ACIT, Circle-59,TDS,-Kolkata, Kolkata V. United Bank of India, Kolkata

ITA 1145/KOL/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5643 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2014
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 08-08-2012
• Court: TRIBUNAL
• Assessee Lawyers: SOUMITRA CHOW DHURY
• Section: 154; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C , KOLKATA [BEFORE HONBLE SRI SHAMIM YAHYA, AM & HONBLE SR I GEORGE MATHAN, JM] ITA NO.1145/KOL/2012 ASSESSMENT YEAR : 2009-10 ( APPELLANT ) (RESPONDENT) A.C.I.T., CIRCLE-59, -VS- UNITED BANK OF INDIA KOLKATA KOLKATA (PAN:AAACU 5624 P) FOR THE APPELLANT SHRI A.K.SINGH, CIT(DR) FOR THE RESPONDENT SHRI SOUMITRA CHOWDHURY, ADVOCATE DATE OF HEARING : 25.03.2014 DATE OF PRONOUNCEMENT : 25. 03.2014. ORDER PER SHRI GEORGE MATHAN, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. C.I.T.(A)- I, KOLKATA IN APPEAL NO.839/CIT(A)-I/C-59/11-12 DATED 09.05.2012 FOR ASSESSMENT YEAR 2008-09. 2. SHRI A.K.SINGH, CIT(DR) REPRESENTED ON BEHALF O F THE REVENUE AND SHRI SOUMITRA CHOWDHURY, ADVOCATE REPRESENTED ON BEHAL F OF THE ASSESSEE. 3. IT WAS SUBMITTED BY THE LD. DR IN THE REVENUES APPEAL THAT THE ONLY ISSUE WAS AGAINST THE ACTION OF THE LD. CIT(A) IN HOLDING THA T THE DAMODAR VALLEY CORPORATION HAD INCLUDED THE INTEREST RECEIVED FROM THE ASSESSE E UNITED BANK OF INDIA IN ITS TOTAL INCOME AND HAD PAID TAX ON IT THOUGH NO EVIDENCE TO THAT EFFECT WAS SUBMITTED BEFORE THE AO. IT WAS THE SUBMISSION THAT THE ISSUE WAS AG AINST THE LEVY U/S 201(1)/201(1A) OF THE ACT. IT WAS THE SUBMISSION THAT AS NO EVIDEN CE TO SHOW THAT THE DEDUCTEE BEING DAMODAR VALLEY CORPORATION HAD OFFERED THE INTEREST INCOME RECEIVED FROM THE ASSESSEE WAS OFFERED TO TAX AND WAS PRODUCED BEFORE THE AO THE LEVY HAD BEEN MADE ITA.NO.1145/KOL/2012 UNI TED BANK OF INDIA A.YR.2009-10 2 U/S 201(1)/201(1A) OF THE ACT ON ACCOUNT OF THE SHO RT DEDUCTION OF TDS. HE VEHEMENTLY SUPPORTED THE ORDER OF AO. 4. IN REPLY THE LD. AR SUBMITTED THAT ALL EVIDENCES TO SHOW THAT DAMODAR VALLEY CORPORATION HAD OFFERED THE INTEREST RECEIVED FROM THE ASSESSEE IN ITS COMPUTATION OF TOTAL INCOME WAS PRODUCED BEFORE THE AO. THE LD. AR DREW OUR ATTENTION TO PAGE 5 OF THE PAPER BOOK WHICH WAS A COPY OF PETITION FOR REC TIFICATION U/S 154 OF THE ACT DATED 21.05.2011 WHEREIN THE EVIDENCES IN THE FORM OF COM PUTATION OF TOTAL INCOME AS ALSO COPY OF INCOME TAX RETURN OF DAMODAR VALLEY CORPORA TION HAD BEEN PRODUCED. HE FURTHER DREW OUR ATTENTION TO PAGE 6 OF THE PAPER B OOK WHICH IS A COPY OF THE RETURN OF DAMODAR VALLEY CORPORATION, FURTHER TO PAGE 7 OF TH E PAPER BOOK WHICH IS A COPY OF THE LETTER FROM DAMODAR VALLEY CORPORATION CONFIRMI NG THAT THE INTEREST HAS BEEN OFFERED TO TAX IN THE COMPUTATION OF INCOME OF DAMO DAR VALLEY CORPORATION, TO PAGE 8 WHICH WAS A COPY OF THE COMPUTATION OF TOTAL INCOME IN RESPECT OF DVC. THE LD. AR DREW OUR ATTENTION TO CBDT CLARIFICATION IN F.NO.27 6/201/96-IT(B) DATED 29.01.1997 WHEREIN THE CBDT HAS CLARIFIED THAT NO DEMAND VISUA LIZED U/S 201(1A) OF THE ACT SHOULD BE ENFORCED AFTER THE TAX DEDUCTOR HAS SATIS FIED THE OFFICER IN CHARGE OF TDS THAT TAXES DUE HAS BEEN PAID BY THE DEDUCTEE ASSESS EE. IT WAS THE SUBMISSION THAT ORDER OF THE LD. CIT(A) WAS LIABLE TO BE UPHELD. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. A PERUSAL O F THE GROUND RAISED BY THE REVENUE SHOWS THAT THE ALLEGATION IS THAT THE ASSES SEE HAS NOT PRODUCED EVIDENCES TO SHOW THAT DAMODAR VALLEY CORPORATION HAS INCLUDED T HE INTEREST IN ITS TOTAL INCOME AND PAD TAX ON IT. A PERUSAL OF 154 APPLICATION AS ALSO THE EVIDENCES ATTACHED THERETO CLEARLY SHOWS OTHERWISE. HOWEVER, AS BOTH THE SIDES HAVE AGREED THAT THE ISSUE CAN BE SENT BACK TO THE FILE OF AO FOR RE-VERIFICATION OF THE SAID EVIDENCES THE ISSUE IN THIS APPEAL IS RESTORED BACK TO THE FILE OF AO FOR RE-AD JUDICATION. THE AO SHALL VERIFY AS TO WHETHER DAMODAR VALLEY CORPORATION HAS OFFERED THE INTEREST INCOME RECEIVED FROM THE ASSESSEE IN ITS COMPUTATION OF TOTAL INCOME. IF IT IS FOUND TO BE OFFERED NO LEVY U/S 201(1)/201(1A) OF THE ACT IS TO BE MADE ON THE ASSE SSEE IN RESPECT OF THAT COUNT. ITA.NO.1145/KOL/2012 UNI TED BANK OF INDIA A.YR.2009-10 3 6. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.03.2014. SD/- SD/- [SHAMIM YAHYA] [ GEORGE MATHAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 25.03.2014. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO: 1. UNITED BANK OF INDIA, NEW MANIKTALA BRANCH, KOLKATA , P-41, C.I.T. ROAD, SCHEME-VIIM, KOLKATA-700054. 2 A.C.I.T., CIRCLE-59, TDS, KOLKATA 3 . CIT(A)-I, KOLKATA 4. CIT - KOLKATA. 5. CIT-DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES