THE BRANCH MANAGER, INDIAN OVERSEAS BANK, AJMER V. INCOME TAX OFFICER (TDS), AJMER

ITA 202/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3666 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 09-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S NEHRA CIT DHK
• Keywords: TDS; Set aside

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ IN ITA NO. 202/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10. THE BRANCH MANAGER, INDIAN OVERSEAS BANK, ST. ANSLEM SCHOOL CAMPUS, MADAN GOPAL MARG, KAISER GANJ, AJMER. CUKE VS. THE INCOME TAX OFFICER, (TDS), AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/TAN NO. JDHI 01134 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE (A/D ON RECORD) JKTLO DH VKSJ LS@ REVENUE BY : SHRI A.S. NEHRA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07.05.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 10.05.2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 21 ST NOVEMBER 2017 OF LD. CIT (A), AJMER ARISING FROM THE ORDER P ASSED UNDER SECTION 201/201(1A) OF THE I.T. ACT FOR THE ASSESSMENT YEAR 2009-10. T HE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEA LS) GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING DISALLOWANC E/NON CONSIDERING OF DECLARATION FORM 15G/H AND CONFIRMIN G ALSO DEMAND OF TDS. 2. THE ORDER CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS BAD IN LAW, BASED ON SURMISES & CO NJECTURES, ARBITRARY & CAPRICIOUS, INJUDICIOUS AGAINST THE SET TLED PRINCIPLES OF LAW, AS SUCH THE SAME DESERVED TO BE AMENDED. 2 ITA NO. 202/JP/2018 THE BRANCH MANAGER, INDIAN OVERSEAS BANK, AJMER. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE DESP ITE THE NOTICE OF SERVICE AS PER THE ACKNOWLEDGEMENT ON RECORD AND FURTHER ON TH E LAST DATE OF HEARING THE ASSESSEE SOUGHT ADJOURNMENT WHICH WAS ADJOURNED FOR TODAY I.E. 07.05.2018. ACCORDINGLY, WE PROPOSE TO HEAR AND DISPOSE OFF THE APPEAL EX PARTE. 3. WE HAVE HEARD THE LD. D/R AND CAREFULLY PERUSED THE RELEVANT MATERIAL ON RECORD. THE AO PROCEEDED TO TREAT THE ASSESSEE AS ASSESSEE IN DEFAULT FOR NON DEDUCTION OF TAX IN RESPECT OF THE INTEREST PAYMENT MADE BY THE ASSESSEE TO 25 PERSONS. AFTER CONSIDERING THE REPLY OF THE ASSESS EE, THE AO FINALLY DETERMINED THE SHORT-FALL OF TAX DEDUCTED AT SOURCE OF RS. 4,45,82 8/- IN RESPECT OF INTEREST OF RS. 53,75,786/- PAID TO 20 PERSONS. AFTER COMPUTING TH E INTEREST @ 1% PER MONTH, THE AO FINALLY RAISED A DEMAND OF RS. 8,73,823/- VIDE O RDER DATED 30 TH MARCH, 2016 PASSED UNDER SECTION 201/201(1A) OF THE ACT. THE A SSESSEE CHALLENGED THE ACTION OF THE AO BEFORE LD. CIT (A) BUT COULD NOT SUCCEED. 4. WE FIND THAT THE ASSESSEE HAS CLAIMED THAT IT HA S OBTAINED FORM NO. 15G/15H FROM THE RECIPIENTS OF INTEREST IN QUESTION AND, TH EREFORE, THE ASSESSEE CANNOT BE HELD AS ASSESSEE IN DEFAULT FOR WANT OF DEDUCTION O F TDS UNDER SECTION 194A OF THE ACT. DURING THE APPELLATE PROCEEDINGS BEFORE THE LD . CIT (A), THE ASSESSEE FURTHER FILED THE DETAILS OF THE PERSONS TO WHOM THE INTERE ST WAS PAID AND CONTENDED THAT SOME OF THE PERSONS ARE SENIOR CITIZENS AND, THEREF ORE, THEIR INCOME DO NOT EXCEED THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO TAX. THE LD. CIT (A) CALLED FOR A REMAND REPORT FROM THE AO IN WHICH THE ASSESSEE FUR NISHED THE DETAILS OF THE PERSONS WHO HAD ALREADY PAID THE TAX AS WELL AS THE PERSONS WHO WERE SENIOR CITIZENS AND, THEREFORE, THE MAXIMUM AMOUNT OF INCO ME NOT CHARGEABLE TO TAX IN CASE OF SENIOR CITIZENS WAS RS. 2,25,000/- AND, THE REFORE, THE INTEREST PAID TO THE 3 ITA NO. 202/JP/2018 THE BRANCH MANAGER, INDIAN OVERSEAS BANK, AJMER. EXTENT OF THE SAID AMOUNT DOES NOT REQUIRE DEDUCTIO N OF TDS UNDER SECTION 194A WHEN THESE PERSONS HAVE ALREADY SUBMITTED FORM NO. 15G/15H. WE FIND THAT DESPITE ALL THESE DETAILS, THE LD. CIT (A) HAS CONF IRMED THE ACTION OF THE AO IN PARA 4.3 OF HIS ORDER AS UNDER :- 4.3. I HAVE GONE THROUGH THE ASSESSMENT ORDER, S TATEMENT OF FACTS, GROUNDS OF APPEAL, REMAND REPORT AND REJOINDER CARE FULLY. IT IS SEEN THAT THERE IS NO DISPUTE ABOUT THE FACT THAT INTERE ST OF RS. 53,75,786/- WAS PAID BY THE APPELLANT WITHOUT DEDUCTING THE TAX AT SOURCE U/S 194A. THE APPELLANT HAS CONTENDED THAT SINCE IT HA D OBTAINED FORM NO. 15H FROM THE RECIPIENTS OF THE INTEREST, THEREF ORE IT DID NOT DEDUCT THE TAX AT SOURCE AT THE TIME OF CREDITING OF INTER EST OF RS. 53,75,786/- TO 20 PERSONS MENTIONED AT PAGE NO. 3 & 4 OF THE OR DER. THE AO DID NOT ACCEPT THE CONTENTION OF THE APPELLANT BECAUSE THE INTEREST CREDITED IN THE ACCOUNT OF ABOVE REFERRED PERSON WA S MORE THAN RS. 1,50,000/-. THEREFORE, ACCORDING TO THE AO, THE ASS ESSEE WAS ASSESSEE IN DEFAULT IN RESPECT OF FOR NON DEDUCTIO N OF TAX AT SOURCE ON THE INTEREST OF RS. 53,75,786/- PAID TO THE ABOVE R EFERRED 20 PERSON. I AM IN AGREEMENT WITH THE OPINION OF THE AO. AS THE INTEREST CREDITED IN THE ACCOUNT OF ABOVE MENTIONED TWO PERSONS WAS MORE THAN RS. 1,50,000/-, THEREFORE THE APPELLANT WAS REQUIRED TO DEDUCT THE TAX AT SOURCE AT THE TIME OF CREDITING THE INTEREST OF RS. 53,75,786/- TO THE ABOVE REFERRED PERSONS. HENCE, THE DEMAND OF RS. 8, 73,823/- RAISED BY THE AO IN RESPECT OF NON DEDUCTION OF TAX AT SOURCE (RS.4,45,828) U/S 201 AND INTEREST ON THE NON DEDUCTION OF TAX AT SOU RCE (RS.4,27,995) U/S 201(1A) IS HEREBY CONFIRMED. THUS IT IS CLEAR THAT THE DETAILS FURNISHED BY THE ASSESSEE BEFORE LD. CIT (A) AS WELL AS IN THE REMAND PROCEEDINGS REGARDING THE PAYMENT OF TAX BY THE RECIPIENTS OF 4 ITA NO. 202/JP/2018 THE BRANCH MANAGER, INDIAN OVERSEAS BANK, AJMER. INTEREST AS WELL AS THE SENIOR CITIZENS IN WHOSE CA SE THE MAXIMUM AMOUNT NOT LIABLE TO TAX IS NOT RS. 1,50,000/- BUT RS. 2,25,000/-. A CCORDINGLY IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE MATTER HAS NOT BEEN EXAMINED PROPERLY BY THE LD. CIT (A). ACCORDINGLY WE SET ASIDE THE M ATTER TO THE RECORD OF THE AO FOR PROPER VERIFICATION AND EXAMINATION OF THE DETAILS AND FACTS AS PRODUCED BY THE ASSESSEE DURING THE REMAND PROCEEDINGS AND THEN ADJ UDICATE THE ISSUE AS PER LAW. NEEDLESS TO MENTION THAT THE ASSESSEE MAY BE GIVEN AN OPPORTUNITY OF HEARING. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 10/05/2 018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 10/05/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE BRANCH MANAGTER, INDIAN OVERS EAS BANK, KAISER GANJ, AJMER. 2. THE RESPONDENT THE ITO (TDS) AJMER. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 202/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 202/JP/2018 THE BRANCH MANAGER, INDIAN OVERSEAS BANK, AJMER.