ITO, Jaipur V. LIC OF INDIA, Jaipur

ITA 232/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99381 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 06-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA
• 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 VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 232/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 . INCOME TAX OFFICER, TDS-2, JAIPUR. CUKE VS. LIC OF INDIA, 567, NEHRU PALACE, COMMERCIAL COMPLEX, TONK ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ TAN NO. JPRLO 1755 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 07.10.2015. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 16/10/2015. VKNS'K@ ORDER PER SHRI R.P. TOLANI, J.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT (A)-III, JAIPUR DATED 20.12.2012 FOR THE A.Y. 2009-10. THE G ROUND RAISED IN THE APPEAL IS AS UNDER :- THE LD. CIT (A) HAS ERRED IN NOT DIRECTING THE DEFA ULTER ASSESSEE FOR FILING CORRECTION STATEMENT DUE TO WHICH THE DEM AND IS STILL OUTSTANDING IN THE SYSTEM AND DIRECTING THE AO TO R EDUCE THE DEMAND ON PHYSICAL VERIFICATION OF CHALLAN WHICH THE AO CAN NOT DO. 2 ITA NO. 232/JP/2013 A.Y. 2009-10 ITO VS. LIC OF INDIA, JAIPUR. 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 RETURN IN FORM NO. 26Q FO R THE 4 TH QUARTER GIVING DETAILS OF TAX DEDUCTED AND DEPOSITED THROUGH VARIO US CHALLANS UNDER TAN : JPRL0 1755 F. WHILE ANALYZING THE RETURN ON THE BAS IS OF ENTRIES AND ON THE BASIS OF BANK CHALLANS, THE AO OBSERVED THAT THE ASSESSEE HAS COMMITTED DEFAULTS BY NON-PAYMENT /LOW DEDUCTION OF TDS AMOUNT. ACCORDING LY A SHOW CAUSE NOTICE UNDER SECTION 201(1A) OF THE IT ACT WAS ISSUED TO THE ASSESSEE TO FILE CORRECTION STATEMENT TO RECTIFY DATA ENTRY ERRORS WITHIN 15 DA YS OF RECEIPT OF THE SHOW CAUSE NOTICE. AFTER THE EXPIRY OF STIPULATED PERIO D OF FILING THE CORRECTION STATEMENTS THE AO NOTICED DEFAULTS ON THE PART OF THE ASSESSEE AS PER JUSTIFICATION REPORT ANNEXURE-A WHICH FORMED PART OF ASSESSMENT ORDER, AND ON THAT BASIS THE ASSESSEE WAS DECLARED ASSESSEE IN DE FAULT AND RAISED A TAX DEMAND OF RS. 54,09,760/- U/S 201(1) AND INTEREST O F RS. 13,61,110/- U/S 201(1A) OF THE IT ACT ON THE GROUND THAT THE ASSESSE E HAS NOT PAID THE TDS AMOUNT. 3. BEING AGGRIEVED, THE ASSESSEE FILED FIRST APPEAL BEFORE LD. CIT (APPEALS). BEFORE LD. CIT (A), THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE DEMAND OF RS. 54,07,800/- WAS CREATED ON ACCOUNT OF SHORT DEPO SITION OF TDS. DUE TO CORRECTION STATEMENTS FILED BY THE ASSESSEE, THE DE MAND HAS BEEN REDUCED TO 3 ITA NO. 232/JP/2013 A.Y. 2009-10 ITO VS. LIC OF INDIA, JAIPUR. NIL. IN RESPECT OF DEMAND OF RS. 1960/- ON ACCOUNT ON NON DEPOSITION OF TAX, IT WAS SUBMITTED THAT THE SAME WAS DEPOSITED VIDE CHALLA N NO. 6 ON 10.02.2009. BUT WHILE FILING THE CHALLAN, ASSESSEE MENTIONED THE WRONG TAN WHICH WAS ITS OLD TAN. ASSESSEE HAS ALREADY SUBMITTED AN AFFIDAVIT TO ITO TDS IN THIS REGARD. THEREFORE, IT WAS REQUESTED THAT THE AO BE DIRECTED T O MAKE REQUIRED CORRECTIONS AND PROVIDE CREDIT IN THE CORRECT TAN AND DROP THE DEMAND AGAINST THE ASSESSEE. THE LD. CIT (A) ALLOWED THE APPEAL OF THE ASSESSEE BY DIRECTING THE AO TO VERIFY THE CLAIM AND GIVE DUE CREDIT IF THE TAX DEDUCTED HAS BEEN DEPOSITED. THE LD. CIT (A) ALSO OBSERVED THAT ASSESSEE CANNOT BE PENALI ZED SIMPLY FOR MENTIONING THE WRONG TAN IN THE CHALLAN. 4. NOW THE REVENUE IS BEFORE US. 5. WE HAVE HEARD LD. D/R AND PERUSED THE MATERIAL O N RECORD. NO ONE ATTENDED ON BEHALF OF THE ASSESSEE. FIRSTLY, IT IS APPARENT FROM THE ORDER OF LD. CIT (A) THAT THE ASSESSEE HAS ALREADY FILED A CORREC TION STATEMENT AND THE DEMAND TO THE EXTENT OF RS. 54,07,800/- HAS ALREADY BEEN REDUCED TO NIL. TO THIS EXTENT, WE DO NOT UNDERSTAND WHAT IS THE GRIEVA NCE OF THE REVENUE. THEREFORE, THE ONLY LIMITED ISSUE BEFORE US IS HOW T HE CHALLAN OF RS. 1960/- SHOULD BE GIVEN CREDIT OF IN THE HANDS OF THE ASSES SEE AND WHETHER THE ACTION LIES WITH THE ASSESSEE OR WITH THE DEPARTMENT. IN IT S GROUNDS OF APPEAL, DEPARTMENT SUBMITTED THAT THE ASSESSEE SHOULD HAVE FILED A CORRECTION STATEMENT 4 ITA NO. 232/JP/2013 A.Y. 2009-10 ITO VS. LIC OF INDIA, JAIPUR. TO RECTIFY THE WRONG TAN WHICH HAS BEEN QUOTED IN TH E CHALLAN AND IN ABSENCE OF THAT THE CREDIT HAS NOT BEEN GIVEN TO THE ASSESSEE. IT SEEMS TO US THAT ONCE THE CHALLAN IS DEPOSITED WITH THE BANK, IT WOULD NOT BE P OSSIBLE FOR ASSESSEE TO RETRIEVE THE SAME AND MAKE ANY CORRECTION. HOWEVER, AS FAR AS THE TDS RETURN IS CONCERNED, IF THERE IS ANY MISTAKE, SAME CAN BE REC TIFIED BY FILING THE CORRECTION STATEMENT. IN THE LIGHT OF ABOVE DISCUSSION, WE HER EBY DIRECT THE REVENUE TO ALLOW THE DUE CREDIT OF SUCH TDS FOR RS. 1,960/- TO THE ASSESSEE AFTER VERIFICATION OF ORIGINAL CHALLAN. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16.10.20 15. SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/10/ 2015 DAS/ VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE ITO TDS-2, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT : LIC OF INDIA, 567, NEHRU PALACE, C OMMERCIAL COMPLEX, TONK ROAD, JAIPUR. 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. 232/JP/2013) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR