Vijaya Bank, Belagavi V. ITO, TDS, Ward - 1, Belagavi

ITA 207/PAN/2018

AI Insights

The case involves Vijaya Bank, Tilakwadi Branch, which appealed against the orders of the Commissioner of Income Tax (Appeals), Belagavi, for the assessment years 2012-13 to 2014-15. The bank was penalized for not deducting TDS on interest payments made to Vishveshvaraya Technological University, which was not exempt under the relevant section of the Income Tax Act. The bank's subsequent application for rectification of the order was also rejected. The Tribunal's decision was based on the lack of merit in the bank's grounds of appeal and the failure to demonstrate a mistake apparent from the record in the original order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136965 (ITAT-PANAJI)
• Duration Of Justice: 5 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: WT(D)
• Next Hearing Date: 15-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 10-05-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: TDS
• Section: 154; 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI – VIRTUAL COURT BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.207 to 209/PAN/2018 िनधाᭅरण वषᭅ / Assessment Years : 2012-13 to 2014-15 Vijaya Bank, Tilakwadi Branch, Belagavi, Karnataka – 590001. PAN : AAACV4791J Vs. ITO, TDS, Ward-1, Belagavi. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: These are the appeals filed by the assessee directed against the separate orders of ld. Commissioner of Income Tax (Appeals), Belagavi [‘the CIT(A)’] dated 14.03.2018 for the assessment years 2012-13 to 2014-15 respectively. 2. Since the identical facts and common issues are involved in the above captioned three appeals of the assessee, we proceed to dispose of the same by this common order. Assessee by : P.G. G. & Co. Revenue by : Shri N. Shrikanth Date of hearing : 16.08.2023 Date of pronouncement : 25.08.2023 ITA Nos.207 to 209/PAN/2018 2 3. For the sake of convenience and clarity, the facts relevant to the appeal of the assessee in ITA No.207/PAN/2018 for the assessment year 2012-13 are stated herein. ITA No.207/PAN/2018, A.Y. 2012-13 : 4. Briefly, the facts of the case are that the appellant is a Branch of Public Sector Banking Company. During the financial year 2011-12 relevant to the assessment year under consideration, the appellant bank paid interest on deposit of Rs.40,53,727/- to the Vishveshvaraya Technological University, Belagavi without deducting TDS. The Income Tax Officer, TDS Ward passed an order dated 16.02.2015 treating the appellant bank as “assessee in default” u/s 201(1) and section 201(1A) of the Income Tax Act, 1961 (‘the Act’) determining the TDS interest u/s 201(1) of Rs.4,05,373/- and section 201(1A) of Rs.1,41,855/-. 5. Being aggrieved by the above action of the TDS Officer, an appeal was filed before the ld. CIT(A), who vide impugned order dated 10.03.2017 considering the fact that the payee i.e. Vishveshvaraya Technological University, Belagavi does not enjoy ITA Nos.207 to 209/PAN/2018 3 the exemption u/s 10(23C)(iiiab) of the Act nor this payee filed Form 15G, confirmed the action of the TDS Officer. 6. Subsequently, the appellant bank made an application u/s 154 dated 25.10.2017 before the ld. Commissioner of Income Tax (Appeals), Belagavi on the ground that since the Department had already recovered tax from the payee, the tax need not be deducted by the appellant bank on interest paid to the latter. However, the said application u/s 154 was rejected by the ld. Commissioner of Income Tax (Appeals), Belagavi by holding that rectification was sought altogether on the new grounds, which does not emanate from the original order of the ld. CIT(A) dated 10.03.2017. 7. Being aggrieved, the appellant is in appeal before us in the present appeal. 8. When the appeal was called on, none appeared on behalf of the appellant-assessee despite due service of notice of hearing. Therefore, we proceed to dispose of the matter after hearing the ld. Sr. DR and perusing the material on record. 9. The grounds of appeal raised by the appellant do not emanate from the original order of the ld. CIT(A) passed on 10.03.2017. ITA Nos.207 to 209/PAN/2018 4 From the material on record, it is very much clear that the issues sought to be rectified u/s 154 does not emanate from the original order passed by the ld. CIT(A) dated 10.03.2017. Thus, it is clear that the appellant had failed to point out the mistake apparent from the record in the order of the ld. CIT(A) dated 10.03.2017. Thus, we do not find any merit it the grounds of appeal raised by the assessee. Accordingly, the grounds of appeal filed by the assessee stand dismissed. 10. In the result, the appeal filed by the assessee in ITA No.207/PAN/2018 for A.Y. 2012-13 stands dismissed. ITA Nos.208 & 209/PAN/2018, A.Y. 2013-14 & 2014-15 : 11. Since the facts and issues involved in remaining two appeals of the assessee are identical, therefore, our decision in ITA No.207/PAN/2018 for A.Y. 2012-13 shall apply mutatis mutandis to the remaining two appeals of the assessee in ITA Nos.208 & 209/PAN/2018 for A.Ys. 2013-14 & 2014-15 respectively. Accordingly, the remaining two appeals of the assessee in ITA Nos.208 & 209/PAN/2018 for A.Ys. 2013-14 & 2014-15 stands dismissed. ITA Nos.207 to 209/PAN/2018 5 12. To sum up, all the above captioned three appeals of the assessee stands dismissed. Order pronounced on this 25 th day of August, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 25 th August, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), Belagavi. 4. The CIT, TDS, Panaji, Goa. 5. DR, ITAT, Panaji. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.