Lakshmi Vilas Bank Limited, Guntur V. The Income Tax Officer, Ward-1 (TDS), , Guntur

ITA 163/VIZ/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2526 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 10-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Charitable institution; Additional evidence; Non-deduction of tax; TDS
• Section: 133A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 163 /VIZ/201 9 AND 164/VIZ/2019 ( / ASSESSMENT YEAR : 20 14 - 15 AND 2015 - 16 ) M/S LAKSHMI VILAS BANK LTD. 23 - 1 - 97, MAIN ROAD, PATNAM BAZAR GUNTUR [PAN : HYDTO2140F ] VS. INCOME TAX OFFICER WARD - 1(TDS) GUNTUR ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI , AR / RESPONDENT BY : SMT.SUMAN MALIK, DR / DATE OF HEARING : 12 . 0 6 . 201 9 / DATE OF PRONOUNCEMENT : 21 .06 . 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)] - 2, GUNTUR VIDE ITA NO.10030/GNT/CIT(A) - 2/2016 - 17 AND ITA NO.10029/GNT/CIT(A) - 2/2016 - 17DATED 09.01.2019 FOR THE A.Y.2014 - 15 AND 2015 - 16 RESPECTIV ELY. 2 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR SINCE THE FACTS OF BOTH THE APPEALS ARE COMMON, THEY ARE CLUBBED, HEARD TOGETHER AND DISPOSED OFF IN A COMMON ORDER FOR THE SAKE OF CONVENIENCE AS UNDER. 2. THE FACTS OF THE CASE IN BRIEF ARE AS UNDER. THE DEDUCTOR (ASSESSEE) IS A COMMERCIAL BANK AND A SURVEY U/S 133A WAS CONDUCTED IN THE OFFICE PREMISES OF THE DEDUCTOR, M/S LAKSHMI VILAS BANK LTD. , ON 13.08.2015 AND DURING THE COURSE OF SURVEY, THE ASSESSING OFFICER (AO) [ITO (TDS)] FOUND THAT THE DEDUCTOR HAS NOT DEDUCTED THE TDS IN SOME OF THE PAYM ENTS MADE IN WHICH THE TDS IS APPLICABLE AND IN SOME CASES, THE DEDUCTOR HAS MADE SHORT DEDUCTION. WHEN THE DEDUCTOR WAS ASKED TO EXPLAIN THE REASONS FOR NON - DEDUCTION/SHORT DEDUCTION OF TAX AT SOURCE, THE DEDUCTOR SUBMITTED FORM NO.15G/15H OF SOME OF THE CUSTOMERS AND HAS NOT OFFERED ANY EXPLANATION IN THE REMAINING CASES. THE AO FURTHER OBSERVED THAT THE DEDUCTOR HAS NOT DEDUCTED THE TDS ON THE BASIS OF FORM NO.15G/15H . E VEN THOUGH THE INTEREST PAYMENT WAS MORE THAN THE BASIC LIMIT , THE DEDUCTOR PAID THE INTEREST WITHOUT DEDUCTION OF TAX AT SOURCE OBTAINING FORM 15G/15H . THEREFORE, THE AO PROPOSED TO TREAT THE DEDUCTOR AS ASSESSEE IN DEFAULT, SINCE, IT HAS FAILED TO DEDUCT THE TAX AT SOURCE AND REMIT TO THE GOVERNMENT ACCOUNT WITHIN THE STIPULATED TIME AS PRESCRIBED UNDER THE 3 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR INCOME TAX ACT, 1961 (IN SHORT ACT). ACCORDINGLY ISSUED THE SHOW CAUSE NOTICE CALLING FOR EXPLANATION OF THE ASSESSEE INTIMATING THE DEFAUL T AMOUNT OF RS.13,96,381/ - IN 15 CASES EXCLUDING INTEREST U/S 201(1A) FOR THE F.Y. 2013 - 14 (A .Y. 2014 - 15) AND RS.18,71,389/ - FOR THE F.Y.2014 - 15 (A.Y.2015 - 16) IN 16 CASES . 3. IN RESPONSE TO THE SHOW CAUSE NOTICE, THE ASSESSEE FILED REPLY STATING THAT IN THE CASE OF HINDU COLLEGE AND HINDU HIGH SCHOOLS COUNCIL, RETURN OF INCOME FOR THE A.Y.2014 - 15 WAS FILED, IN THE CASE OF SMT.KOLLA SIVANAGENDRAMMA AND SMT.A. LEELA SAVITRI DEVI STATED THAT FORM NO.15G WAS OBTAINED AND NO EXPLANATION WAS OFFERED IN THE REMAINING CASES. AFTER CONSIDERING THE REPLY OF THE ASSESSEE, THE AO RAISED DEMAND OF 17,95,87 4/ - ON 15 DEPOSITORS FOR THE F.Y.2013 - 14(A.Y.2014 - 15) AS PER THE DETAILS GIVEN BELOW : SL. NO. NAME OF THE DEPOSITOR PAN SHORT DEDUCTION MONTHS INT. U/S 201(1A) TOTAL CASES WHERE INTEREST PAYMENT EXCEEDED BASIC LIMIT 1. VASAVI VIDYA NIDHI COMMITTEE VASAVI VIDYA NIDHI MERIT STUDENTS SCHOLARSHIP FUND AAATV1584A 743277 37 275012 1018289 2. SREE KASI VYSYA SATRA SANGAM AAETS3092E 296224 37 109603 405827 3. HINDU COLLEGE DEVELOPMENT AND EDUCATIONAL ACADEMY AAABH0044H 32603 37 12063 44666 4. KANNA RANGAIAH CHARITABLE TRUST AACTK1262E 69420 37 25685 95105 5. MERCHANTS MINI AAALM0048A 22963 37 8496 31459 4 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR MUTUALLY COOP THRIFT 6. SECRETARY AND CORRESPONDENT TJPS COLLEGE GUNTUR AAATT8931D 17189 37 6360 23459 7 KOLLA SIVA NAGENDRAMMA AGTPK2534N 36947 37 13670 50617 8 POLISETTY SOMASUNDARAM CHARITIES AAATP6658D 27185 37 10058 37243 9. SRI VASAVI NITYANNA SATRA VANAPRASTHASRAMA SEVA SAMITHI AABTS6325D 25488 37 9430 34918 10 A LEELA SAVITRI DEVI ACOPL9461E 24870 37 9202 34072 11 PARUCHURI NAGA RATNA AHCPP6775G 927 37 343 1270 12 UTUKURI KOTAIAH AAAPU9482G 6209 37 2297 8507 13 NEMALIKANTI DESHMUKH AJUPN4621R 5345 37 1978 7323 14 GURRAM KOTESWARARAO ACYPG9232E 112 37 42 154 15 TKD PRASAD NO PAN 2098 37 776 2875 TOTAL 13,10,857 4,85,017 17,95,874 3.1. SIMILARLY, THE AO RAISED THE DEMAND OF RS.18,71,389/ - ON 16 DEPOSITORS FOR THE F.Y. 2014 - 15(A.Y.2015 - 16) AS PER THE LIST FURNISHED HEREUNDER : SL.NO. NAME OF THE DEPOSITOR PAN INT. PAID TDS NOT MADE DELAY IN MONTHS INT. U/S 201(1A) TOTAL CASES WHERE INTEREST PAYMENT EXCEEDS BASIC LIMIT 1. VASAVI VIDYA NIDHI COMMITTEE AAATV1584A 5698061 569806 25 142452 712258 2. HINDU COLLEGE DEVELOPMENT AND EDUCATIONAL ACADEMY AAABH0044H 1987960 198796 25 49699 248495 3. SREE KASI VYSYA SATRA SANGAM AAETS3092E 1475095 147510 25 36877 184387 4. MERCHANTS MINI MUTUALLY COOP THRIFT AND CREDIT SOCIETY LTD. AAALM0048A 906446 90645 25 22661 113306 5. KANNA RANGAIAH CHARITABLE TRUST AACTK1262E 668300 66830 25 16708 83538 6. COMMISSIONER OF COLLEGIATE EDUCATION HYD AND SECRETARY AAATT8931D 571976 57198 25 14299 71497 7. KOLLA AGTPK2534N 409896 40990 25 10247 51237 5 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR VENKATESWARLU 8. SRI VASAVI NITYANNA SATRA VANAPRASTHASRAMA SEVA SAMITHI AABTS6325D 350395 35039 25 8760 43799 9. POLISETTY SOMASUNDARAM CHARITIES AAATP6658D 344974 34497 25 8624 43122 10. KOLLA SIVA NAGENDRAMMA AGTPK2534N 300264 30026 25 7507 37533 1 1 NARANGI DEVI 292163 29216 25 7304 36520 12 BABITA DEVI 282939 28294 25 7073 35367 13 GUNDA SIVA SURYA KUMARI 269871 26987 25 6747 33734 TOTAL 13558341 1355834 25 338959 1694793 NO PAN CASES 14 MORISETTY SAMBASIVA RAO WRONG PAN 265598 53120 25 13280 66399 15 VASUNDHARA DEVI SV NO PAN 11088 2218 25 554 2772 16. SUMAN PINNAMANENI VEERAGANDHAM NO PAN 429702 85940 25 21485 107425 TOTAL 706387 141277 35319 176597 14264728 1497112 374278 1871389 4. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) CONFIRMED THE ORDER OF THE AO. BEFORE THE CIT(A), THE ASSESSEE SUBMITTED FORM 15G/15H IN THE CASE OF 7 INDIVIDUAL CUSTOMERS. THE ASSESSEE ARGUED BEFORE THE LD .CIT(A) THAT OUT OF 16 CUSTOMERS, 7 CUSTOMERS ARE BEING TRUSTS AND THEIR INCOME WAS EXEMPT, HENCE THE TDS IS NOT APPLICABLE IN TRUST CASES WHOSE INCOME IS EXEMPT. THE LD.CIT(A) REJECTED THE ASSESSEES EXPLANATION OBSERVING THAT BANK IS NOT THE AUTHORITY TO DE CIDE THE EXEMPTION OF INCOME AND IT IS THE DEDUCTEE WHO HAS TO SUBMIT NECESSARY DOCUMENTS CLAIMING EXEMPTION OF INCOME. 6 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR THE LD.CIT(A) HELD THAT THE BANK FAILED TO FURNISH ANY EVIDENCE CLAIMING EXEMPTION OF INCOME IN TRUST CASES, HENCE CONFIRMED THE ACTION OF THE AO . 4.1. THE LD.CIT(A), WITH REGARD TO THE FORM 15G/15H IN THE CASE OF INDIVIDUAL CUSTOMERS OBSERVED THAT WHEN THE ASSESSEE HAS NOT PRODUCED THE FORM 15G/15H BEFORE THE AO, PRODUCTION OF 15G/15H IS AN AFTERTHOUGHT AND ACCORDINGLY UPHELD THE ACTION OF THE AO. FOR THE SAKE OF CLARITY AND CONVENIENCE, WE EXTRACT RELEVANT PART OF THE ORDER OF THE CIT(A) WHICH READS AS UNDER : 5.2. GROUND NO. 2 TO 5 RELATES TO NON DEDUCTION OF TAX U/S. 194A OF THE I.T.ACT. THE APPELLANT DEDUCTOR HAD NOT DEDUCTED TAX IN CASE OF 16 CUSTOMERS U/S.194A OF THE I.T. ACT. THE APPELLANT DEDUCTOR HAD NOT DEDUCTED TAX IN SOME CASES EVEN THOUGH THE INTEREST PAYMENT IS MORE THAN BASIC LIMIT OF RS. 10,000/ - . DURING THE COURSE OF SURVEY A CTION BY THE ASSESSING OFFICER TDS, THE APPELLANT HAS PRODUCED FORM NO. 15G / 15H IN CASE OF SOME CUSTOMERS AND HAS FAILED TO PRODUCE IN CASE OF 16 CUSTOMERS. SINCE THE ASSESSEE DEDUCTOR HAS FAILED TO DEDUCT TDS AS PER THE PROVISIONS U/S. 194A, THE ASSESSIN G OFFICER HAS TREATED THE APPELLANT AS AN ASSESSEE IN DEFAULT U/S. 201(1A) OF THE I.T. ACT FOR THE YEAR UNDER CONSIDERATION. NOW, THE APPELLANT HAS COME WITH THE EXPLANATION THAT OUT OF THESE 16 CUSTOMERS, 7 CUSTOMERS BEING TRUST, THE APPELLANT DID NOT CO MPLY WITH THE PROVISIONS OF U/S. 194A OF THE I.T. ACT AS THE INCOME OF THE THESE TRUST CUSTOMERS ARE EXEMPT FROM TAX. THIS PLEA OF THE APPELLANT IS NOT TENABLE WHY BECAUSE, THE BANK AUTHORITIES DO NOT KNOW WHETHER THE TRUST CUSTOMERS CAN SPEND 85% OF THEIR RECEIPTS FOR THE OBJECTS OF THE TRUST OR NOT. IT IS PREMATURE TO COME TO CONCLUSION BEFOREHAND THAT THESE TRUST CLIENTS WOULD QUALIFY ALL THE CONDITIONS LAID DOWN U/S.13 TO CLAIM EXEMPTION U/S.11 EVEN BEFORE THEY DRAW THEIR INCOME AND EXPENDITURE ACCOUNT FOR F.Y. 2013 - 14. THESE TRUST CLIENTS ARE NOT CONNECTED TO APPELLANT BANK IN ANY WAY EXCEPT KEEPING THEIR FUNDS WITH THE ASSESSEE BANK. HOW THE BANK AUTHORITIES WOULD KNOW THAT THE TRUST CLIENT WOULD FULFIL ALL THE CONDITIONS TO CLAIM EXEMPTION U/S - .1 1 OF THE I.T. ACT. THEREFORE, THE PLEA OF THE APPELLANT BANK THAT THEY NEED NOT DEDUCT TAX U/S. 194A IN CASE OF THE TRUST CLIENTS IS NOT ACCEPTABLE. THE REMAINING 7 CUSTOMERS ARE INDIVIDUALS. THE APPELLANT BANK HAS PRODUCED FORM NO. 15G AND I5H NOW. HAD THEY BE EN FILED BY THE CUSTOMERS THEY WOULD HAVE BEEN PRODUCED TO THE ASSESSING OFFICER DURING THE COURSE OF SURVEY ACTION. WHEN THE BANK 7 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR AUTHORITIES PRODUCED THE SAME IN CASE OF OTHER CLIENTS, THERE IS NO REASON FOR NOT PRODUCING THE SAME IN CASE OF THESE CLIENT S. HENCE, I CONCLUDE THAT THESE FORMS ARE PREPARED, OBTAINED FROM ITS CUSTOMERS NOW. IT IS NOTHING BUT AFTER THOUGHT. THE APPELLANT FURTHER ARGUED THAT ONE OF THE CLIENT I.E., MERCHANTS MINI MUTUALLY AIDED COOPERATIVE THRIFT AND CREDIT SOCIETY LIMITED IS R EGISTERED UNDER APMAC SOCIETIES ACT AND IT IS DOING BUSINESS IN BANKING. HENCE, IT IS NOT REQUIRED TO DEDUCT TAX AS A SOCIETIES INCOME IS EXEMPT U/S. 80(P)(I) OF THE I.T. ACT. THIS ARGUMENT IS NOT ACCEPTABLE BECAUSE THE PROVISIONS OF SECTION 194A ARE APPLI CABLE TO ALL ASSESSEES IRRESPECTIVE OF THEIR STATUS WHOEVER HAS BEEN PAID INTEREST OTHER THAN INTEREST ON SECURITIES ABOVE THRESHOLD VALUE OF RS.10,000/ - AND RS . 5,000/ - IN CASE OF TIME DEPOSITS. THE APPELLANT GROSSLY FAILED TO COMPLY WITH THE PROVISIONS U /S .194A OF THE I.T. ACT. THEREFORE, I HOLD THAT THE ACTION TAKEN BY THE ASSESSING OFFICER IS CORRECT AND I UPHELD THE ORDER PASSED BY THE INCOME TAX OFFICER (TDS), GUNTUR. 5. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL AND FILED A PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE RELATING TO COPIES OF ACKNOWLEDGEMENT OF RETURNS OF INCOME IN THE CASE OF KANNA RANGAIH CHARITABLE TRUST AND V ASAVI NITYANNADANA VANAPRASTHASRAMA SEVASAMITHI. THE ASSESSEE HAS FILED THE ADDITIONAL EVIDENCE SHOWING THAT THE DEDUCTEES HAVE FILED THE RETURNS OF INCOME CLAIMING EXEMPTION U/S 11. THE LD.AR SUBMITTED THAT IN VIEW OF THE DECISION OF HONBLE SUPREME COU RT IN THE CASE OF HINDUSTAN COCA COLA BEVERAGES PVT. LTD., 293 ITR 226 IF THE BENEFICIARY HAVE FILED THE RETURNS OF INCOME ADMITTING THE INCOME RELATING TO THE INTEREST RECEIVED BY IT, THERE IS NO CASE FOR TREATING THE ASSESSEE FOR LIABILITY U/S 201. HOWEV ER WITH REGARD TO THE LIABILITY U/S 201(1A), THE LD.AR RELIED ON THE GROUNDS. 8 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR 6. ON THE OTHER HAND THE LD.DR SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 7 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL PLACED ON RECORD. DURING THE APPEAL HEARING, THE LD.AR RAISED THE FOLLOWING ISSUES RELATING TO DIFFERENT SITUATIONS OF VARIOUS DEDUCTIONS . (I) FIRST SUCH SITUATION IS WHERE THE BENEFICIARIES(DEDUCTEES)HAVE FILED THE RETURN OF INCOME: THE LD.AR ARGUED THAT IN SUCH SITUATION RAISING THE DEMAN D U/S 201 IS NOT PERMISSIBLE IN VIEW OF THE HONBLE APEX COURTS DECISION IN THE CASE OF HINDUSTAN COCA COLA BEVERAGES PVT. LTD. VS. CIT DATED 16.08.2007 REPORTED IN 293 ITR 226. WE AGREE WITH THE LD.AR AND WE REMIT THE MATTER BACK TO THE FILE OF THE AO TO VERIFY THE CORRECTNESS OF THE RETURNS FILED BY ALL THE DEDUCTEES AND RESTRICT THE DEMAND TO THE EXTENT OF 201(1A). THE ASSESSEE IS DIRECTED TO SUBMIT THE NECESSARY DOCUMENTS BEFORE THE AO. ACCORDINGLY, THE APPEAL OF THE ASSESSEE RELATING TO THE DEDUCTE ES WHO FILED THE RETURNS OF INCOME DECLARING THE INCOME RELATING TO THE INTEREST RECEIVED STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES FOR BOTH THE ASSESSMENT YEARS. THE AO IS DIRECTED TO GIVE OPPORTUNITY TO THE ASSESSEE BEFORE CONCLUDING THE PROCEEDINGS. 9 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR 8. THE NEXT CATEGORY OF THE CASES ARE, THE DEDUCTEES FILED FORM 15G/15H BEFORE THE CIT(A). THE LD.AR ARGUED THAT HAVING COLLECTED FORM 15G/15H, THE DEDUCTOR IS NOT PERMITTED TO COLLECT THE TDS, HENCE, THE AO IS NOT JUSTIFIED IN TREATING THE ASSESSEE AS ASSES SEE IN DEFAULT AND RAISING THE DEMAND U/S 201/201(1A) OF THE ACT. 9. WE HAVE HEARD THE RIVAL CONTENTIONS AND AGREE WITH THE LD.AR THAT IF, THE DEDUCTOR COLLECTS FORM 15G/H, THERE IS NO NEED TO DEDUCT THE TAX FROM THE ELIGIBLE ASSESSEES. HOWEVER IT IS DUTY OF THE DEDUCTOR TO ESTABLISH THAT THE FORMS - 15G/H WERE OBTAINED BEFORE THE DUE DATE OR BEFORE MAKING THE PAYMENT . HAVING NOT FURNISHED THE COPIES OF 15G/15H DURING THE COURSE OF SURVEY OR IN RESPONSE TO THE SHOW CAUSE NOTICE ISSUED BY THE AO, IT IS ESTABL ISHED THAT THE DEDUCTOR HAS NOT OBTAINED THE FORM 15G/15H TILL THE DATE OF SUBMISSION OF EXPLANATION TO THE SHOW CAUSE NOTICE. HENCE, IT IS THE OBLIGATION ON THE PART OF THE DEDUCTOR TO ESTABLISH THAT FORM 15G/15H WERE OBTAINED BEFORE MAKING THE PAYMENT. THE LD.AR DID NOT PRODUCE ANY EVIDENCE TO ESTABLISH THAT FORM 15G/15H WAS OBTAINED BEFORE MAKING THE PAYMENT OR BEFORE DUE DATE. THE FORM 15G/15H REQUIRED TO BE FILED BEFORE THE CIT/PR.CIT HAVING JURISDICTION AND THE ASSESSEE HAS NOT EVEN PRODUCED THE EVID ENCE TO SHOW THAT THE SAID FORMS WERE FILED BEFORE THE CIT/PR.CIT 10 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR BEFORE THE DUE DATE AS PROVIDED U/S 197A/RULE 29C . DURING THE SURVEY PROCEEDINGS, THE BANK AUTHORITIES COULD NOT PRODUCE THE ABOVE FORM 15G/15H AND NO EXPLANATION WAS OFFERED BY THE DEDUCTO R BEFORE THE AO. THERE IS NO EVIDENCE TO SHOW THAT FORM 15G/15H WAS COLLECTED BEFORE THE DUE DATE. IN THE ABSENCE OF ANY EVIDENCE TO ESTABLISH THAT THE ASSESSEE HAD COLLECTED THE FORMS BEFORE THE DUE DATE AND EVEN FAILED TO FURNISH FORM 15G/15H BEFORE T HE CONCERNED PR.CIT BEFORE THE DUE DATE, WE DO NOT FIND ANY REASON TO DISAGREE WITH THE LD.CIT(A) THAT PRODUCTION OF FORM 15G/15H BEFORE THE CIT(A) IS NOTHING BUT AN AFTERTHOUGHT. ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD.CIT(A) RELATING TO THE DEDUCTEES OF FORM 15G/15H CASES AND CONFIRM THE DEMAND RAISED BY THE AO. ACCORDINGLY, THE APPEAL OF THE ASSESSEE RELATING TO DEDUCT EES IN WHOSE CASE THE FORMS 15G/ 15 H WERE NOT PRODUCED BY THE DEDUCTOR IS DISMISSED. 10. THE NEXT ISSUE IS WITH REGARD TO FORM15G/H WITH WRONG PAN OR WITHOUT PAN. FOR THE FINANCIAL YEAR 2013 - 14 THE DEDUCTOR HAS FURNISHED FORM - 15G IN THE CASE OF TKD PRASAD WITHOUT HAVING PAN. THOUGH FORM - 15G WITHOUT PAN IS INVALID, IN THIS CASE THE AMOUNT INVOLVED WAS ONLY RS. 2098/ - AND THE ASSESSEE HAS FURNISHED THE PHOTO COPY OF THE PAN CARD IN 11 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR PAGE NO.63 OF THE PAPER BOOK. THEREFORE, WE DIRECT THE AO TO DELETE THE DEMAND RAISED U/S 201/201(1A) IN THE CASE OF TKD PRASAD. 11. FOR THE FINANCIAL YEAR 2014 - 15 THE DEDUCTOR HAS F URNISHED FORM - 15G IN THE CASE OF M.SAMBASIVA RAO AND THE AO RAISED THE DEMAND FOR FURNISHING FORM 15G/15H WITHOUT PAN OR WRONG PAN. THE ASSESSEE HAS FURNISHED THE COPY OF PAN CARD IN PAGE NO.80 OF THE PAPER BOOK AND THE INTEREST PAYMENT EXCEEDS THE TAXABL E LIMIT. THEREFORE, THE DEDUCTEE REQUIRED TO OBTAIN NO DEDUCTION CERTIFICATE U/S 197 R.W.RULE 29 AND NOT FORM 15G. THEREFORE, WE HOLD THAT THE AO HAS RIGHTLY TREATED THE ASSESSEE AS ASSESSEE IN DEFAULT AND RAISED THE DEMAND. ACCORDINGLY WE UPHOLD THE ORD ER OF THE LD.CIT(A) AND DISMISS THE APPEAL OF THE ASSESSEE ON THIS ISSUE. 11.1. FINANCIAL YEAR 2014 - 15 THE AO HAS RAISED THE DEMAND IN RESPECT OF VASUNDHARA DEVI FOR NOT FURNISHING THE PAN NUMBER. THE ASSESSEE HAS FURNISHED THE PHOTO COPY OF THE PAN CARD IN PAGE NO.81 OF THE PAPER BOOK. SINCE THE ASSESSEE HAS FURNISHED THE FORM 15G/15H AND THE AMOUNT OF INTEREST PAID WAS ONLY RS.11,088/ - , WE HOLD THAT THE DEDUCTEE HAS COMPLIED WITH THE RULES, ACCORDINGLY, WE DIRECT THE AO TO DELETE THE DEMAND RAISED U/S 201/201(1A) IN THE CASE OF SMT. VASUNDHARA DEVI. 12 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR 11.2 . FOR THE FINANCIAL YEAR 2014 - 15 THE AO HAS ALSO RAISED THE DEMAND IN RESPECT SUMAN PINNAMANENI VEERAGANDHAM, THE AMOUNT OF INTEREST PAID TO THE DEDUCTEE WAS RS.4,29,702/ - WHICH EXCEEDS THE TAXABLE AMOUNT. FOR NON DEDUCTION OF TAX AT SOURCE, THE DEDUCTEE IS REQUIRED TO OBTAIN NO TAX DEDUCTION CERTIFICATE FROM THE AO U/S 197 R.W.RULE29. IN PAGE NO.82 OF THE PAPER BOOK, GPA HOLDER OF THE DEDUCTEEE HAS FILED A LETTER ADDRESSED TO BRANCH MANAGER, LAKSHMI VILAS BANK ON 26.09.17 WHICH CONSTITUTE ADDITIONAL EVI DENCE AND NOT PLACED BEFORE THE AO. THE ASSESSEE HAS NOT FILED ANY PETITION FOR ADMISSION OF ADDITIONAL GROUNDS. EVEN OTHERWISE, SINCE THE AMOUNT EXCEEDED THE BASIC LIMIT OF TAXATION, IN THE ABSENCE OF CERTIFICATE U/S 197, THE BANK IS OBLIGED TO DEDUCT T HE TAX AT SOURCE. HAVING FAILED TO DEDUCT THE TAX AT SOURCE AND REMIT TO THE GOVERNMENT ACCOUNT, THE AO HAS RIGHTLY TREATED THE ASSESSEE AS ASSESSEE IN DEFAULT. WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE LD.CIT(A). ACCORDINGLY, THE APPE AL OF THE ASSESSEE ON THIS ISSUE IS DISMISSED. 1 2 . IN THE RESULT, THE APPEAL S OF THE ASSESSEE ARE PARTLY ALLOWED. 13 I.T.A. NO S.163/VIZ/2019 & 164/VIZ/2019 M/S LAKSHMI VILAS BANK LTD., GUNTUR ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST JUNE 2019. S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 21 .06.2019 L.RAMA, SPS / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE - M/S LAKSHMI VILAS BANK LTD., 23 - 1 - 97, MAIN ROAD, PATNAM BAZAR, GUNTUR 2. / THE REVENUE INCOME TAX OFFICER, WARD - 1(TDS), GUNTUR 3. THE COMMISSIONER OF INCOME TAX , TDS, VIJAYAWADA 4. THE COMMISSIONER OF TAX (APPEALS) - 2 , GUNTUR 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM