Medsave Healthcare Insurance TPA Ltd., New Delhi V. ACIT, CPC, TDS, Ghaziabad

ITA 149/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2628 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2016-2017
• Appeal Filed On: 05-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SANJAY J OSHI
• Keywords: Opportunity of being heard; TDS; Set aside

Judgement Text

ITA NOS. 144 TO 151/DEL/2018 MEDSAVE HEALTHCARE (TPA) LTD. PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) (THROUGH VIDEO CONFERENCING) BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NOS.: 144 TO 147/DEL/2018 ( ASSESSMENT YEARS: 2015-16) MEDSAVE HEALTHCARE (TPA) LTD. F-701A, LADO SARAI, NEW DELHI. VS. ACIT CPC, TDS, GHAZIABAD. APPELLANT RESPONDENT PAN NO: AABCS8148M & ITA NOS.: 148 TO 151/DEL/2018 ( ASSESSMENT YEARS: 2016-17) MEDSAVE HEALTHCARE INSURANCE TPA LTD. F-701A, LADO SARAI, NEW DELHI. VS. ACIT CPC, TDS, GHAZIABAD. APPELLANT RESPONDENT PAN NO: AABCS8148M ASSESSEE BY : SHRI SANJAY JOSHI, CA REVENUE BY : SHRI R.K. JAIN, SR. DR ITA NOS. 144 TO 151/DEL/2018 MEDSAVE HEALTHCARE (TPA) LTD. PAGE 2 OF 6 PER BENCH (A) THESE APPEALS BY ASSESSEE ARE FILED AGAINST THE OR DER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-28, NEW DELHI, [LD. CIT(A) , FOR SHORT], DATED 10.10.2017 FOR ASSESSMENT YEAR 2015-16 AND 2016-17. FOR THE SAKE OF CONVENIENCE THESE APPEALS ARE HEREBY DISPOSED OF BY THIS CONSOLIDATED ORDER. THE GROUNDS RAISED IN THESE APPEALS ARE BEING REPRODUCED HEREUNDER: GROUNDS OF ITA NO. 144/DEL/2018 AY 2015-16 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUNDS OF ITA NO. 145/DEL/2018 AY 2015-16 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. ITA NOS. 144 TO 151/DEL/2018 MEDSAVE HEALTHCARE (TPA) LTD. PAGE 3 OF 6 GROUNDS OF ITA NO. 146/DEL/2018 AY 2015-16 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUNDS OF ITA NO. 147/DEL/2018 AY 2015-16 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUNDS OF ITA NO. 148/DEL/2018 AY 2016-17 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. ITA NOS. 144 TO 151/DEL/2018 MEDSAVE HEALTHCARE (TPA) LTD. PAGE 4 OF 6 GROUNDS OF ITA NO. 149/DEL/2018 AY 2016-17 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUNDS OF ITA NO. 150/DEL/2018 AY 2016-17 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUNDS OF ITA NO. 151/DEL/2018 AY 2016-17 : 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACT ION OF THE AO IN LEVYING INTEREST ON LATE PAYMENT OF TDS AND HAS FAILED TO A PPLY HIS MIND TO FACTS AND CIRCUMSTANCES OF THE CASE AND HAS IN AN A RBITRARY AND ADHOC MANNER, SUO MOTO LEVIED INTEREST ON THE LATE PAYMEN T OF TDS AND HENCE THE IMPUGNED ORDER IS TO BE SET ASIDE. 2. THAT THE ORDER/INTIMATION HAS BEEN PROCESSED IN A MECHANICAL MANNER WITHOUT CONSIDERING THE HARDSHIP AND FINANCIAL INST ABILITY THAT THE ASSESSEE WILL GO THROUGH WHICH IS AGAINST NATURAL J USTICE AND THE ORDER/INTIMATION IS TO BE STRUCK DOWN. 3. THE ASSESSEE CRAVES LEAVE TO ADD, AMEND AND DELE TE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING. ITA NOS. 144 TO 151/DEL/2018 MEDSAVE HEALTHCARE (TPA) LTD. PAGE 5 OF 6 (B) AT THE TIME OF HEARING BEFORE US, THE LEARNED AUTH ORIZED REPRESENTATIVE (LD. AR, FOR SHORT) FOR THE ASSESSEE SUBMITTED THAT IN RESPE CT OF EACH OF THE PRESENT EIGHT APPEALS, THE ASSESSING OFFICER PASSED THE CORRESPONDING ORDE RS WITHOUT PROVIDING REASONABLE OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE. T HE LD. AR SUBMITTED THAT THE ISSUES IN DISPUTE IN ALL THE 8 APPEALS SHOULD BE RESTORED BAC K TO THE ASSESSING OFFICER FOR FRESH ORDER IN ACCORDANCE WITH LAW AFTER PROVIDING THE AS SESSEE A REASONABLE OPPORTUNITY OF BEING HEARD SO THAT THE ASSESSEE IS ABLE TO PRESENT ITS CASE BEFORE THE ASSESSING OFFICER. (C) THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE [LD . SR. DR, FOR SHORT] EXPRESSED NO OBJECTION TO THE SUBMISSIONS OF THE LD. AR OF TH E ASSESSEE AND AGREED TO THE REQUEST OF THE LD. AR OF THE ASSESSEE, FOR RESTORING THE IS SUES IN DISPUTE IN THE PRESENT APPEALS BACK TO THE ASSESSING OFFICER FOR FRESH ORDER IN AC CORDANCE WITH LAW, AFTER PROVIDING A REASONABLE OPPORTUNITY TO THE ASSESSEE. IN VIEW OF THE FOREGOING, AND AS BOTH SIDES ARE IN AGREEMENT TO THIS, WE SET ASIDE ALL THE ISSUES IN D ISPUTE IN THE PRESENT EIGHT APPEALS BEFORE US, BACK TO THE FILE OF THE ASSESSING OFFICE R, FOR DENOVO ORDERS IN ACCORDANCE WITH LAW AFTER PROVIDING A REASONABLE OPPORTUNITY TO THE ASSESSEE. (C.1) BY WAY OF ABUNDANT CAUTION, WE HEREBY CLARIFY THAT WE ARE NOT EXPRESSING ANY OPINION ON THE MERITS OF THE ISSUES IN DISPUTE IN THESE 8 APPEALS BEFORE US. ALL LEGAL AND FACTUAL ISSUES ARE LEFT OPEN TO BOTH SIDES (TO THE ASSESSEE AS WELL AS TO THE REVENUE) IN THE FRESH PROCEEDINGS BEFORE THE ASSESSING OFFICER IN PURSUANCE OF THIS ORDER. ITA NOS. 144 TO 151/DEL/2018 MEDSAVE HEALTHCARE (TPA) LTD. PAGE 6 OF 6 (D) IN THE RESULT, ALL EIGHT APPEALS ARE TREATED AS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER WAS ORALLY PRONOUNCED ON 26 TH OCTOBER, 2021 IN OPEN COURT, IN THE PRESENCE OF REPRESENTATIVES OF BOTH SIDES, AFTER CONCLUSION OF THE HEARING. NOW THIS ORDER IN WRITING IS SIGNED TODAY ON 27.10.2021. SD/- SD/- (KUL BHARAT) (ANADEE NAT H MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: 27/10/21 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI