Ashit Shipping Services P. Ltd., Kutch V. The ACIT, TDS Circle, Ahmedabad

ITA 1814/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94823 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 02-12-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 24-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VILASH V SHINDE
• Assessee Lawyers: M K PATEL
• Keywords: Rectification of order; Revised return
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD BEFORE S/SHRI RAJPAL YADAV, JM, & MANISH BORAD, AM. ITA NO.1814/AHD/2013 ASST. YEAR: 2008-09 ASHIT SHIPPING SERVICES P. LTD., PLOT NO.33, SECTOR-1A, ASHIT BUILDING, GANDHIDHAM (KUTCH) VS. ASST. CIT, TDS CIRCLE, AHMEDABAD. APPELLANT RESPONDENT PAN AABCA 8520B APPELLANT BY SHRI M. K. PATEL, AR RESPONDENT BY SHRI VILASH V. SHINDE, DR DATE OF HEARING: 2/12/2015 DATE OF PRONOUNCEMENT: 08/12/2015 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER. THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT(A) XXI, AHMEDABAD, IN APPEAL NO. CIT(A) XXI/11/ 11-12, DATED 22.4.2013. ORDER U/S 201(1)/201(1A) OF THE INCOME-T AX ACT, 1961 (IN SHORT THE ACT) WAS FRAMED ON 10.03.2012 BY ACIT, TD S CIRCLE, AHMEDABAD. IN THIS APPEAL ASSESSEE HAS RAISED FOLLO WING GROUNDS:- 1. THAT ON FACTS AND IN LAW, THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED IN CONFIRMING THE ORDER PASSED U/S 201(1)/201 (1A) OF THE ACT RAISING A DEMAND OF RS.2,14,330/-. 2. THAT ON FACTS AND IN LAW, IT OUGHT TO HAVE BEEN HELD THAT THE APPELLANT HAS PAID THE ACTUAL AMOUNT OF TDS OF RS.5 ,79,983/- ITA NO. 1814/AHD/2013 ASST. YEAR 2008-09 2 AND THE REVISED CORRECTED STATEMENT FILED IS ALSO A CCEPTED BY NSDL. 2. BRIEFLY STATED THE ASSESSEE COMPANY POSSESSES TA N AHMA04316E AND IS REGULARLY FILING ITS TDS RETURN. THIS APPEAL IS RELATED TO THE ORDER U/S 201(1)/201(1A) PASSED BY T HE ASSESSING OFFICER AFTER ASSESSING THE TDS RETURN OF QUARTER 3 RD RELEVANT TO F.Y. 2007-08 I.E. ASST. YEAR 2008-09 AND THEREBY RAISING DEMAND OF RS.2,14,330/- WHICH INCLUDES DEMAND OF INTEREST OF RS.83,250/-. APPEAL BEFORE CIT(A) COULD NOT BRING ANY RELIEF TO THE ASSESSEE. 3. AGGRIEVED, ASSESSEE IS NOW IN APPEAL BEFORE THE TRIBUNAL. 4. BOTH THE GROUNDS ARE INTER-RELATED, SO WE TAKE U P THEM TOGETHER FOR THE SAKE OF CONVENIENCE. 5. THE LD. AR SUBMITTED THAT ASSESSEE FILED ITS TDS RETURN FOR QUARTER 3 RD FOR FINANCIAL YEAR 2007-08 ON 2.2.2008 REPORTING T HAT INCOME-TAX DEDUCTED AT SOURCE FOR THE RELEVANT QUAR TER AT RS.7,01,986/-. SUBSEQUENTLY THE ASSESSEE REALIZED T HAT THERE WAS A MISTAKE IN THE DETAILS REPORTED IN THE TDS RETURN T O THE EXTENT THAT EXCESS DEDUCTION OF TAX AT SOURCE WAS REPORTED BY R S.1,31,076/- AS THE ASSESSEE VERIFIED FROM ITS RECORD THAT THE ACTU AL TAX DEDUCTED AT SOURCE FOR QUARTER -3 RD WAS RS.5,79,983/- AND NOT RS.7,01,986/-. AFTER REALIZING THIS MISTAKE ASSESSEE FILED CORRECTION ST ATEMENT WITH NSDL SUBMITTING THEREIN THE CORRECTION STATEMENT OF TDS DEDUCTED AT RS.5,79,983/- AND THIS CORRECTION STATEMENT WAS DUL Y ACCEPTED BY ITA NO. 1814/AHD/2013 ASST. YEAR 2008-09 3 NSDL. THE LD. AR FURTHER SUBMITTED THAT TDS DEDUCTE D AT RS.5,79,983/- WAS DULY DEPOSITED. 6. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDE RS OF LOWER AUTHORITIES. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. SOLITARY ISSUE IN THIS APPEAL IS THAT AS SESSEE FILED TDS RETURN IN FORM NO.26Q FOR QUARTER 3 RD FOR ASST. YEAR 2008-09 MENTIONING TDS DEDUCTED AT RS.7,01,986/- AND THEREA FTER WHEN ASSESSEE REALIZED THAT DUE TO MISTAKE TDS DEDUCTED HAS BEEN SHOWN EXCESS OF RS.1,31,076/- AND ACCORDINGLY FILED CORRECTION STATEMENT WITH NSDL WHICH IS REPORTED BY LD. AR TO HAVE BEEN ACCEPTED. ASSESSING OFFICER PASSED AN ORDER U/S 201 (1)/201(1A) BY PROCESSING THE ORIGINAL RETURN FILED ON 2.2.2008 AN D IN THIS ORDER THERE IS NO MENTION OF THE CORRECTION STATEMENT FILED BY THE ASSESSEE. 8. TDS RETURNS ARE REQUIRED TO BE FILED UNDER THE P ROVISIONS OF SECTION 200 OF THE ACT. THESE TDS RETURNS WERE BEIN G PREVIOUSLY FILED MANUALLY AND THEREAFTER INCOME-TAX DEPARTMENT OUTSO URCED THE FILING AND PROCESSING WORK OF SUCH TDS RETURNS THROUGH VAR IOUS AGENCIES WHO ARE AUTHORIZED BY DIRECTOR GENERAL (I.T. SYSTEM ) TO RECEIVE THE STATEMENT OF TDS OR CORRECTION STATEMENT OF TDS WHI CH IN THIS CASE IS NSDL. FURTHER CBDT VIDE ITS NOTIFICATION NO.3/2013 (F.142/39/2012- SO (TPL) DATED 15.1.2013 INTRODUCED CENTRALIZED PRO CESSING OF STATEMENT OF TDS SCHEME 2013, FOR SMOOTH FUNCTIONIN G OF THE TDS RELATED WORK WHICH INCLUDES ACCEPTING OF QUARTERLY TDS STATEMENT, ITA NO. 1814/AHD/2013 ASST. YEAR 2008-09 4 ACCEPTING OF CORRECTION STATEMENT, MAINTAINING OF D ATA OF TDS DEPOSITED AND RECONCILIATION OF TDS DEDUCTED WITH T DS DEPOSITED ALONG WITH CALCULATION OF TDS LIABILITY AS ARISING ON VARIOUS TYPES OF PAYMENTS WHICH ATTRACTS DIFFERENT TYPES OF TDS DATA S. 9. THE ABOVE REFERRED SCHEME DULY COVERS THE PROCED URAL ASPECT RELATING TO PROCESSING OF STATEMENT AND RECTIFICATI ON OF MISTAKES IN RULE- 5 & RULE-6 OF THE SCHEME WHICH READS AS BELOW :- FURNISHING OF CORRECTION STATEMENT OF TAX DEDUCTED AT SOURCE 4. (1) A DEDUCTOR SHALL FURNISH THE CORRECTION STATEM ENT OF TAX DEDUCTED AT SOURCE IN THE FORM SPECIFIED BY THE DIRECTOR GENERAL- ( A ) AT THE AUTHORISED AGENCY THROUGH ELECTRONIC MODE ; OR ( B ) ONLINE THROUGH THE PORTAL. (2) THE CORRECTION STATEMENT REFERRED TO IN SUB-PAR AGRAPH (1) SHALL BE FURNISHED UNDER DIGITAL SIGNATURE OR VERIFIED THROUGH A PROCESS IN ACCORDAN CE WITH THE PROCEDURE, FORMATS, AND STANDARDS SPECIFIED BY THE DIRECTOR GENERAL. PROCESSING OF STATEMENTS 5. (1) THE CELL SHALL PROCESS THE STATEMENT OF TAX DE DUCTED AT SOURCE FURNISHED BY A DEDUCTOR IN THE MANNER SPECIFIED UNDER SUB-SECTION (1) OF SECTI ON 200A OF THE ACT AFTER TAKING INTO ACCOUNT THE INFORMATION CONTAINED IN THE CORRECTION STATEME NT OF TAX DEDUCTED AT SOURCE, IF ANY, FURNISHED BY THE DEDUCTOR BEFORE THE DATE OF PROCESSING. (2) THE COMMISSIONER MAY- ( A ) ADOPT APPROPRIATE PROCEDURE FOR PROCESSING OF TH E STATEMENT OF TAX DEDUCTED AT SOURCE; OR ( B ) DECIDE THE ORDER OF PRIORITY FOR PROCESSING OF T HE STATEMENT OF TAX DEDUCTED AT SOURCE BASED ON ADMINISTRATIVE REQUIREMENTS. RECTIFICATION OF MISTAKE 6. (1) AN INCOME-TAX AUTHORITY OF THE CELL MAY, WITH A VIEW TO RECTIFYING ANY MISTAKE APPARENT FROM THE RECORD UNDER SECTION 154 OF THE ACT, ON ITS OWN MOTION OR ON RECEIVING AN APPLICATION FROM THE DEDUCTOR, AMEND ANY ORDER OR INTIMATION PASSED OR S ENT BY IT UNDER THE ACT. (2) AN APPLICATION FOR RECTIFICATION SHALL BE FURNI SHED IN THE FORM AND MANNER SPECIFIED BY THE DIRECTOR GENERAL. (3) WHERE A RECTIFICATION HAS THE EFFECT OF REDUCIN G THE REFUND OR INCREASING THE LIABILITY OF THE DEDUCTOR, AN INTIMATION TO THIS EFFECT SHALL BE SEN T TO THE DEDUCTOR ELECTRONICALLY BY THE CELL AND THE REPLY OF THE DEDUCTOR SHALL BE FURNISHED IN THE FORM AND MANNER SPECIFIED BY THE DIRECTOR GENERAL. (4) WHERE AN AMENDMENT HAS THE EFFECT OF REDUCING A REFUND ALREADY MADE OR INCREASING THE LIABILITY OF THE DEDUCTOR, THE ORDER UNDER SECTION 154 OF THE ACT PASSED BY AN INCOME-TAX AUTHORITY OF THE CELL SHALL BE DEEMED TO BE A NOTICE OF DEMAN D UNDER SECTION 156 OF THE ACT. ITA NO. 1814/AHD/2013 ASST. YEAR 2008-09 5 FROM ABOVE, WE CAN UNDERSTAND THAT TAX DEDUCTOR GET S SUFFICIENT OPPORTUNITY TO REVISE THE TDS RETURN(S) FILED BEFOR E SO MUCH SO THAT ONCE A CORRECTION STATEMENT OR REVISED TDS RETURN I S ACCEPTED ON THE PORTAL BY VARIOUS AUTHORISED AGENCIES WHICH IN THIS CASE IS NSDL THEN THE IDENTITY OF ORIGINAL TDS RETURN IS LOST AS THE SAME IS DULY REPLACED BY THE REVISED RETURN/CORRECTION STATEMENT. 10. GOING THROUGH THE CASE OF THE ASSESSEE WHERE OR IGINAL TDS RETURN HAS BEEN FILED SHOWING TDS DEDUCTED AT RS.7, 01,986/- AND TDS RETURN FILED ON 2.2.2008 AND LATER ON ASSESSEE REALIZED AFTER GOING THROUGH ITS BOOKS OF ACCOUNT THAT THE CORRECT FIGURE OF TDS DEDUCTED FOR QUARTER 3 RD FOR ASST. YEAR 200809 WAS RS.5,79,983/- AND NOT RS.7,01,986/-. BUT IN DUE COURSE OF TIME ASSESS MENT ORDER U/S 201(1)/201(1A) OF THE ACT WAS FRAMED BY ACIT-TDS WH EREIN ASSESSEE HAD SHOWN TO HAVE DEDUCTED TDS OF RS.7,01, 986/- AND TDS DEPOSITED IS SHOWN AT RS.5,79,983/- AND ACCORDI NGLY ASSESSEE HAS BEEN TREATED AS ASSESSEE IN DEFAULT FOR LOW TAX DEPOSIT OF RS.1,30,180/- AND COUPLED WITH INTEREST OF RS.83,25 0/- DEMAND OF RS.2,14,330/- HAS BEEN RAISED. THE LD. AR OF THE AS SESSEE SUBMITTED THAT THE ASSESSEE HAS ACTUALLY DEDUCTED RS.5,79,983 /- AND HAS DEPOSITED THE SAME AND HAS ALSO REVISED THE TDS RET URN BY FILING CORRECTION STATEMENT WITH NSDL AND ACCEPTED BY NSDL . 11. WE ARE, THEREFORE, OF THE VIEW THAT WITH REFERE NCE TO THE PROVISIONS OF THE ACT DULY SUPPORTED BY THE CENTRAL IZED PROCESSING OF STATEMENT OF TDS SCHEME 2013 REFERRED ABOVE, THE AS SESSEE IS ITA NO. 1814/AHD/2013 ASST. YEAR 2008-09 6 ENTITLED TO REVISE THE TDS RETURN AND ONCE THIS TDS RETURN HAS BEEN ACCEPTED BY NSDL THEN THE CORRECT AMOUNT OF TDS BY THE ASSESSEE FOR QUARTER 3 RD WILL STAND AT RS.5,79,983/- AND TO VERIFY THIS FAC T, WE SET ASIDE THE MATTER TO THE FILE OF ASSESSING OFFICER W ITH THE INSTRUCTION TO GIVE PROPER OPPORTUNITY TO THE ASSESSEE WHO WILL AP PEAR BEFORE THE ASSESSING OFFICER WITH PROOF OF REVISED RETURN FILE D FOR QUARTER 3 RD ALONG WITH NECESSARY DETAILS TO THE SATISFACTION OF ASSESSING OFFICER AND IF THE SAME ARE FOUND CORRECT THEN THE CONTENTI ON OF THE ASSESSEE TO BE ACCEPTED BY TAKING TDS DEDUCTED FOR QUARTER 3 RD AT RS.5,79,983/- IN PLACE OF RS.7,01,986/-. ACCORDINGL Y, THIS GROUND OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 12. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH DECEMBER, 2015 SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 08/12/2015 MAHATA/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, AHMEDABAD ITA NO. 1814/AHD/2013 ASST. YEAR 2008-09 7 1. DATE OF DICTATION: 7/12/2015 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 8/12/2015 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK:8 /12/15 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: