M/s State Bank of Hyderabad , Koppal V. Income TAx Officer TDS Ward , Bellary

ITA 1956/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7622 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 04-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PADMAMEENAKSHI J
• Assessee Lawyers: BALARAM R RAO
• Section: 133A; 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, B ENGALURU BEFORE S HRI N.V.VASUDEVAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER I TA NO. 1956 / BANG/2 0 1 7 (ASSESSMENT YEAR: 2012 - 13 ) STATE BANK OF HYDERABAD, (NOW MERGED WITH STATE BAN K OF INDIA), KARATAGI BRANCH, KARATAGI VILLAGE, TQ.GANGAVATHI - 583 229. DIST. KOPPAL DIST. KOPPAL. PAN: BLRSO 5672 C VS. APPELLANT INCOME - TAX OFFICER, TDS WARD, BELLARY RESPONDENT APPELLANT BY : SHRI BALARAM R RAO, ADVOCATE. RES PONDENT BY : SMT.PADMAMEENAKSHI, JCIT(DR) DATE OF HEARING : 16/07/2018 DATE OF PRONOUNCEMENT : 20 /07/2018 O R D E R PER INTURI RAMA RAO, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS), GULBARGA, DATED 28/07/2017 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO . 1956 /BANG/20 17 PAGE 2 OF 4 ITA NO . 1956 /BANG/20 17 PAGE 3 OF 4 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PUBLIC SECTOR BANKING COMPANY. SURVEY OPERATI ON S U/S 133A OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] W ERE CONDUCTED IN THE BUSINESS PREMISES OF THE ASSESSEE TO VERIFY TDS COMPLIANCE. DURING THE COURSE OF SURVEY OPERATIONS, IT WAS NOTICED BY THE TDS OFFICER THAT THE ASSESSEE - BANK HAD DEDUCTED TDS ON TERM DEPOSIT UNDER THE PROVISIONS OF SECTION 194A OF THE ACT TO THE EXTENT OF RS.9,38,332/ - OUT OF WHICH AN AMOUNT OF RS.32,820/ - WAS ONLY REMITTED TO THE GOVERNMENT ACCOUNT. THE TDS OFFICER ISSUED SHOW CAUSE NOTICE AS TO WHY THE ASSESSEE - BANK SHOULD NOT BE TREATED AS ASSESSEE IN DEFAULT FOR NOT REMITTING THE BALANCE SUM OF RS.9,05,512/ - . IN RESPONSE TO THE SAME, IT WAS SUBMITTED THAT THE ASSESSEE - BANK HAD CBS SOFTWARE WHEREIN IT AUTOMATICALLY DEDUCTS WHEREVER APPLICABLE EVEN IN CASES WHERE FORM 15G AND 15H ARE OBTAINED FROM THE DEPOSIT HOLDERS. SUBSEQUENTLY, AFTER INFORMATION IS FED INTO THE SYSTEM, TDS AMOUNT COLLECTED/DEDUCTED WAS REVERSED. IN THE PRESENT CASE, TDS OF RS.9,05,512/ WAS REVERSED AS THE ASSESSEE HAD OB TAINED FORM 15G AND 15H FROM DEPOSIT HOLDERS. THE SAID SUBMISSIONS OF THE ASSESSEE - BANK WAS REJECTED BY THE AO AND PASSED AN ORDER HOLDING THE ASSESSEE IN DEFAULT U/S 201(1) AND 201(1A) OF THE ACT VIDE ORDER DATED 27/03/2014. 4. BEING AGGRIEVED, AN AP PEAL WAS FILED BEFORE THE LD.CIT(A) , WHO CONFIRMED THE ACTION OF THE TDS OFFICER. 5. BEING AGGRIEVED, THE ASSESSEE - BANK IS BEFORE US IN THE PRESENT APPEAL. 6. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE CONTENTIONS ADVANCED ON BEHALF OF THE ASSESSEE - BANK THAT TDS WAS RECOVERED AND SUBSEQUENTLY REVERSED AFTER OBTAINING FORM S 15G AND 15H FROM THE CUSTOMERS REQUIRE VERIFICATION AT THE END OF THE TDS OFFICER AND CO - RELATION BETWEEN AMOUNT OF TDS REVERSED AND THE AMOUNT OR INTEREST IN RESPECT OF WHICH FORM S 15G ITA NO . 1956 /BANG/20 17 PAGE 4 OF 4 AND 15H OBTAINED FROM THE DEPOSITORS. ACCORDINGLY, WE RESTORE THE MATTER BACK TO THE FILE OF THE TDS OFFICER FOR PURPOSE OF VERIFICATION ON THE ABOVE LINES. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JU LY 2018 S D/ - SD/ - (N.V.VASUDEVAN) ( INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT M EMBER PLACE : BENGALURU. D A T E D : 20 / 0 7 /201 8 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE