Shantinath Baidyanath De, Surat V. ITO Ward 3(1)(3), Surat, Surat

ITA 26/SRT/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0881 (ITAT-SURAT)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 01-04-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ANUPAMA SINGLA
• Assessee Lawyers: SURESH K KABRA
• Keywords: TDS; Set aside
• Section: 205

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM ./ITA NO.26/SRT/2021 ( [ [ / ASSESSMENT YEAR: (2017-18) (VIRTUAL COURT HEARING) SHANTINATH BAIDYANATH DE, ROOM NO.83, FIRST FLOR RADHEY NAGAR SOCIETY, ICCHANATH ROAD, NEAR SVNIT, SURAT 395002. V S. THE INCOME TAX OFFICER, WARD-3(1)(3), SURAT. ./ ./ PAN/GIR NO.: ADIPD 9209 M (ASSESSEE) (RESPONDENT) ASSESSEE BY : SHRI SURESH K KABRA - CA RESPONDENT BY : MRS. ANUPAMA SINGLA SR.DR / DATE OF HEARING : 24/06/2021 /DATE OF PRONOUNCEMENT : 13/07/2021 / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: CAPTIONED APPEAL FILED BY THE ASSESSEE PERTAINING TO A.Y.2017-18 IS DIRECTED AGAINST THE ORDER PASSED BY THE LD.COMMISSIONER OF INCOME TAX(APPEALS), SURAT-3, [LD.CIT(A)] DATED 24.03.2021 WHICH IN TURN ARISES OUT OF ASSESSMENT ORDER PASSED BY THE LD.ASSESSING OFFICER DATED 18.06.2018. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IN THE PRESENT APPEAL IS THAT EMPLOYER HAD DEDUCTED TDS FROM SALARY TO THE TUNE OF RS.39,510/- BUT THE SAME HAS NOT BEEN DEPOSITED IN THE GOVERNMENT ACCOUNT. THEREFORE, REVENUE HAS RAISED A DEMAND ON THE ASSESSEE TO THE TUNE OF RS.50,590/- (INCLUDING INTEREST). SHRI SURESH K. KABRA, PRAYED TO THE BENCH THAT EITHER THE DEMAND OF RS.50,590/- MAY BE PAGE | 2 ITA NO.26/SRT/2021 FOR A.Y. 2017-18 SHRI SHANTINATH BAIDYANATH DE DELETED OR CREDIT FOR TDS RS.50,590/- (INCLUDING INTEREST) WHICH WAS DEDUCTED BY THE EMPLOYER MAY BE ALLOWED. 3. ON THE OTHER HAND, THE LEARNED DR FOR THE REVENUE SUBMITTED THAT ASSESSEE DID NOT APPEAR BEFORE THE LEARNED CIT(A) DURING THE APPELLATE PROCEEDINGS. THEREFORE, MATTER MAY BE REMITTED BACK TO THE FILE OF THE LEARNED CIT(A) WITH THE DIRECTION TO EXAMINE THE ASSESSEES FACTS AND ALLOW THE CREDIT IN ACCORDANCE WITH LAW. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT ASSESSEE IS AN EMPLOYEE OF ABG SHIPYARD LTD. THE SAID EMPLOYER COMPANY HAS GONE BANKRUPT AND THEREFORE DID NOT DEPOSIT THE TDS DEDUCTED TO THE TUNE OF RS.39,510/-. LATER ON, THE REVENUE HAS RAISED THE DEMAND ON ASSESSEE TO THE TUNE OF RS.52,000/- (INCLUDING INTEREST). AS PER THE LEARNED COUNSEL, THE TDS OF RS.39,510/- HAS BEEN DEDUCTED FROM THE SALARY OF THE EMPLOYEE BUT THE SAME HAS NOT BEEN REMITTED BACK TO THE ACCOUNT OF CENTRAL GOVERNMENT BY THE EMPLOYER. THEREFORE, THERE IS AN OUTSTANDING DEMAND ON THE EMPLOYEE TO THE TUNE OF RS.52,000/- (INCLUDING INTEREST). WE NOTE THAT ASSESSEE HAS NOT EXPLAINED THESE FACTS BEFORE THE LEARNED CIT(A). WE MAKE IT CLEAR THAT IF TDS HAS ACTUALLY BEEN DEDUCTED, THEN ASSESSEE (DEDUCTEE) CANNOT BE CALLED UPON TO PAY TAX IN TERMS OF PROVISIONS OF SECTION 205 OF THE INCOME TAX ACT. THEREFORE, WE DIRECT THE ASSESSEE TO PRODUCE BEFORE THE LEARNED CIT(A) THE SALARY SLIP, COPY OF INCOME TAX RETURN AND THE PROOF THAT THE TDS HAS BEEN DEDUCTED BY THE EMPLOYER COMPANY BUT NOT DEPOSITED TO THE ACCOUNT OF THE CENTRAL GOVERNMENT. THEREFORE, WE SET ASIDE THE ORDER OF THE LEARNED CIT(A) AND REMIT THE ISSUE BACK TO THE FILE OF THE LEARNED CIT(A) WITH THE DIRECTION TO EXAMINE THE SALARY SLIP, AMOUNT DEDUCTED AS TDS FROM THE SALARY BUT NOT DEPOSITED TO THE GOVERNMENT ACCOUNT AND EXAMINE THE INCOME TAX RETURN FILED BY THE ASSESSEE AND THEREAFTER CREDIT FOR TDS PAGE | 3 ITA NO.26/SRT/2021 FOR A.Y. 2017-18 SHRI SHANTINATH BAIDYANATH DE MAY BE ALLOWED TO THE ASSESSEE IN ACCORDANCE WITH LAW. STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS TREATED TO BE ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED ON 13/07/2021 BY PLACING RESULT ON NOTICE BOARD. SD/- SD/- S (PAWAN SINGH) (DR. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER TRUE COPY SURAT / / DATE: 13/07/2021 / SKS COPY OF THE ORDER FORWARDED TO 1. THE ASSESSEE 2. THE RESPONDENT 3. THE CIT(A) 4. PR.CIT 5. DR/AR, ITAT, SURAT 6. GUARD FILE BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR/SR. PS/PS ITAT, SURAT