Punjab National Bank, Raibareli V. Jt. Commissioner of Income Tax (TDS), Bareilly

ITA 247/LKW/2014

• Counselvise Citation: 24723714 RSA 2014
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 01-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: ROHIT NANDAN SHUKLA
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 247/LKW/2014 ASSESSMENT YEAR: 2008 - 09 PUNJAB NATIONAL BANK RASOOLPUR BRANCH RAEBARELI V. JOINT CIT (TDS) BAREILLY PAN/TAN:LKNP05726A (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. ROHIT NANDAN SHUKLA, ADVOCATE RESPONDENT BY: SHRI. ALOK MITRA, D.R. DATE OF HEARING: 10 09 2014 DATE OF PRONOUNCEMENT: 14 10 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON VARIOUS GROUNDS WHICH ARE AS UNDER: - 1 . BECAUSE THE ORDER SUFFERS FROM MATERIAL IRREGULARITY OF LAW AS WELL AS OF FACTS. 2 . BECAUSE THE APPELLANT DID NOT RECEIVE ANY NOTICE FROM THE COMMISSIONER OF INCOME TAX (APPEALS), BAREILLY, HENCE THERE WAS SUFFICIENT REASONABLE CAUSE BECAUSE OF WHICH THE APPELLANT COULD NOT PRESENT ON THE DATE OF HEARING. 3 . BECAUSE THE COURT BELOW ERRED IN PASSING EX - PARTE ORDER, WITHOU T GIVING SUFFICIENT OPPORTUNITY. 4 . BECAUSE WHOLE OF THE TAX DEDUCTED AT SOURCE HAD BEEN DEPOSITED INTO THE CENTRAL GOVERNMENT ACCOUNT AND THE RETURNS OF E - TDS HAD BEEN FILED ACCORDINGLY. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : 5 . BECAUSE THERE IS NO SHORT DEDUCTION OF TAX. 6 . BECAUSE THE ORDER DATED 28. 03.2011 FOR THE F.Y. 2007 - 08 OF U/S 201(1)/201(1A) INCOME TAX ACT 196 PASSED BY JOINT COMMISSIONER OF INCOME TAX, BAREILLY, HAD BEEN PASSED WITHOUT GIVING SHOW - CAUSE NOTICE AND PROPER OPPORTUNITY TO EXPLAIN. 7 . BECAUSE THE DEMAND OF TDS FROM THE APPELLANT IS NOT MAINTAINABLE HENCE CHARGING OF INTEREST UNDER SECTION 201(1A) IS AGAINST THE LAW. 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT THE ASSESSING OFFICER HAS RAISED A DEMAND OF RS.1,92,770/ - ON ACCOUNT OF MISMATCH IN E - TDS STATEMENT SUBMITTED. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), BUT DID NOT FIND FAVOUR WITH HIM AND THE LD. CIT(A) HAS CONFIRMED THE ASSESSMENT ORDER RAISING THE AFORESAID DEMAND T HOUGH THE ASSESSEE HAS SUBMITTE D RECTIFICATION IN E - TDS ONLINE AND CONSEQUENT TO THE RECTIFICATION, NO DEFAULT WAS IDENTIFIED IN THE STATEMENT SUBMITTED BY THE ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE HAS ACCORDINGLY SUBMITTED THAT IN THE ABSENCE OF ANY DEMAND, THOUGH THIS APPEAL HAS BECOME INFRUCTUOUS, BUT THE ASSESSING OFFICER IS REQUIRED TO PASS A CONSEQUENTIAL ORDER CANCEL ING THE DEMAND AS RAISED BY HIM VIDE HIS ORDER DATED 28.3.2011. 3 . THE LD. D.R., ON THE OTHER HAND, HAS SUBMITTED THAT SINCE RECTIFICATION HAS BEEN CARRIED OUT BY T HE SYSTEM ON SUBMITTING RECTIFICATION ONLINE AND NO DEMAND IS FINALLY RAISED, NO PURPOSE WOULD BE SERVED IN RESTORING THE MATTER FOR A CONSEQUENTIAL ORDER. 4 . IN REBUTTAL, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT IF THE CONSEQUENTIAL ORDER IS NOT P ASSED, THE DEMAND AS RAISED BY THE ASSESSING OFFICER WOULD STAND AND THE DEPARTMENT MAY ENFORCE RECOVERY OF THE SAME. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : 5 . HAVING CAREFULLY EXAMINED THE DOCUMENTS IN THE LIGHT OF THE LD. COUNSEL FOR THE ASSESSEES CONTENTIONS, WE ARE OF THE VIEW THAT UNDISPUTED LY ON SUBMISSION OF RECTIFICATION IN E - TDS , THE DEMAND EARLIER RAISED HAS BEEN RECTIFIED AND REMOVED, BUT A CONSEQUENTIAL ORDER IS REQUIRED TO BE PASSED BY THE ASSESSING OFFICER, AS THE DEMAND HAS BEEN RAISED BY THE ASSESSING OFFICER VIDE ORDER DATED 28.3. 2011 . ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY THE RECTIFICATION STATEMENT AND TO PASS A CONSEQUENTIAL ORDER. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION PAGE. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14 TH OCTOBER, 2014 JJ: 1009 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )