Ratnakar Bank Ltd., Kolhapur V. Jt.CIT,(Cen.)Circle,Kolhapur,

ITA 135/PUN/2007

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7454 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-01-2011
• Assessment Year: 1996-1997
• Appeal Filed On: 25-01-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H C LEUVA
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI I C SUDHIR, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 135/PN/07 (ASSTT. YEARS: 1996-97) THE RATNAKAR BANK LTD., .. APPELLANT SHREE SHAHU MARKET YARD, KOLHAPUR VS. JT. COMMISSIONER OF INCOME-TAX, .. RESPONDENT CEN. CIR. KOLHAPUR APPELLANT BY: SHRI NIKHIL PAT HAK RESPONDENT BY: SHRI H.C. LEUVA ORDER PER G.S. PANNU, AM THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), KOLHAPUR DATE D 10.10.2006 WHICH, IN TURN, ARISES FROM AN ORDER DATED 4.5.2006 PASSED BY THE ASSESSING OFFICER UNDER SECTION 154 OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) PERTAINING TO THE ASSESSMENT YEAR 1996-97. 2. THE DISPUTE RAISED IN THIS APPEAL IS THAT THE CO MMISSIONER OF INCOME-TAX (APPEALS) WAS NOT JUSTIFIED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN NOT ALLOWING CREDIT OF RS 7,31,163/- ON THE GROUND THAT THE TDS CERTIFICATES WERE DEFECTIVE. 2. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS A SCHEDULED BANK REGULARLY ASSESSED TO INCOME-TAX. IN THE ASSESSMENT ORDER, TH E ASSESSING OFFICER STATED THAT AS REGARDS TDS CERTIFICATES AMOUNTING TO RS 53 ,501/-, THEY WERE DUPLICATES ISSUED IN FORM NO 16A. THE ASSESSING OFFICER FURTHE R NOTICED THAT IN COLUMN NO 3 THE NAME OF THE PERSON ON WHOSE ACCOUNT TAX DEDUC TED WAS SHOWN AS STATE BANK OF INDIA, KOLHAPUR AND RATNAKAR BANK LTD., KOL HAPUR. ACCORDING TO THE ITA NO 135/PN/07 THE RATNAKAR BANK LTD., K OLHAPUR 2 ASSESSING OFFICER, THE INFORMATION GIVEN IN THE COL UMNS PERTAINING TO THE AMOUNT PAID/CREDITED AND AMOUNT OF INCOME-TAX DEDUCTED SHOWED INCORRECT FIGURES. IT WAS ALSO FOUND THAT ALTHOUGH THE DATE OF PAYMENT/CR EDIT WAS IN THE YEAR 1995, THE TDS CERTIFICATES WERE ISSUED IN 2002. THE ASSE SSEE WAS NOT ABLE TO EXPLAIN THE REASON FOR THIS LONG GAP. IN VIEW OF THIS, THE ASSESSING OFFICER DID NOT GIVE CREDIT FOR THE TDS PAYMENT OF RS 7,31,163/-. IN AP PEAL BEFORE THE COMMISSIONER OF INCOME-TAX (APPEALS), THE ASSESSEE SUBMITTED THA T THE DEFECT POINTED OUT WAS TECHNICAL IN NATURE AND SINCE THE AMOUNTS HAD BEEN DEDUCTED AND DULY CREDITED TO THE GOVERNMENT ACCOUNT, THERE WAS NO LOSS TO REV ENUE. THE ABOVE SUBMISSIONS OF THE ASSESSEE DID NOT FIND FAVOUR WIT H THE COMMISSIONER OF INCOME-TAX (APPEALS), WHO JUSTIFIED THE ORDER OF TH E ASSESSING OFFICER BY HOLDING AS UNDER: THE ARGUMENT OF THE APPELLANT IS NOT CONVINCING. I T IS CLEAR FROM THE TDS CERTIFICATES THAT THEY CONTAIN THE DEFECTS POINTED OUT BY THE AO IN THE IMPUGNED ORDER. THE APPELLANT DOES NOT APPEAR TO HA VE MADE ANY EFFORT TO GET THE DEFECTS CORRECTED BY THE DEDUCTOR WHO HA S ISSUED THE CERTIFICATES. SUCH TDS CERTIFICATES MADE IN A NEGLI GENT MANNER CANNOT BE GIVEN CREDIT EVEN IF THE DEDUCTOR IS A PART OF THE GOVERNMENT. IT IS THE RESPONSIBILITY OF THE TAX DEDUCTOR TO MENTION THE F ACTS CORRECTLY WHILE ISSUING THE CERTIFICATES AND IT IS ALSO THE RESPONS IBILITY OF THE DEDUCTEE TO OBTAIN THE CERTIFICATE IN TIME AND GET THE MISTAKES APPEARING IN THE SAME RECTIFIED BEFORE SUBMISSION TO THE DEPARTMENT. THE APPEAL IS, THEREFORE, REJECTED. BEING AGGRIEVED WITH THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE REFERRED TO THE PAPER BOOK CONTAINING THE WRITTEN SUBMISSIONS MADE BEFORE THE ASSESSING OFFICER EXPLAINING THAT THE ASSESSEE WAS ENTITLED TO CREDIT FOR THE TDS CERTIFICATES IN QUESTION. IT HAS BEEN POINTED OUT THAT THE LOWER A UTHORITIES HAVE SIMPLY BRUSHED ASIDE THE EXPLANATION FURNISHED BY THE ASSESSEE WIT HOUT APPRECIATING THE MATTER IN ITS PROPER PERSPECTIVE. ITA NO 135/PN/07 THE RATNAKAR BANK LTD., K OLHAPUR 3 4. ON THE OTHER HAND, THE LEARNED DR HAS DEFENDED T HE ORDERS OF THE LOWER AUTHORITIES BY POINTING OUT THAT THE TDS CERTIFICAT ES BEING DEFECTIVE, CREDIT HAS RIGHTLY BEEN DISALLOWED BY THE LOWER AUTHORITIES. 5. HAVING HEARD RIVAL SUBMISSIONS, WE FIND THAT THE GRIEVANCE OF THE ASSESSEE IS FOUND TO BE CORRECT. WE HAVE PERUSED T HE COPY OF LETTER DATED 24-10-2002 ADDRESSED TO THE ASSTT. CIT CLAIMING REF UND OF TDS CERTIFICATES RECEIVED FROM POWER FINANCE CORPORATION LTD., ENDOR SED IN ASSESSEES FAVOUR BY RELIANCE INDUSTRIES TO THE EXTENT OF RS. 2,10,162/- . SIMILARLY, THE TDS CERTIFICATE ISSUED BY NATIONAL THERMAL POWER CORPORATION (BANK OF AMERICA) HAS ALSO BEEN SUBMITTED ALONG WITH ENCLOSURES ENDORSED BY BANK OF AMERICA AMOUNTING TO RS. 4,67,500/-. IN THIS CONNECTION, IT HAS BEEN EX PLAINED THAT THE CLAIM OF THE ASSESSEE IS IN LINE WITH CIRCULAR NO. 2-P(XXXIV-4) DATED 16-5-1966 ISSUED BY CBDT AND THE LOWER AUTHORITIES HAVE NOT APPRECIATED THE SAME IN ITS PROPER PERSPECTIVE. IN OUR CONSIDERED OPINION, HAVING PER USED THE MATERIAL ON RECORD, WE DEEM IT FIT AND PROPER TO RESTORE THE MATTER BAC K TO THE FILE OF THE ASSESSING OFFICER WHO SHALL EXAMINE THE CLAIM OF THE ASSESSEE ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND IN ACCORDANCE WITH LAW. IN CASE, THE ASSESSING OFFICER IS NOT SATISFIED WITH THE CLAIM, HE SHALL PASS A SPEAK ING ORDER. NEEDLESS TO MENTION HERE THAT THE A.O SHALL AFFORD ADEQUATE OPP ORTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF MARCH, 2011. SD/- SD/- (I.C. SUDHIR) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER PUNE: DATED: 30 TH MARCH, 2011 ANKAM ITA NO 135/PN/07 THE RATNAKAR BANK LTD., K OLHAPUR 4 COPY OF THE ORDER IS FORWARDED TO : 1. RATNAKAR BANK LTD., KOLHAPUR 2. JT. CIT CEN. CIR. KOLHAPUR 3. THE CIT(A) KOLHAPUR 4. THE CIT, KOLHAPUR 5. THE D.R, B BENCH, PUNE TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, PUNE BENCHES, PUNE