ITO, Jaipur V. LIC OF INDIA, Sikar

ITA 233/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99380 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 7 month(s) 9 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: 07-03-2013
• 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. 233/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 . INCOME TAX OFFICER, TDS-3, JAIPUR. CUKE VS. LIC OF INDIA, BRANCH OFFICE, SIKAR, JEEVAN JYOTI, BEHIND COLLECTORATE, SIKAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ TAN NO. JPRLO 1426 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE (A/D ON RECORD) 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. 233/JP/2013 A.Y. 2009-10. ITO VS. LIC OF INDIA, SIKAR. 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 1426 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 DEF AULT AND RAISED A TAX DEMAND OF RS. 41,27,250/- U/S 201(1) AND INTEREST O F RS. 10,16,640/- 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. 41,23,685/- WAS CREATED ON ACCOUNT OF SHORT DEPO SITION OF TDS. HOWEVER, THE SAME WAS DEPOSITED IN THE GOVT. ACCOUNT. IN SUPP ORT, THE LD. A/R ENCLOSED 3 ITA NO. 233/JP/2013 A.Y. 2009-10. ITO VS. LIC OF INDIA, SIKAR. THE PHOTOCOPIES OF THE CHALLANS OF TAX DEPOSIT TO T HE EXTENT OF RS. 41,18,202/-. THE CHALLAN OF RS. 3,632/- WAS NOT PRODUCED. IN RES PECT OF DEMAND OF RS. 1400/- ON ACCOUNT OF SHORT DEDUCTION OF TAX, IT WAS SUBMITTED THAT THE ENTIRE TAX WAS DEDUCTED IN THE ENTIRE FINANCIAL YEAR. THERE MAY BE SOME SHORT FALL IN ONE QUARTER WHICH WAS COMPENSATED IN THE OTHER QUARTER. B EFORE LD. CIT (A), THE LD. A/R FILED YEARLY EARNING RECORD OF THE THREE DEDUCT EES SHOWING THAT THE TAX DUE WAS DEDUCTED BY THE ASSESSEE. IN RESPECT OF TWO OTHER DEDUCTEES, IT WAS CLAIMED THAT THEY HAVE PAID THE DUE TAXES AND HENCE ASSESSE E SHOULD NOT BE TREATED IN DEFAULT IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN COCO COLA BEVERAGES PVT. LTD. THE LD. CIT (A) ALLOWED THE APPEAL OF THE ASSESSEE BY OBSERVING AS UNDER :- 2.3. I HAVE DULY CONSIDERED THE MATERIAL AVAILA BLE ON RECORD. ON THE PERUSAL OF THE CHALLANS OF DEPOSIT OF TDS FI LED BY LD. A/R, IT IS EVIDENT THAT APPELLANT HAS DEPOSITED TDS AMOUNTING T O TOTAL OF RS. 41,18,202/-. AO IS DIRECTED TO GIVE CREDIT OF THE S AME AFTER DUE VERIFICATION. AO IS ALSO DIRECTED TO VERIFY THE YEARLY EARNING RE CORD OF THE THREE DEDUCTEES BEARING PAN NO. AGMPS 9043B, AQ NPS 6411L AND AVUPBG 6873 D. IF THE DUE TAXES HAVE BEEN DEDU CTED IN THE FULL FINANCIAL YEAR, CREDIT SHOULD BE GIVEN FOR THE SAME. APPELLANT HAS NOT FILED DETAILS OF TAX PAYMENT BY OTHER TWO DEDUCT EES. HENCE, NO RELIEF CAN BE ALLOWED IN RESPECT OF THEIR TDS LIABIL ITY. 4. NOW THE REVENUE IS BEFORE US. 4 ITA NO. 233/JP/2013 A.Y. 2009-10. ITO VS. LIC OF INDIA, SIKAR. 5. WE HAVE HEARD LD. D/R AND PERUSED THE MATERIAL O N RECORD. NO ONE ATTENDED ON BEHALF OF THE ASSESSEE THOUGH THE NOTIC E WAS SENT THROUGH REGISTERED POST, THE A/D IS ON RECORD. THE ONLY LIM ITED ISSUE BEFORE US IS HOW THIS CHALLAN SHOULD BE GIVEN CREDIT OF IN THE HANDS OF T HE ASSESSEE AND WHETHER THE ACTION LIES WITH THE ASSESSEE OR WITH THE DEPARTMENT. IN ITS GROUNDS OF APPEAL, DEPARTMENT SUBMITTED THAT THE ASSESSEE SHOULD HAVE FILED A CORRECTION STATEMENT TO RECTIFY THE WRONG SECTION WHICH HAS BEEN QUOTED IN THE CHALLAN AND IN ABSENCE OF THAT THE CREDIT HAS NOT BEEN GIVEN TO THE ASSESS EE. IT SEEMS TO US THAT ONCE THE CHALLAN IS DEPOSITED WITH THE BANK, IT WOULD NOT BE POSSIBLE 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. THE ASSESSEE HAS SUBMITTED THE PHOTOCOP IES OF THE CHALLAN OF TAX DEPOSIT TO THE TUNE OF RS. 41,18,202/-. CHALLAN FOR RS. 3,632/- HAS NOT BEEN FILED BEFORE THE AO/CIT (A). IN RESPECT OF DEMAND OF RS. 1 400/- ON ACCOUNT OF SHORT DEDUCTION OF TAX, THE LD. A/R SUBMITTED THAT ENTIRE TAX WAS DEDUCTED IN THE ENTIRE FINANCIAL YEAR BUT HAS NOT FILED ANY SUPPORTING EVI DENCE IN THIS REGARD. IN THE LIGHT OF ABOVE DISCUSSION, WE ARE OF THE VIEW THE LD. CIT (A) WAS RIGHT IN DIRECTING THE AO TO ALLOW CREDIT FOR THE DEPOSIT OF TDS AMOUNT OF RS. 41,18,202/-. WE ALSO FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT (A) DI RECTING TO VERIFY THE YEARLY EARNING RECORD OF THE THREE DEDUCTEES BEARING PAN N O. AGMPS 9043B, AQNPS 5 ITA NO. 233/JP/2013 A.Y. 2009-10. ITO VS. LIC OF INDIA, SIKAR. 6411L AND AVUPBG 6873 D AND ALLOW CREDIT AFTER DUE V ERIFICATION OF TAX PAYMENT. WE CONFIRM THE ORDER OF LD. CIT (A). 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16.10.2015 . 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, BRANCH OFFICE SIKAR. 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. 233/JP/2013) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR