Rashtriya Military School, Bangalore V. Additional Commissioner of Income Tax, TDS circle 2(1), Bangalore

ITA 1718/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3344 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 02-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISRA
• Assessee Lawyers: HARSHA HEGDE
• Keywords: Period of limitation; Time period of passing order; TDS
• Section: 234E; 200A; 73

Judgement Text

ITA NO.1718 /BANG/2019 RASHTRIYA MILITARY SCHOOL, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1718/BANG/2019 ASSESSMENTYEAR: 2013-14 RASHTRIYA MILITARY SCHOOL P.B. NO.25040, MUSEUM ROAD POST OFFICE, OPP. JOHNSON MARKET, HOSUR ROAD, BANGALORE- 560025 PAN NO.AAOFR0675C VS. ACIT, TDS CIRCLE-2(1) BANGALORE APPELLANT RESPONDENT A PPELLANT BY : SHRI HARSHA HEGDE, A.R. RESPONDENT BY : SHRI PRIYADARSHIMISRA, JCIT DATE OF HEARING : 05.03.2020 DATE OF PRONOUNCEMENT : 06.03.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTE D AGAINST ORDER DATED 10.6.2019 PASSED BY LD. CIT(A)-10, BANG ALORE AND IT RELATES TO THE ASSESSMENT YEAR 2013-14. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN ITANO.1718/BANG/2019 RASHTRIYA MILITARY SCHOOL, BANGALORE PAGE 2 OF 6 DISMISSING THE APPEAL OF THE ASSESSEE IN LIMINE WIT HOUT CONDONING THE DELAY IN FILING APPEAL BEFORE HIM. T HE ASSESSEE HAD CONTESTED THAT FEE LEVIED U/S 234E OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE AC T) BEFORE LD. CIT(A). 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. TH E ASSESSEE IS A SCHOOL RUN BY INDIAN ARMY TO MEET THE NEEDS OF WARDS OF DEFENSE PERSONNEL AND CIVILIANS. ACCORDING TO THE ASSESSEE, THE SALARY OF SCHOOL EMP LOYEES WAS DIRECTLY CREDITED TO THEIR INDIVIDUAL PERSONAL ACCOUNTS BY PRINCIPAL CONTROLLER OF DEFENSE ACCOUNTS (PCDA). ACCORDING TO THE ASSESSEE, IT WAS UNDER THE IMPRESS ION THAT PCDA MUST HAVE FILED TDS RETURN IN FORM NO.24Q . HOWEVER, SUBSEQUENTLY IT APPEARS THAT THE TDS RETUR NS HAVE BEEN FILED BY THE ASSESSEE WITH TAN NO.BLRM10446C WITH A DELAY. THE RETURNS FILED BY TH E ASSESSEE WERE PROCESSED U/S 200A OF THE ACT RELATIN G TO FINANCIAL YEAR 2012-13 (A.Y.2013-14) ON 18.9.2015, WHEREIN FEE U/S 234E OF THE ACT WAS LEVIED FOR THE PERIOD OF DELAY IN FILING THE STATEMENT OF TDS. THE ASSES SEE DID NOT CHALLENGE FEE LEVIED U/S 234E OF THE ACT WITHIN THE LIMITATION PERIOD. LATER THE APPEAL WAS FILED BEFO RE LD. CIT(A), WITH A DELAY OF ABOUT 2 YEARS. ITANO.1718/BANG/2019 RASHTRIYA MILITARY SCHOOL, BANGALORE PAGE 3 OF 6 3. BEFORE LD. CIT(A), THE ASSESSEE SUBMITTED THAT I T RECEIVED REMINDER FOR THE OUTSTANDING DEMAND FROM T DS CIRCLE ON 21.4.2018 AND THE PRESENT APPEAL WAS FILE D WITHIN 30 DAYS FROM THE DATE OF SERVICE OF OUTSTAND ING DEMAND NOTICE. HOWEVER, THE LD. CIT(A) DID NOT AGR EE WITH THE SUBMISSIONS OF THE ASSESSEE. HE EXPRESSED THE VIEW THAT THE ASSESSEE SHOULD HAVE FILED THE APPEAL WITHIN 30 DAYS FROM THE RECEIPT OF ORIGINAL INTIMATION ISS UED U/S 200A OF THE ACT. SINCE THE ASSESSEE DID NOT FURNIS H ANY REASON FOR THE DELAY, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE. 4. BEFORE US, THE LD. A.R. FURTHER SUBMITTED THAT T HE ASSESSEE WAS NOT AWARE OF THE PROCESSING OF TDS RET URN AND IT CAME TO KNOW ABOUT THE DEMAND RAISED UPON IT , ONLY WHEN IT RECEIVED THE INTIMATION SHOWING THE OUTSTANDING DEMAND. TWO OF SUCH NOTICES WERE RECEI VED, THE FIRST ONE ON 28.12.2017 AND THE SECOND ONE ON 23.3.2018. THE LD. A.R. SUBMITTED THAT THE ASSESSE E IS A SCHOOL RUN BY MINISTRY OF DEFENSE, GOVERNMENT OF IN DIA. HENCE THERE COULD NOT BE ANY INTENTION TO CONTRAVEN E THE PROVISIONS OF INCOME TAX. HE SUBMITTED THAT THE AS SESSEE HAS FILED APPEAL AFTER IT CAME TO KNOW ABOUT THE DE MAND. HE FURTHER SUBMITTED THAT THE REVENUE COULD NOT HAV E ITANO.1718/BANG/2019 RASHTRIYA MILITARY SCHOOL, BANGALORE PAGE 4 OF 6 RAISED DEMAND U/S 234E OF THE ACT AGAINST THE ASSES SEE AS PER THE DECISION RENDERED BY HONBLE KARNATAKA H IGH COURT IN THE CASE OF FATHERAJ SINGHVI VS. UNION OF I NDIA 73 TAXMANN.COM 252 (2016). 5. WITH REGARD TO THE DELAY IN FURNISHING TDS RE TURNS, THE LD. A.R. PLACED HIS RELIANCE ON CERTAIN CORRESPONDENCES THAT WERE EXCHANGED BETWEEN THE ASSESSEE AND THE INCOME TAX DEPARTMENT. HE SUBMITT ED THAT THE DELAY IN FILING THE TDS RETURN HAS OCCURRE D DUE TO CERTAIN TECHNICAL PROBLEMS FACED BY THE ASSESSEE. W E HAVE GONE THROUGH THOSE CORRESPONDENCES AND NOTICED THAT THE ASSESSEE HAS WRITTEN A LETTER TO THE TDS OFFICER ON 16.6.2015, REQUESTING HIM TO ACTIVATE THE TAN NUMBE R. THEREAFTER, THE ASSESSEE HAS AGAIN WRITTEN A LETTER ON 18.8.2015 REMINDING ABOUT THE DIFFICULTY FACED BY T HE ASSESSEE WITH REGARD TO THE TAN NUMBER. IN BETWEEN , A REMINDER WAS ALSO SENT ON 9.9.2015. 6. ON THE CONTRARY, THE LD. D.R. SUPPORTED THE ORDE R PASSED BY LD. CIT(A). 7. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND TAKI NG INTO ACCOUNT THE DIFFICULTY FACED BY THE ASSESSEE I N ITANO.1718/BANG/2019 RASHTRIYA MILITARY SCHOOL, BANGALORE PAGE 5 OF 6 ACTIVATION OF THE TAN NUMBER AND HAVING REGARD TO T HE FACT THAT THE ASSESSEE CAME TO KNOW OF THE DEMAND O NLY WHEN IT RECEIVED NOTICE FROM A TDS CIRCLE, WE ARE O F THE VIEW THAT THERE IS SUFFICIENT CAUSE FOR THE ASSESSE E IN FILING THE APPEAL BEFORE LD. CIT(A) BELATEDLY. ACCORDINGL Y, WE CONDONE THE DELAY IN FILING THE APPEAL BEFORE LD. C IT(A). 8. SINCE THE LD. CIT(A) HAS NOT ADJUDICATED THE ISS UE ON MERITS, WE RESTORE THE ISSUE TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATING IT AFRESH. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06.03.2020. SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 6 TH MARCH, 2020. /VG/ ITANO.1718/BANG/2019 RASHTRIYA MILITARY SCHOOL, BANGALORE PAGE 6 OF 6 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSIST ANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED