Oriental Bank of Commerce, Ghaziabad V. ITO, Ghaziabad

ITA 2228/DEL/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3609 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 13-07-2011
• Assessment Year: misc
• Appeal Filed On: 04-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MONGA SENIOR
• Assessee Lawyers: U S BHARGAVA
• Keywords: TDS; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH I : NEW DELHI) BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.2228/DEL./2011 (ASSESSMENT YEAR : 2005-06) CHIEF/SENIOR MANAGER, VS. ITO, (TDS & SURVEY) ORIENTAL BANK OF COMMERCE, GHAZIABAD. C/O U.S. BHARGAVA, ADVOCATE 17, RAM NAGAR, GHAZIABAD 201 001 (UTTAR PRADESH). (PAN : AAACO0191M) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI U.S. BHARGAVA, ADVOCATE REVENUE BY : SHRI A.K. MONGA, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF THE ORDER OF THE CIT (APPEALS), GHAZIABAD DATED 01.02.2011 FOR THE ASSES SMENT YEAR 2005-06. THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE READ AS UNDER :- 1. THAT THE LD. LOWER AUTHORITIES ERRED IN CHARGIN G THE INTEREST U/S 201/201(1A) OF THE I.T. ACT, 1961, OF RS.11,748/- AS WELL AS SHORT CHARGE OF TDS AMOUNT OF RS.35,628/ - IN THE CASE OF GHAZIABAD DEVELOPMENT AUTHORITIES. 2. THAT THE ASSESSEES CASE FALLS U/S 194A(3)(III) OF THE I.T. ACT, 1961. ITA NO.2228/DEL./2011 2 3. THAT THE INTEREST SO CHARGED AND DEPOSITED OF SH ORT CHARGE OF TDS IS EXCESSIVE, ARBITRARY AND UNCALLED FOR. 2. THE ASSESSEE IS A BRANCH OF NATIONALIZED BANK. A SURVEY CONDUCTED ON 02.02.2008 AT THE BRANCH OF THE ASSESSEE. THE DISC REPANCY IN THE AMOUNT OF TAX DEDUCTION AT SOURCE NOTED IN RESPECT OF INTERES T PAID TO GHAZIABAD DEVELOPMENT AUTHORITY AND GANGA JAL PARIYOJNA, GHAZ IABAD. THE ASSESSEE CLAIMS THAT GHAZIABAD DEVELOPMENT AUTHORITY IS A NO TIFIED INSTITUTION UNDER SECTION 194A(3)(III)(F), THEREFORE, THE PROVISIONS OF SUB-SECTION (1) OF SECTION 194A ARE NOT APPLICABLE. HE PLEADED THAT HIS CASE IS COVERED BY ENTRY NO.39 WHERE ANY CORPORATION ESTABLISHED BY A CENTRAL, STA TE OR PROVINCIAL ACT IS A NOTIFIED INSTITUTION WHERE THE PROVISIONS OF SECTIO N 194(1) ARE NOT APPLICABLE. HE HAS FILED A COPY OF THE LIST WHERE ENTRY NO.39 S TATES ABOUT ANY CORPORATION ESTABLISHED BY A CENTRAL, STATE OR PROVINCIAL ACT. HE ALSO SUBMITTED A COPY OF UTTAR PRADESH URBAN PLANNING AND DEVELOPMENT ACT, 1 993 WHICH PROVIDES FOR THE DEVELOPMENT OF CERTAIN AREAS OF UTTAR PRADESH, ACCORDING TO PLANT AND FOR MATTERS ANCILLARY THERETO AND IT WAS ALSO PLEADED T HAT GHAZIABAD DEVELOPMENT AUTHORITY HAS BEEN ESTABLISHED UNDER THE UTTAR PRAD ESH URBAN PLANNING AND DEVELOPMENT ACT, 1993, THEREFORE, IT IS A CORPORATI ON ESTABLISHED BY A STATE ACT WHICH IS COVERED BY ENTRY NO.39. 3. ON THE OTHER HAND, THE LEARNED DR RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. ITA NO.2228/DEL./2011 3 4. WE HAVE HEARD BOTH THE SIDES AND AFTER HEARING, WE HOLD THAT GHAZIABAD DEVELOPMENT AUTHORITY AND GANGA JAL PANI PARIYOJNA ARE IN EXEMPTED CATEGORY WHERE THE PROVISIONS OF SECTION 194(1) ARE NOT APPLICABLE. IN VIEW OF THIS MATTER, WE SET ASIDE THE ORDERS OF THE AUTHORI TIES BELOW AND ALLOW THE ASSESSEES APPEAL. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 15 TH DAY OF JULY, 2011. SD/- SD/- (DIVA SINGH) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 15 TH DAY OF JULY, 2011 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), GHAZIABAD. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.