Krishna Bhima Samruddi Local Area Bank Limited , Hyderabad V. Jt. Commissioner of Income Tax, TDS Range-2, Hyderabad

ITA 251/Hyd/2019

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0158 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2009-2010
• Appeal Filed On: 26-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEEJU GUPTA
• Assessee Lawyers: S RAMA RAO
• Keywords: Application of stay; TDS
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER I.T.A. NO. 251/HYD/2019 ASSESSMENT YEAR: 2009-10 KRISHNA BHIMA SAMRUDDHI LOCAL AREA BANK LIMITED, HYDERABAD [PAN: AABCK3666N] VS JOINT COMMISSIONER OF INCOME TAX (TDS), TDS RANGE-2, HYDERABAD (APPELLANT) (RESPONDENT) STAY APPLICATION NO. 99/HYD/2019 (ARISING OUT OF ITA NO. 251/HYD/2019) ASSESSMENT YEAR : 2009-10 KRISHNA BHIMA SAMRUDDHI LOCAL AREA BANK LIMITED, HYDERABAD [PAN: AABCK3666N] VS JOINT COMMISSIONER OF INCOME TAX (TDS), TDS RANGE-2, HYDERABAD (APPLICANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : SMT. NEEJU GUPTA, DR DATE OF HEARING : 27-03-2019 DATE OF PRONOUNCEMENT : 29-03-2019 O R D E R PER SMT. P. MADHAVI DEVI, J.M. : THIS IS ASSESSEES APPEAL FOR THE AY. 2009-10, AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, ITA. NO. 251/HYD/2019 SA NO. 99/HYD/2019 :- 2 -: HYDERABAD, CONFIRMING THE PENALTY LEVIED BY THE ASSE SSING OFFICER U/S. 271C OF THE INCOME TAX ACT [ACT]. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASS ESSEE SUBMITTED THAT THE ISSUE AS TO WHETHER THE ASSESSEE IS AN ASSESSEE IN DEFAULT U/S. 201(1) OF THE ACT WAS PENDING BEFORE THE CIT(A)-2 IN THE APPEAL FILED BY THE ASSESSEE AND IT IS SUBMITTED THAT THE ASSESSEE HAD BROUGHT THIS FACT TO THE NOTI CE OF THE CIT(A)-8 ABOUT THE PENDENCY OF THE APPEAL BUT THE CIT(A) HAS DISPOSED-OF THE APPEAL AGAINST THE ORDER U/S. 271 C OF THE ACT. HE SUBMITTED THAT UNLESS AND UNTIL ASSESSEE IS DEC LARED AS AN ASSESSEE IN DEFAULT, AND SUCH DEFAULT HAS NOT BEEN QUANTIFIED, THE PENALTY U/S. 271C OF THE ACT CANNOT BE LEVIED. 3. LD.DR, HOWEVER, SUBMITTED THAT BOTH ARE INDEPENDENT PROCEEDINGS AND CAN BE DISPOSED-OF INDEPENDENTLY. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND MATERIAL ON RECORD, WE FIND THAT NO DOUBT THE ORDER OF PENALTY U/ S. 271C IS TO BE PASSED WITHIN THE SPECIFIED PERIOD AND THEREFORE, THE ASSESSING OFFICER HAD TO PASS AN ORDER U/S. 271C OF THE ACT EVEN BEFORE AN APPEAL U/S. 201(1) AND 201(1A) OF THE ACT IS DISPOSED-OF BY THE CIT(A). HOWEVER, THERE IS NO SUCH TIME LIMIT FOR AN APPEAL TO BE DISPOSED-OF BY THE CIT(A). AS RIG HTLY POINTED OUT BY THE LD. COUNSEL, UNLESS AND UNTIL THE DEF AULT OF THE ASSESSEE U/S. 201(1) OF THE ACT HAS BEEN QUANTIFIED , THE PENALTY U/S. 271C OF THE ACT CANNOT BE LEVIED. THEREF ORE, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE BACK TO THE F ILE OF ITA. NO. 251/HYD/2019 SA NO. 99/HYD/2019 :- 3 -: CIT(A) WITH A DIRECTION TO DISPOSE-OF THE APPEAL ALONG WITH THE ASSESSEES APPEALS AGAINST THE ORDERS U/S. 201(1) AND 201(1A) OF THE ACT OR AFTER DISPOSAL OF SUCH APPEALS. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. 6. SINCE THE APPEAL OF THE ASSESSEE HAS BEEN DISPOSE D-OF VIDE ORDER EVEN DATED, THE STAY APPLICATION FILED BY TH E ASSESSEE HAS BECOME INFRUCTUOUS. ACCORDINGLY, THE SAM E IS REJECTED. 7. TO SUM-UP, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AND THE STAY APPLICATION IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH MARCH, 2019 SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMB ER HYDERABAD, DATED 29 TH MARCH, 2019 TNMM ITA. NO. 251/HYD/2019 SA NO. 99/HYD/2019 :- 4 -: COPY TO : 1. KRISHNA BHIMA SAMRUDDHI LOCAL AREA BANK LIMITED, 1-98-9/3/28, SILICON TOWERS, SILICON VALLEY, MADHAP UR, HYDERABAD. 2. THE JOINT COMMISSIONER OF INCOME TAX (TDS), TDS RANGE-2, HYDERABAD. 3. CIT(APPEALS)-8, HYDERABAD. 4. THE CIT-TDS, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.