Veritas NL Intermediate Holdings BV, Pune V. Assistant Commissioner of Income tax,

ITA 144/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2190 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 19-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Rectification of order; TDS
• Section: 154; 11; 200A; 201; 246A; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 144 /P U N/201 7 / ASSESSMENT YEAR : 20 1 6 - 17 VERITAS NL INTERMEDIATE HOLDINGS BV, C/O VERITAS SOFTWARE TECHNOLOGIES INDIA PVT. LTD., ICON, SURVEY NO. 3/8, BANER ROAD, PUNE 411045 PAN : PNEVI2431G . / APPELLANT VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL PROCESSING CELL TDS, GAZIABAD . / RESPONDENT / APPELLANT BY : SHRI DARPAN KIRPALANI / RESPONDENT BY : SHRI SUDHENDU DAS / DATE OF HEARING : 16.08. 201 9 / DATE OF PRONOUNCEMENT : 20 . 0 8 .201 9 / ORDER PER SUSHMA CHOWLA, J M : THE APPEAL FILED BY ASSESSEE IS AGAINST ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 13, PUNE , DATED 24 .10.2016 RELATING TO ASSESSMENT YEAR 20 1 6 - 17. ITA NO. 144/PUN/ 2017 2 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND S OF APPEAL: - BASED ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, VERITAS NL INTERMEDIATE HOLDINGS BV ['THE APPELLANT'] RESPECTFULLY SUBMITS THAT THE COMMI SSIONER OF INCOME TAX (APPEALS) - 13, PUNE ['CIT(A)'] ERRED IN DISPOSING THE APPEAL OF THE APPELLANT, ON THE FOLLOWING GROUNDS WHICH ARE WITHOUT PREJUDICE TO EACH OTHER: 1. GROUND I: DISMISSISAL OF THE APPEAL ON GROUND THAT THE INITIMATION UNDER SECTION 200 A OF THE INCOME TAX ACT, 1961 (THE 'ACT') IS NOT APPEALABLE UNDER SECTION 246A OF THE ACT: 1.1 THE CIT(A) HAS ERRED IN DISMISSING THE APPEAL FILED AGAINST THE INTIMATION UNDER SECTION 200A( 1) HOLDING THAT THE SAME IS NOT MAINTAINABLE UNDER SECTION 246A U NLESS THE LEARNED AO ADJUDICATES ON THE ISSUE BY PASSING RECTIFICATION ORDER UNDER SECTION 154 OF THE ACT. 1.2 IN VIEW OF THE ABOVE GROUND, THE APPELLANT PRAYS THAT THE AFORESAID APPEAL FILED BEFORE THE CIT(A) IS MAINTAINABLE AND THE CIT(A) SHOULD BE DIR ECTED TO ADJUDICATE ON THE MERITS OF THE CASE. 2. GROUND 11: EXCESS LEVY OF INTEREST ON DELAY IN PAYMENT OF TAX DEDUCTED AT SOURCE ('TDS') OF RS.85,56,474 2.1 THE CIT(A) HAS ERRED IN NOT DIRECTING THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL PROCES SING CELL - TDS (THE 'LEARNED AO') TO RESTRICT THE INTEREST LEVIED ON DELAY IN DEPOSIT OF TDS UNDER SECTION 201 (1A)(II) OF THE ACT TO THE PERIOD OF DEFAULT OF ONE DAY (I.E. ONE MONTH) COMMENCING FORM THE DUE - DATE OF PAYMENT OF TDS (8 FEBRUARY 2016) TO THE DATE ON WHICH SUCH TDS WAS PAID (9 FEBRUARY 2016). 2.2 WITHOUT PREJUDICE TO THE ABOVE , EVEN IF THE DELAY IN DEPOSIT OF TDS WAS TO BE CONSIDERED FROM THE DATE OF DEDUCTION (29 FEBRUARY 2016), THE CIT(A) HAS ERRED IN NOT DIRECTING THE LEARNED AO TO RESTRI CT THE INTEREST LEVIED UNDER THE SAID SECTION FOR 11 DAYS (I.E. ONE MONTH) INSTEAD OF SUCH INTEREST LEVIED BY THE LEARNED AO FOR TWO MONTHS. 2.3 IN VIEW OF THE ABOVE GROUND, THE APPELLANT PRAYS THAT THE LEARNED AO BE DIRECTED TO DELETE THE EXCESS LEVY OF INTEREST OF RS.85,56,474 UNDER SECTION 201 (1A)(II) OF THE ACT. 3. GROUND 11: EXCESS LEVY OF INTEREST ON DELAY IN DEDUCTION OF TDS OF RS.2,06,516 3.1 THE CIT(A) HAS ERRED IN NOT DIRECTING THE LEARNED AO TO RESTRICT THE LEVY OF INTEREST UNDER SECTION 20 1 (1A)(I) OF THE ACT ON ACCOUNT OF DELAY IN DEDUCTION OF TDS FOR A PERIOD OF 12 DAYS (I.E. ONE MONTH) COMMENCING FROM THE DATE ON WHICH TAX WAS SUPPOSED TO BE DEDUCTED (29 FEBRUARY 2016) TO THE DATE OF ACTUAL DEDUCTION OF TAX (10 FEBRUARY 2016). ITA NO. 144/PUN/ 2017 3 3.2 IN VIEW OF THE ABOVE GROUND OF APPEAL, THE APPELLANT PRAYS THAT THE LEARNED AO BE DIRECTED TO DELETE THE EXCESS INTEREST OF RS.2,06,516 UNDER SECTION 201 (1A)(I). THE APPELLANT CRAVES LEAVE TO ADD, ALTER, VARY, OMIT, SUBSTITUTE OR AMEND THE ABOVE GROUNDS OF APPEAL, AT ANY TIME BEFORE OR AT, THE TIME OF HEARING OF THE APPEAL, SO AS TO ENABLE THE HON'BLE TRIBUNAL TO DECIDE THIS APPEAL ACCORDING TO LAW. 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST THE CHARGING OF INTEREST U/S. 201(1A) OF THE ACT. 4. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT CONSEQUENT TO THE INTIMATION ISSUED U/S. 200A OF THE ACT, THE ASSESSEE HAD FILED AN APPLICATION FOR RECTIFICATION U/S. 154 OF THE ACT VIS - - VIS THE INTEREST TO BE CHARGED U/S. 201(1A) OF THE ACT. THE LD. AR FOR THE ASSESSEE STATED THAT THE COMMISSIONER OF INCOME TAX (APPEALS) WHILE DECIDING THE APPEAL , AGAINST WHICH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE, HAD DISMISSED THE PLEA OF THE ASSESSEE IN LIMINE ON THE GROUND THAT NO APPEAL IS MAINTAINABLE AGAINST THE INTIMATION ISSUED U/S. 200A OF THE ACT. HOWEVER, HE FURTHER POINTED OUT THAT THE ASSESSING OFFICER HA D MEANWHILE PASSED THE ORDER U/S. 154 OF THE ACT DATED 09.11.2018 , CONSEQUENT TO WHICH THE ASSESSING OFFICER HAS HELD THAT THERE WAS A DEFAUL T COMMITTED IN CHARGING THE INTEREST FOR TWO MONTHS INSTEAD OF DELAY OF PERIOD OF ONE MONTH. THE SAID DEMAND WAS THUS , RECTIFIED AS EQUIVALENT TO THE AMOUNT AS PAID BY THE ASSESSEE. THE LD. AR FOR THE ASSESSEE THUS POINTED OUT THAT THE RELIEF AS PRAYED F OR IN THE PRESENT CASE HAS BEEN ALLOWED TO THE ASSESSEE. THE LD. DR FOR THE REVENUE ALSO SUPPORTED THE CONTENTIONS OF ASSESSEE. IN SUCH SCENARIO , WHERE THE RELIEF CLAIMED BY THE ASSESSEE HAS ALREADY BEEN ALLOWED TO ITA NO. 144/PUN/ 2017 4 THE ASSESSEE BY WAY OF RECTIFICATION U/S . 154 OF THE ACT , T HE PRESENT APPEAL FILED BY THE ASSESSEE BECOMES INFRUCTUOUS AND THE SAME IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THIS 20 TH DAY OF AUGUST, 2019 . SD/ - SD/ - (ANIL CHATURVEDI) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 20 TH AUGUST, 201 9 . RK / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) - 13, PUNE ; 4. THE CIT (IT/TP), PUNE ; 5. 6. , , / DR B , ITAT, PUNE ; / GUARD FILE . / BY ORDER , // TRUE COPY // / PRIVATE SECRETARY , / ITAT, PUNE