M/s. Oriental Bank of Commerce, JAIPUR V. DEPUTY COMMISSIONER OF INCOME TAX (TDS), Jaipur

ITA 1472/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7949 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-03-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 21-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROSHANTA MEENA JCIT LD DR DHK
• Assessee Lawyers: RAJIB SOGANI CA LD
• Keywords: TDS
• Section: 201(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S SMC, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM VK;DJ VIHY LA-@ ITA NO.1472/JP/18 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2010-11 VK;DJ VIHY LA-@ ITA NO.1473/JP/18 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2011-12 VK;DJ VIHY LA-@ ITA NO.1478/JP/18 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2012-13 VK;DJ VIHY LA-@ ITA NO.1479/JP/18 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2013-14 VK;DJ VIHY LA-@ ITA NO.1484/JP/18 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2014-15 VK;DJ VIHY LA-@ ITA NO.1488/JP/18 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2016-17 M/S. ORIENTAL BANK OF COMMERCE, 69-334,VT TOAD,, MADHYAM MARG, MANSAROVAR, JAIPUR CUKE VS. DCIT (TDS), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/TAN NO. AAACO 0191M/JPRO 0113B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAJIB SOGANI, CA, LD.AR JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROSHANTA MEENA, JCIT, LD.DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 16/04/2019 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 23/04/2019 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST TH E SEPARATE ORDERS OF THE LD. CIT(A),3 JAIPUR DATED 24/10/2018, 23-10- 2018,22-10-2018 FOR THE A.YS. 2010-11, 11-12, 12-13, 13-14, 14-15 & 16-17 RESPECTIVELY ITA NOS.1472,1473,1478,1479,1484 & 1488/JP/18 A.YS 2010-11, 11-12, 12-13, 13-14 & 14-15 M/S. ORIENTAL BANK OF COMMERCE, JAIPUR 2 IN THE MATTER OF ORDER PASSED U/S. 201(1) & 201(1A) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. WE FOUND THAT THERE WAS DELAY IN FILING APPEALS BEFORE LD. C IT(A) AND THAT THE LD. CIT(A) HAD DISMISSED THESE APPEALS AS FILED BY THE ASSESSEE BY NOT CONDONING THE DELAY. WE FOUND THAT IN ASSESSEES OW N CASE (IN ITA NOS.1471,1475,1476,1480,1483,1485 TO 1487 & 1489/JP /2018 FOR THE A.YS 2010-11 TO 2016-17), THE TRIBUNAL HAS CONSIDER ED THE SIMILAR SITUATION VIDE ITS ORDER DATED 26-03-2019, WHICH RE ADS AS UNDER:- THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINS T THE DIFFERENT ORDERS OF THE LD.CIT(A)-3, JAIPUR DATED 23/10/2018, 24/10/2018 AND 22/10/2018 RESPECTIVELY FOR THE A.Y. 2010-11 TO 201 6-17 IN THE MATTER ORDER PASSED U/S 201(1) AND 201(1A) OF THE I NCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS AND CIRCUMSTANCES IN ALL THE CASES ARE SAME WHEREIN THE LD. CIT(A) DID NOT CONDONE THE DELAY IN FILING THE APPEAL BEFORE T HE LD. CIT(A) AND DISMISSED THE APPEALS ON THE GROUND OF DELAY IN FIL ING WITHOUT GOING INTO THE MERITS OF THE CASE. 3. FROM THE RECORD, I FOUND THAT THE ASSESSEE IS A GOVERNMENT BANK ENGAGED IN BANKING ACTIVITIES. THE ASSESSEE USED TO TAKE DEPOSITS FROM THE CUSTOMERS AND GIVE LOANS AND OTHER BANKING SERVICES TO ITS CUSTOMERS. THE ASSESSING OFFICER FOUND THAT THE ASS ESSEE HAS NOT DEDUCTED TDS ON INTEREST PAYMENT EXCEEDING BASIC LI MIT. IT WAS CONTENDED BEFORE THE ASSESSING OFFICER THAT THE CUS TOMERS TO WHOM THE INTEREST WAS PAID HAVE DULY FILLED FORM 15G/15H , THEREFORE THE BANK DID NOT DEDUCT TAX. HOWEVER, THE ASSESSING OFF ICER FOUND THAT THE AGGREGATE INTEREST IN THE FINANCIAL YEAR EXCEED ED THE BASIC EXEMPTION LIMIT AS PER INCOME TAX ACT FOR FILING RE TURN U/S 139(1) OF THE ACT AND STILL NO TDS WAS DEDUCTED. THE ASSESSIN G OFFICER TREATED THE ASSESSEE IS IN DEFAULT U/S 201(1) AND 201(1A) O F THE ACT. AGAINST THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE FI LED APPEAL BEFORE THE LD. CIT(A), WHICH WAS DELAYED. ITA NOS.1472,1473,1478,1479,1484 & 1488/JP/18 A.YS 2010-11, 11-12, 12-13, 13-14 & 14-15 M/S. ORIENTAL BANK OF COMMERCE, JAIPUR 3 4. IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT THE BANKING COMPANY HAVING BRANCHES VISE SEPARATE TDS NO. AND THEREFORE , THE DEMAND NOTICE WAS RECEIVED AT BRANCH ADDRESS. BRANCH STAFF AND BRANCH MANAGER ARE GENERALLY NOT AWARE ABOUT INTRICACIES A ND PROCEDURAL ASPECTS OF INCOME TAX ASSESSMENT. EVEN, THEY HAVE N O IDEA REGARDING FILING OF APPEAL WITHIN A 30 DAYS OF RECE IVING OF ORDER, THEREFORE, DID NOT NOTE THE DATE OF RECEIVING OF OR DER. MOREOVER, THE CONCERNED OFFICER AT THE BRANCH WAS TRANSFERRED SHO RTLY AFTER WHICH LED TO OBLIVION TOWARDS THE MATTER. FURTHERMORE, TH E NOTICE WAS RECEIVED ON 11.10.2017 FOR DEPOSIT OF DEMAND OR OTH ERWISE ATTACHMENT OF BANK ACCOUNTS AND THEN THE MATTER WAS BROUGHT UNDER CONSIDERATION OF SENIOR OFFICER AT H.O. LEVEL . SENIOR OFFICER AT THE H.O. LEVEL REQUESTED TO THE CONCERNED INCOME TA X OFFICER FOR ASSESSMENT ORDER AND CERTIFIED COPY OF THE SAME WAS RECEIVED TO BRANCH ON 12.01.2018. FINALLY, BRANCH WAS ADVISED T O FILING OF APPEALS BEFORE RESPECTIVE COMMISSIONER OF INCOME TA X (APPEALS). 5. IT WAS ALSO SUBMITTED THAT THE BANK DID NOT DERI VE ANY BENEFIT FROM DELAY IN FILING OF APPEALS; RATHER IT SUFFERED AS SERIOUS RISK OF HIGH HANDED DEMAND. IT IS SUBMITTED THAT THE JUDICI ARY IS RESPECTED ON ACCOUNT OF ITS POWER TO PROVIDE JUSTICE AND NOT FOR CONDONING INJUSTICE ON TECHNICAL GROUNDS. THE JUDICIARY IS CA PABLE, AND IS EXPECTED TO DO SO, OF REMOVING TECHNICAL DIFFICULTI ES IN THE INTEREST OF JUSTICE. 6. THE LD. CIT(A) DID NOT CONVINCE WITH THE REASONS FOR DELAY FILING OF APPEALS, ACCORDINGLY, HE DISMISSED THE APPEALS ON T HE GROUND OF DELAY WITHOUT GOING INTO THE MERITS OF THE CASE. 7. I HAVE HEARD THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE REASONS FOR DELAY IN FILING THE APPEALS BEFORE THE LD. CIT(A). I FOUND THAT THERE WAS SUFFICIENT REASON FOR DELAY IN FILIN G THE APPEALS BEFORE THE LD. CIT(A). THE HON'BLE SUPREME COURT IN THE CA SE OF COLLECTOR, LAND ACQUISITION VS MST. KATIJI (1987) 167 ITR 471 AND ALSO THE HONBLE MUMBAI HIGH COURT IN THE CASE OF SUNIL CHAN DRA VOHRA VS ACIT (2009) 32 SOT 365 (MUM) HAVE HELD THAT FOR SUB STANTIAL INTEREST OF JUSTICE, TECHNICAL DELAY SHOULD BE IGNO RED. APPLYING THE PROPOSITIONS OF LAW LAID DOWN IN THE ABOVE JUDICIAL PRONOUNCEMENTS TO THE FACTS OF THE INSTANT CASE, I FOUND THAT THER E WAS SUFFICIENT REASONS FOR DELAY IN FILING THE APPEALS BEFORE THE LD. CIT(A), THEREFORE, IN THE SUBSTANTIAL INTEREST OF JUSTICE, I CONDONE THE DELAY IN FILING THE APPEALS AND THE MATTER IS RESTORED BA CK TO THE FILE OF THE LD. CIT(A) FOR DECIDING THE MATTER AFRESH AS PER LA W IN TERMS OF PROVISIONS OF SECTION 250(6) OF THE ACT. 8. IN THE RESULT, ALL THE NINE APPEALS OF THE ASSES SEE ARE ALLOWED IN PART FOR STATISTICAL PURPOSES IN TERMS INDICATED HE REINABOVE. ITA NOS.1472,1473,1478,1479,1484 & 1488/JP/18 A.YS 2010-11, 11-12, 12-13, 13-14 & 14-15 M/S. ORIENTAL BANK OF COMMERCE, JAIPUR 4 3. AS THE FACTS AND CIRCUMSTANCES IN ALL THE APPEAL S ARE PARA MATERIA RESPECTFULLY FOLLOWING THE SAID TRIBUNAL ORDER DATE D 26-03-2019 IN ASSESSEES OWN CASE, SUPRA AS NARRATED ABOVE, WE CONDONE THE DELAY AND THE MATTER IS RESTORED BACK TO THE FILE OF THE CIT(A) FOR DECIDING THE MATTER AFRESH ON MERITS/MATERIAL AVAILABLE ON RECOR D. 4. IN THE RESULT, ALL THE APPEALS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 23 APRIL, 2019. SD/- JES'K LH 'KEKZ (RAMESH C SHARMA) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 23 APRIL, 2019 *PP/SPS VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT/ASSESSEE: M/S. ORIENTAL BANK OF COMME RCE, 69-334,VT TOAD,, MADHYAM MARG, MANSAROVAR, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT/DEPARTMENT THE DCIT (TDS), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NOS. 1472,1473,1478,1479,1484 & 1488/JP/18 VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR