE THEREAFTER WAS AT LIBERTY TO DEPOSIT THE T AX DEDUCTED AT SOURCE, WHICH ULTIMATELY WAS DEPOSITED ON 6.3.2010. BOTH T HE AUTHORITIES BELOW HAVE HELD THE ASSESSEE TO BE IN DEFAULT IN NOT DEPO SITING THE TAX DEDUCTED AT SOURCE IN TIME AND CONSEQUENTLY, CHARGED INTERES T UNDER SECTION 201(1A) OF THE ACT. 8. THE ISSUE ARISING BEFORE US IS AGAINST THE CHARG ING OF INTEREST UNDER SECTION 201(1A) OF THE ACT. ADMITTEDLY, THE ASSESS EE HAD DEDUCTED TAX AT SOURCE ON 31.3.2008 AND THE SAME WAS NOT DEPOSIT ED WITHIN THE PRESCRIBED TIME BECAUSE OF THE STAY GRANTED BY THE HON'BLE HIGH COURT OF 4 MADHYA PRADESH VIDE ORDER DATED 28.3.2008. IN THE SAID CIRCUMSTANCES, THE ASSESSEE COULD NOT BE HELD TO HAVE DEFAULTED IN PAYMENT OF THE TAX TO THE ACCOUNT OF THE TREASURY I.E. FROM THE DATE OF T HE ORDER OF THE STAY TILL THE DATE OF VACATION OF THE SAID STAY BY THE HON'BL E HIGH COURT, WHICH IN THE PRESENT CASE IS 30.11.2009. THE ASSESSEE THERE AFTER HAD DEPOSITED THE TAX ON 6.3.2010. THE ASSESSEE HAS THUS DEFAULT ED FOR A PERIOD OF THREE MONTHS IN DEPOSIT OF TAX AT SOURCE AND INTERE ST IS CHARGEABLE FOR THE SAID PERIOD OF THREE MONTHS UNDER SECTION 201(1 A) OF THE ACT. ACCORDINGLY, WE DIRECT THE ASSESSIN G OFFICER TO CHARGE INTEREST UNDER SECTION 201(1A) OF THE ACT FOR A PER IOD OF THREE MONTHS. THE GROUND OF APPEAL NO.3 RAISED BY THE ASSESSEE IS PARTLY ALLOWED. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF JANUARY, 2014. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 17 TH JANUARY, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH