Bhavnagar Energy Company Ltd., Gandhinagar V. ACIT, TDS Circle, Ahmedabad

ITA 1301/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9147 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 21-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Keywords: TDS
• Section: 13; 154

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO. 1301/AHD/2018 / ASSESSMENT YEAR: 2014-15 BHAVNAGAR ENERGY COMPANY LTD. 34D FLOOR, UYOG BHAVAN SECTOR 11, BLOCK NO.8 GANDHINAGAR 382 011. VS ACIT, TDS CIRCLE AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI L.P. JAIN, SR.DR / DATE OF HEARING : 10/01/2020 /DATE OF PRONOUNCEMENT : 13/01/2020 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE LD.CIT(A)- 8, AHMEDABAD DATED 16.3.2018 PASSED FOR THE ASSTT.YEAR 2014-15. 2. IN RESPONSE TO THE NOTICE OF HEARING, NONE HAS C OME PRESENT ON BEHALF OF THE ASSESSEE. THEREFORE, WE PROCEED TO D ECIDE THE APPEAL EX PARTE QUA THE ASSESSEE APPELLANT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA D FILED AN APPLICATION DATED 15.2.2915 UNDER SECTION 154 OF THE ACT AND CO NTENDED THAT THE COMPANY HAS DEDUCTED TDS AT THE RATE OF 0.5% FOR TH E FINANCIAL YEAR BASED ON THE CERTIFICATE OF LOWER RATE BEING PRODUC ED BY THE COMPANY. IN FACT THE TDS WAS REQUIRED TO BE DEDUCTED AT THE RATE OF 2%. WHEN THE AO WROTE A LETTER DATED 10.9.2015 FOR RECOVERY OF S HORT DEDUCTION OF TAX, THEN THE ASSESSEE FILED THIS RECTIFICATION APPLICAT ION. IN THE RECTIFICATION APPLICATION, THE ASSESSEE FURTHER PLEADED THAT THE PAYEE COMPANY HAS ALREADY ACCOUNTED FOR THE INCOME, AND HAS PAID TAX. THEREFORE, THERE IS NO SHORT FALL IN COLLECTION OF TAX AS SUCH. THE LD .AO ON THE OTHER HAND ITA NO.1301/AHD/2018 - 2 - FOUND THE SUBMISSIONS OF THE ASSESSEE CORRECT, HENC E, RECOVERY NOTICE SENT AT RS.21,88,764/- WAS SCALED DOWN TO RS.3,06,4 32/-. THIS AMOUNT WAS CALCULATED BY THE AO UNDER SECTION 201(1A) OF T HE ACT I.E. INTEREST FOR THE PERIOD FOR WHICH TAX REQUIRED TO BE PAID BY THE ASSESSEE WERE NOT PAID EITHER BY THE COMPANY OR BY THE PAYEE. HE REC TIFIED RECOVERY LETTER AND CALCULATED INTEREST AT RS.3,06,432/-. 4. AGAINST THIS ORDER, ASSESSEE WENT IN APPEAL BEFO RE THE LD.CIT(A). THE LD.CIT(A) HAS REJECTED THE APPEAL OF THE ASSESS EE. 5. WITH THE ASSISTANCE OF THE LD.DR, WE HAVE GONE T HROUGH THE RECORD. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT TH E PERIOD CALCULATED BY THE AO, THE TAXES REQUIRED TO BE DEDUCTED BY THE AS SESSEE AND PAID TO THE GOVERNMENT TREASURY WERE NOT PAID EITHER BY THE ASSESSEE OR BY THE PAYEE, AND THEREFORE, FOR THE DEFAULT PERIOD, THE I NTEREST IS LEVIABLE UPON THE ASSESSEE. THE AO HAS RIGHTLY LEVIED INTEREST, AND NO INTERFERENCE IS CALLED FOR THE IN THE ORDER OF THE LD.CIT(A) ON THI S ISSUE. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 13 TH JANUARY, 2020 SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED, 13/01/2020