ITO, Jaipur V. LIC OF INDIA, Jaipur

ITA 222/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99347 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 05-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA SINGH
• Section: 201(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA-@ ITA NO. 222 &223/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 & 2009-10 . THE INCOME TAX OFFICER, (TDS-3), JAIPUR. CUKE VS. LIC OF INDIA, SHARMASANJAY BADI, CHOMU. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR /TAN NO. JPRLO 1397 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA SINGH (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SANJAY KUMAR SHARMA (AO OF LIC BRANCH, CHOMU) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01.10.2015. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 9/10/2015. VKNS'K@ ORDER PER BENCH : THESE ARE TWO APPEALS FILED BY THE REVENUE AGAINST A COMMON ORDER OF LD. CIT (A)-III, JAIPUR DATED 7 TH DECEMBER, 2012 FOR THE A.Y. 2008-09 & 2009-10. THE COMMON SOLE GROUND RAISED IN THE APPEAL IS AS UN DER :- THE CIT (A) HAS GROSSLY ERRED BY DIRECTING THE AO T O DELETE THE DEMAND RAISED U/S 201(1)/201(1A) OF THE I.T. ACT AND ALLOW CREDIT OF TDS. IN THIS CASE, CREDIT OF TDS SHOULD NOT BE GIVEN AS THE ASSESSEE HAD WRONGLY DEPOSITED THE TDS AMOUNT BY MENTIONING PA N INSTEAD 2 ITA NOS. 222 & 223/JP/2013 ITO TDS VS. LIC OF INDIA, CHOMU. OF TAN AND THE ASSESSEE HAS ALSO WRONGLY MENTIONED M INOR HEAD 100 (ADVANCE TAX) INSTEAD OF MINOR HEAD-200 (TDS) 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE LI FE INSURANCE CORPORATION OF INDIA, IS ENGAGED IN THE INSURANCE BUSINESS. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS FILED TDS RETURNS IN FORM NO. 26Q F OR THE 1 ST AND 2 ND QUARTERS FOR A.Y. 2008-09 AND FOR THE 1 ST AND 2 ND QUARTERS FOR A.Y. 2009-10 GIVING DETAILS OF TAX DEDUCTED AND DEPOSITED THROUGH VARIOUS CHALL ANS UNDER TAN : JPRL0 1397E. WHILE ANALYZING THE RETURN ON THE BASIS OF E NTRIES AND ON THE BASIS OF BANK CHALLANS, THE AO OBSERVED THAT THE ASSESSEE HA S COMMITTED DEFAULTS BY NON-PAYMENT OF TDS AMOUNT DEDUCTED AND ALSO MENTION ING WRONG SECTION IN THE CHALLAN. ACCORDINGLY A SHOW CAUSE NOTICE UNDER SECTI ON 201(1A) OF THE IT ACT WAS ISSUED TO THE ASSESSEE TO FILE CORRECTION STATE MENT TO RECTIFY DATA ENTRY ERRORS WITHIN 15 DAYS OF RECEIPT OF THE SHOW CAUSE NO TICE. AFTER THE EXPIRY OF STIPULATED PERIOD OF FILING THE CORRECTION STATEME NTS THE AO NOTICED DEFAULTS ON THE PART OF THE ASSESSEE AS PER JUSTIFICATION REPOR T ANNEXURE-A WHICH FORMED PART OF ASSESSMENT ORDER, AND ON THAT BASIS THE ASSESSEE WAS DECLARED ASSESSEE IN DEFAULT AND RAISED A TAX DEMAND OF RS. 13,56,290/- U/S 201(1) AND INTEREST OF RS. 6,10,140/- U/S 201(1A) FOR A.Y. 2008-09 AND RS. 8,50,250/- U/S 201(1) AND INTEREST OF RS. 2,87,320/- U/S 201(1A) OF THE IT ACT FOR A.Y. 2009-10 ON THE GROUND THAT THE ASSESSEE HAS NOT PAID THE TDS AMOUNT . 3 ITA NOS. 222 & 223/JP/2013 ITO TDS VS. LIC OF INDIA, CHOMU. 3. BEING AGGRIEVED, THE ASSESSEE FILED FIRST APPEAL BEFORE LD. CIT (APPEALS) WHO HAS SET ASIDE THE ORDER OF THE AO AND DIRECTED T O GIVE CREDIT OF TAXES PAID BY THE ASSESSEE AFTER VERIFYING THE TAX PAYMENT. TH E RELEVANT PARA 3.3 OF THE ORDER OF THE LD. CIT (A) SETTING THE ORDER OF AO IS AS UNDER :- 3.3. I HAVE DULY CONSIDERED THE SUBMISSION OF THE LD. A/R AND THE MATERIAL AVAILABLE ON RECORDS. ON THE PERUSAL OF TH E COPIES OF CHALLANS FILED BY THE APPELLANT, IT IS NOTICED THAT THE APPELLANT HAS USED WRONG CHALLANS FOR PAYMENT OF TAX. HOWEVER, HE C AN NOT BE PENALIZED FOR THE SAME AND DEMAND CAN NOT BE RAISED U/S 201(1)/201(1A) OF THE ACT. AO IS DIRECTED TO VERIFY THE TAX PAYMENTS AND GIVE CREDIT TO THE TAXES PAID BY ASSESSEE. SIMI LARLY, HE SHOULD ALSO VERIFY THE FORM NO. 16 PRODUCED BY THE ASSESSE E AND GIVE CREDIT TO THE TAX DEDUCTED AT SOURCE. 4. NOW THE REVENUE IS BEFORE US. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AFTER CONSIDERING THE ORDER OF THE LD. CIT (A), WE FIND NO INFIRMITY WITH THE ORDER OF LD. CIT (A). HOWEVER, TO FACILITATE RECT IFICATION OF THE ABOVE MISTAKES, THE ASSESSEE IS DIRECTED TO FURNISH A DETAILED CORR ECTION STATEMENT TO THE AO. MERELY BECAUSE OF CLERICAL MISTAKE IN MENTIONING TH E PAN NO. INSTEAD OF TAN NO., ASSESSEE CANNOT BE DENIED CREDIT OF TDS. THE AO IS DIRECTED TO RE-COMPUTE 4 ITA NOS. 222 & 223/JP/2013 ITO TDS VS. LIC OF INDIA, CHOMU. THE TAX DEMAND AND INTEREST AFTER VERIFYING TDS DEPO SITED WITH THE ORIGINAL CHALLANS AND CORRECTION STATEMENT, AND ALLOW RELIEF TO THE ASSESSEE AS PER LAW. 5. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 9.10.2015. SD/- SD/- VH-VKJ-EHUK YFYR DQEKJ (T.R. MEENA) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 9/10/ 2015 DAS/ VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- THE ITO (TDS-3), JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT-LIC OF INDIA, SHARMASANJAYBADI, CHOMU . 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 222 & 223/JP/2013) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR. 5 ITA NOS. 222 & 223/JP/2013 ITO TDS VS. LIC OF INDIA, CHOMU.