Sandeep Dhawan, Bhubaneswar V. DCIT, CPC, Bangalore

ITA 215/CTK/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5330 (ITAT-CUTTACK)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 27-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J K LENKA
• Assessee Lawyers: R K NANDA
• Section: 143(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI C.M. GARG, JM & SHRI L.P. SAHU, AM . / ITA NO. 215 /CTK/201 9 ( / ASSESSMENT YEAR : 20 1 7 - 20 1 8 ) SANDEEP DHAWAN, AT - PLOT NO.42,VI P COLONY, NAYAPALLI, IRC VILLAGE, BHUBANESWAR VS. ITO, WARD - 3(5), BHUBANESWAR ./ PAN NO. : A CCPD 0465 C ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI R.K.NANDA, ADVOCATE /REV ENUE BY : SHRI J.K.LENKA , DR / DATE OF HEARING : 30 / 01 /20 20 / DATE OF PRONOUNCEMENT : 10/02 /20 20 / O R D E R PER L.P.SAHU , A M : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT( A ) - 2 , BHUBANESWAR , D ATED 26.04.2019 , ON THE FOLLOWING GROUNDS OF APPEAL : - LEVY OF INTEREST U/S.234C OF THE IT ACT AT RS.40,050/ - AS DEFAULTER FOR ENDING DECEMBER'2016 : FOR THAT, LEVY OF INTEREST U/S.234C OF THE IT ACT BY CPC IN PROCESSING U/S. 143(1) OF THE IT ACT BY TREATI NG THE APPELLANT AS 'ASSESSEE IN DEFAULT' IN DEPOSITING THE ADVANCE TAX FOR THE QUARTER ENDING DECEMBER'2016 IS BAD IN LAW BEING THE DEPOSIT/CREDIT OF ADVANCE TAX IN DUE TIME TO GOVERNMENT ACCOUNT AS PER THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. FO R THAT, LEVY OF INTEREST WITHOUT PROPER OF VERIFICATION OF EVIDENCES ON RECORDS BY THE LD. A.O./CPC IS BAD IN LAW AMOUNTS TO DELETION OF THE INTEREST. 3. FOR THAT, ANY OTHER GROUNDS INCIDENTAL TO THE GROUNDS OF THIS CASE MAY KINDLY BE PERMITTED TO URG E AT THE TIME OF HEARING OF THE CASE. 4. FOR THAT, ANY OTHER EVIDENCES INCIDENTAL TO THE GROUNDS OF THIS CASE MAY KINDLY BE PERMITTED TO ADDUCE AT THE TIME OF HEARING OF THE CASE. ITA NO. 215 /CTK/201 9 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INC OME ON 21.10.2017 SHOWING TOTAL INCOME OF RS. 81,54,620/ - AND CLAIMED DEDUCTION UNDER CHAPTER - VIA OF RS.1,50,000/ - . THEREAFTER THE TAX PAYABLE WAS DETERMINED AT RS. 23,77,172 / - WHICH WAS DULY PAID BY THE ASSESSEE AND FILED RETURN OF INCOME . THE CASE WAS PROC ESSED U/S.143(1) OF THE ACT BY THE CPC, BENGALURU BY COMMUNICATION REFERENCE NO. CPC/1718/A3/1809209039 AND T HE TAX LIABILITY WAS DETERMINED BY THE CPC AT RS. 24,24,226 / - . THEREAFTER THE NET DIFFERENCE OF RS.47,049/ - ROUNDING OFF TO RS.47,050/ - WAS DETERMINE D TO BE TAX LIABILITY BY THE CPC DUE TO EXCESS CALCULATION OR INTEREST U/S.234C OF THE ACT, 1961 . THE ASSESSEE HAD PAID ADVANCE TAX ON 15.12.2016 OF RS.16,00,000/ - WHICH WAS REFLECTING IN 26AS ON 19.12.2016 WHEREAS IT WAS DEBITED FROMT HE ACCOUNT OF THE AS SESSEE ON 15.12.2016. AGAINST WHICH THE ASSESSEE APPEALED BEFORE THE CIT(A) AND THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE OBSERVING AS UNDER : - 3, THE EFFECTIVE GRIEVANCE OF THE APPELLANT IS INTEREST CHARGED OF RS, 47,054/ - U/S.234C OF L.T. ACT. 196 1. THE APPELLANT FILED RETURN OF INCOME ON 21.10.2017 DISCLOSING TOTAL INCOME OF RS. 81.54,620/ - . THIS RETURN WAS PROCESSED BY CENTRALIZED PROCESSING CENTRE(CPC), BANGALORE ON 13.06.2018, IN WHICH THE PROCESSING U/S.143(1) OF THE L.T. ACT, 1961, HAS BEEN D ONE AT THE SAME TOTAL INCOME, HOWEVER, INTEREST U/S,234C OF L.T. ACT, 1961 OF RS, 47,054/ - HAS BEEN CHARGED. DURING THE COURSE OF APPEAL PROCEEDINGS, THE APPELLANT HAS STATED THAT IT HAS PAID ADVANCE TAX OF RS. 16.00.000/ - ON 15.12.2018. WHEREAS CPC HAS CO NSIDERED THAT THE ADVANCE TAX HAS BEEN PAID ON 19.12.2018. IT IS THE SUBMISSION OF THE APPELLANT THAT SINCE THE ADVANCE TAX HAS BEEN DEBITED TO HIS BANK ACCOUNT ON 15.12.2016, THE INTEREST U/S.234G OF I.T. ACT, 1961 IS NOT CHARGEABLE. I HAVE CAREFULLY CONS IDERED THE SUBMISSION OF THE APPELLANT. IT IS IMPORTANT TO NOTE HERE THAT CPC PROCESSES THE RETURNS OF INCOME WITHOUT HUMAN INTERVENTION. IT IS SEEN THAT THE SAID ADVANCE TAX OF RS. 16,00,000/ - HAS BEEN DEPOSITED IN GOVERNMENT ACCOUNT ON 19.12.2016 ITA NO. 215 /CTK/201 9 3 VIDE CH ALLAN NO.00006 HAVING BSR CODC:0320943. THESE DETAILS ARE REFLECTED IN FORM NO.26AS OF THE APPELLANT. SINCE THE ADVANCE TAX OF RS. 16,00,000/ - HAS BEEN DEPOSITED ON 19.12.2016, INTEREST U/S.234C OF I.T. ACT, 1961 OF RS. 47,054/ - HAS BEEN CORRECTLY CHARGED ON THE APPELLANT. IT IS A SETTLED PRINCIPLE THAT CHARGING OF INTEREST U/S.234C OF I.T. ACT, 1961 IS MANDATORY, COMPENSATORY AND CONSEQUENTIAL IN NATURE. ACCORDINGLY, DEMAND RAISED OF RS. 47,050/ - ON ACCOUNT OF LEVY OF INTEREST U/S.234C OF I.T. ACT, 1961 IS CONFIRMED AND THE GROUNDS OF APPEAL ARE DISMISSED. 3. FEELING FURTHER AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE INCOME TAX APPELLATE TRIBUNAL. 4. LD.AR SUBMITTED THAT THE ASSESSEE HAD PAID ADVANCE TAX OF RS.16 LAKHS ON 15.12 .2016 , WHICH HAS BEEN DEBITED FROM HIS BANK ACCOUNT ON 15.12.201 6 BUT THE CPC CONSIDERED IT ON 19.12.201 6 AND 26AS ALSO REFLECTING ON 19.12.201 6 . THE BANK COLLECTS TAX ON BEHALF OF THE GOVERNMENT AND IT SHOULD BE CONSIDERED TO BE PAID ON 15.12.201 6 . ACCORD INGLY, LD. AR SUBMITTED THAT THERE WAS NO TAX PAYABLE ON THE ASSESSEE FOR PAYMENT OF ADVANCE TAX. HENCE, THE INTEREST CHARGED U/S.234C OF THE ACT SHOULD BE STRUCK DOWN. 5. ON THE OTHER HAND, LD. DR RELIED ON THE ORDER OF LOWER AUTHORITIES AND SUBMITTED THA T THE TAX WAS COLLECTED BY THE INCOME TAX DEPARTMENT ON 19.12.201 6 , WHICH IS CLEAR FROM THE FORM NO.26AS SUBMITTED BY THE ASSESSEE BEFORE THE AUTHORITIES BELOW, THEREFORE, THE ASSESSEE IS LIABLE FOR INTEREST OF RS.47,050/ - , WHICH HAS RIGHTLY BEEN LEVIED BY BOTH THE AUTHORITIES BELOW. 6. AFTER HEARING BOTH THE SIDES AND PERUSING THE ENTIRE MATERIAL AVAILABLE ON RECORD, WE AT THE OUTSET, CONSIDERED THE ARGUMENTS OF THE ITA NO. 215 /CTK/201 9 4 LD. AR OF THE ASSESSEE THAT THE PAYMENT OF ADVANCE TAX HAS BEEN MADE ON 15.12.201 6 AND HOW IT IS REFLECTED ON 19.12.201 6 , WHICH IS BEST KNOWN TO THE REVENUE. ONCE THE ADVANCE TAX HAS BEEN DEBITED FROM THE ACCOUNTS OF THE ASSESSEE ON 15.12.201 6 , THEREFORE, IT WOULD BE DEEMED TO BE PAID OF ADVANCE TAX ON 15.12.201 6 . I T IS CLEAR FROM THE COPY OF TH E BANK PASS BOOK STATEMENTS OF PUNJAB & NATIONAL BANK BEARING ACCOUNT NO. 0553000100094041 PLACED IN THE FILE AT PAGES 23 & 24, THAT THE AMOUNT IN QUESTION HAS BEEN DEBITED ON 15.12.2016 VIDE CHEQUE NO. 7278. WE ALSO OBSERVE FROM THE ABOVE BANK PASS BOOK THA T THERE IS OPENING BALANCE AS ON 12.12.2016 AT RS.26,46.918.45 AND AFTER DEBITING RS.16,00,000/ - , THE BALANCE AMOUNT REMAINED AT RS. 9,46,918.45, WHICH PROVES THAT THE AMOUNT HAS BEEN PAID ON THE SAME DATE TO THE CBDT ACCOUNT. HENCE, THE ASSESSEE HAS DISCH ARGED ITS ONUS FOR PAYMENT OF ADVANCE TAX ON 15.12.201 6 OF RS.16 LAKHS , THEREFORE, THE ASSESSEE SHOULD NOT BE CHARGED INTEREST U/S.234C OF THE ACT. ACCORDINGLY, WE ALLOW THE GROUND RAISED BY THE ASSESSEE AND DIRECT THE AO TO DELETE THE INTEREST CHARGED U/ S.234C OF THE ACT. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/02 /20 20 . SD/ - ( C.M.GARG ) SD/ - (L.P.SAHU) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK; DATED 10/02 /20 20 PRAKASH KUMAR MISHRA, SR.P.S. ITA NO. 215 /CTK/201 9 5 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) ITAT CUTTACK BENCH, CUTTACK 1. / THE APPELLANT - SANDEEP DHAWAN, AT - PLOT NO.42,VIP COLONY, NAYAPALLI, IRC VILLAGE, BHUBANESWAR 2. / THE RESPONDENT - ITO, WARD - 3(5), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//