The Income Tax Officer (TDS), Bareilly V. Bharat Sanchar Nigam Ltd, Pilibhit

ITA 270/LKW/2014

• Counselvise Citation: 27023714 RSA 2014
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-09-2014
• Assessment Year: misc
• Appeal Filed On: 07-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALOK MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO S . 270 TO 273/LKW/2014 ASSESSMENT YEAR S : 2006 - 07, 2007 - 08 & 2008 - 09 THE INCOME TAX OFFIC ER (TDS) BAREILLY V. BHARAT SANCHAR NIGAM LTD. STATION ROAD PILIBHIT PANTAN:LKNB05462C (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. ALOK MISHRA, D.R. RESPONDENT BY: NONE DATE OF HEARING: 08 09 2014 DATE OF PRONOUNCEMENT: 29 0 9 2014 O R D E R PER SUNIL KUMAR YADAV: THESE APPEALS ARE PREFERRED BY THE REVENUE AGAINST THE CONSOLIDATED ORDER OF THE LD. CIT(A) , INTER ALIA, ON VARIOUS COMMON GROUNDS WHICH ARE AS UNDER: - 1 . THE LD. CIT (APPEAL), BAREILLY HAS ERRED IN FACTS AND LAW BY ACCEPTING NEW EVID ENCE FROM THE DEDUCTOR WITHOUT ALLOWING REASONABLE OPPORTUNITY TO THE AO IN TERMS OF RULE 46A (3) OF THE IT RULES, 1962. THE DEDUCTOR SUBMITTED BEFORE THE CIT (A) THAT HE HAS DEDUCTED AND PAID THE DUE TAX AND THAT SHORT DEDUCTION/ NON - PAYMENT IS DUE TO MI SMATCH. THIS FACT WAS NOT NEITHER PRODUCED BEFORE THE AO NOR IT WAS REFLECTED ON THE ITD SYSTEM WHEN THIS ORDER U/S 201(1)/201 (1A) WAS PASSED. THE CIT (A) HAS ERRONEOUSLY ACCEPTED THE CLAIM OF ASSESSEE AND DIRECTED THE AO TO VERIFY THE CLAIM BY CALLING FO R NECESSARY DOCUMENTS FOR REQUIRED VERIFICATION AND REVISE THE ORDER PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : ACCORDINGLY AND CHARGE INTEREST ON LATE DEPOSIT IF ANY. 2 . THE LD. CIT (A) HAS ERRED IN DIRECTING THE AO TO CALL FOR NECESSARY DOCUMENTS FOR REQUIRED VERIFICATION AND REVISE THE ORDER ACCORD INGLY. THE PROCESSING OF TDS STATEMENTS ARE FULLY CENTRALIZED AT CPC(TDS) VAISHALI GHAZIABAD AND THE AO HAS NO POWER TO REVISE THE ORDER. THE ONLY REMEDY FOR THE DEDUCTOR IS TO FILE CORRECTION STATEMENTS ON - LINE AND GET THE DEMAND REDUCED THROUGH CPC (TDS) . 3 . THE CIT (A) BEING A QUASI - JUDICIAL BODY HAS ERRED FURTHER IN DIRECTING THE AO(TDS) TO CARRY OUT RECTIFICATIONS WITHOUT UNDERSTANDING THE PROCESS OF RECTIFICATION/CORRECTIONS LAID DOWN BY CPC(TDS). NO PROOF HAS BEEN SUBMITTED BY THE DEDUCTOR BEFORE THE CI T(A) TO SHOW THAT THE NECESSARY CORRECTION STATEMENTS HAVE BEEN FILED WITH CPC(TDS). BEING A PERSON FROM THE DEPARTMENT, THE CIT(A) IS REQUIRED TO UNDERSTAND ACTUAL PROCESSES LAID DOWN BY THE DEPARTMENT AND WHETHER DIRECTIONS ISSUED BY HIM ARE EXECUTABLE O R NOT. 4 . BY DOING SO IN 1,2,3 ABOVE, THE CIT(A) HAS MECHANICALLY DISPOSED OFF THE APPEAL, WHILE NO IMPLEMENTATION OF HIS DIRECTIONS ARE POSSIBLE AT A.O. (TDS) END. IN CASE OF MISMATCH, THE REMEDY LIES IN FILING OF CORRECTION STATEMENT WHICH ARE AUTOMATICALLY PROCESSED BY THE CPC (TDS). TILL CORRECTION STATEMENT IS PROCESSED, THE AO(TDS) ORDER STANDS, AND CANNOT BE CANCELLED. 2 . ON PERUSAL OF RECORD, IT IS NOTICED THAT ON THE LAST DATE OF HEARING SHRI. V. P. SRIVASTAVA APPEARED ON BEHALF OF THE ASSESSEE AND ADJO URNMENT WAS SOUGHT. ACCORDINGLY THE MATTER WAS LISTED FOR HEARING FOR TODAY. SINCE THE ASSESSEE DID NOT APPEAR DESPITE HAVING KNOWLEDGE OF THE DATE OF HEARING, WE HAVE NO OPTION BUT TO PROCEED EX - PARTE. ACCORDINGLY THE REVENUE WAS HEARD. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : 3 . THE LD. D.R. HA S CONTENDED THAT THE LD. CIT(A) HAS SET ASIDE THE MATTER TO THE INCOME TAX OFFICER (TDS) WITH A DIRECTION TO CALL FOR NECESSARY DOCUMENTS FOR REQUIRED VERIFICATION AND REVISE THE ORDER ACCORDINGLY, BUT THE INCOME TAX OFFICER (TDS) IS NOT COMPETENT TO DO TH IS EXERCISE. THE LD. D.R. HAS FURTHER CONTENDED THAT IN THESE CASES, THE ASSESSEE HAS DEPOSITED DUE TAX AMOUNT BUT DUE TO MISMATCH IT WAS NOT CONFIRMED AND THEREFORE DEMAND WAS RAISED . I F THERE IS ANY MISMATCH , THE ASSESSEE IS COMPETENT PERSON TO FILE RE CTIFICATION ONLINE. SINCE THE RETURNS ARE FILED AND TDS ARE REMITTED ON LINE, IF THERE IS ANY MISMATCH IN DEPOSIT AND CONFIRMATION, THE ASSESSEE IS COMPETENT TO MAKE RECTIFICATION UNLESS IT IS CONFIRMED. THE INCOME TAX OFFICER (TDS) IS NOT THE CONCERNED PERSON WHO CAN MAKE RECTIFICATION OR CAN VERIFY FROM THE SYSTEM. THE LD. D.R. HAS FURTHER CONTENDED THAT IN THIS BACKGROUND, THE DIRECTIONS OF THE LD. CIT(A) CANNOT BE COMPLIED WITH BY THE INCOME TAX OFFICER (TDS). 4 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE REVENUES SUBMISSIONS AND FROM VERIFICATION FROM THE CIT (TDS), IT HAS BEEN BROUGHT TO OUR NOTICE THAT IF ANY ERROR IS CAUSED IN DEPOSITING THE TAX OR CREDIT OF TDS ON ACCOUNT OF MISMATCH OR FOR ANY OTHER REASON, RECTIFICATION CAN BE SUBMITTED ONLIN E BY THE ASSESSEE ONLY AND NOT BY ANY THIRD PERSON. NOWADAYS, THE RETURNS ARE BEING SUBMITTED ONLINE WITH THE CENTRAL AGENCIES OF THE D EPARTMENT AND IF ANY MISMATCH IS THERE DUE TO ANY REASON, THE CREDIT OF TDS IS NOT GIVEN TO THE ASSESSEE AND DEMANDS ARE BEING RAISED. NO DOUBT , FOR THE LAPSE ON THE PART OF THE DEPARTMENT, THE ASSESSEE SHOULD NOT SUFFER, BUT SIDE BY SIDE WHEN RECTIFICATIONS ARE TO BE MADE ONLINE WITH THE SYSTEM BY THE ASSESSEE ONLY , RECTIFICATION IS NOT POSSIBLE BY THE INCOME TAX OFFICER (TDS) OR THE ASSESSING OFFICER. UNDER THESE CIRCUMSTANCES, REMANDING THE MATTER BACK TO THE INCOME TAX OFFICER (TDS) OR THE ASSESSING OFFICER WOULD NOT SERVE THE PURPOSE. W E ARE , THEREFORE, OF THE VIEW THAT WHENEVER ANY DEMAND IS RAISED ON ACCOUNT OF PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : MIS MATCH OR ANY OTHER ERROR, THE ASSESSEE SHOULD SUBMIT RECTIFICATION ONLINE AND GET THE ACKNOWLEDGEMENT. EVEN THEN IF IT IS NOT DONE, T HE ASSESSEE SHOULD DO THE RECTIFICATION UNDER THE GUIDANCE OF THE DEPARTMENTAL OFFICER. THIS SYSTEM WAS GENERATED FOR THE BENEFIT AND CONVENIENCE OF THE ASSESSEE, BUT SOME TIME ON ACCOUNT OF MISMATCH, CREDIT OF TDS IS NOT BEING GIVEN TO THE ASSESSEE , BUT F OR THIS , THE ASSESSEE SHOULD SUBMIT NECESSARY RECTIFICATION ONLINE. IN THIS BACKDROP, WE ARE OF THE VIEW THAT IN THE INS TANT CASE, IT IS NOT CLEAR WHETHER THE ASSESSEE HAS SUBMITTED RECTIFICATION ONLINE OR HAS DIRECTLY APPROACHED THE LD. CIT(A). UNDER THESE CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION THAT LET THE MATTER BE SENT BACK TO THE LD. CIT(A) WITH A DIRECTION T HAT ASSESSEE WILL SUBMIT A RECTIFICATION ONLINE AFTER DOING NECESSARY CORRECTIONS AND EVEN THEN IF MISMATCH IS NOT RECTIFIED AND CREDIT IS NOT GIVEN, THE LD. CIT(A) WOULD GET IT DONE UNDER HIS SUPERVISION, HAVING VERIFIED THE RECORDS FROM THE ASSESSEE WITH REGARD TO DEDUCTION OF TDS. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE LD. CIT(A) WITH A DIRECTION TO GET IT RECTIFIED UNDER HIS SUPERVISION IN TERMS INDICATED ABOVE . 5 . IN THE RESULT, APPEALS OF THE REVEN UE ARE ALLOWED 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: 29 TH SEPTEMBER , 2014 JJ: 0909 PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 5 - : COP Y 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/ )