Deccan Grameena Bank, Hyd, Hyderabad V. ITO, Ward-9(4), Hyderabad, Hyderabad

ITA 285/HYD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6012 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-02-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 20-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K MYTHILI RANI
• Assessee Lawyers: T UMAKANTH
• Keywords: Opportunity of being heard
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.285/HYD/2015 ASSESSMENT YEAR 2010-2011 M/S. DECCAN GRAMEENA BANK (PRESENTLY TELANGANA GRAMEENA BANK), HYDERABAD. PAN AAAAD3893M VS. THE INCOME TAX OFFICER WARD-9(4) HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. T. UMAKANTH FOR REVENUE : SMT. K. MYTHILI RANI DATE OF HEARING : 15.02.2016 DATE OF PRONOUNCEMENT : 24 .02.2016 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y. 2010- 2011. IN THIS APPEAL, ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD. CIT UNDER SECTION 263 OF THE I.T. ACT, BY W HICH THE CIT HAS PROPOSED TO REVISED THE ASSESSMENT FOR A.Y. 2010- 2011 AND ARRIVE AT THE QUANTUM OF INTEREST ON DEPOS ITS ON WHICH TDS WAS NOT DEDUCTED AS PER THE PROVISIONS OF SECTION 194A OF THE ACT. 2 ITA.NO.285/HYD/2015 M/S. DECCAN GRAMEENA BANK, HYDERABAD. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, MR. T. UMAKANTH, SUBMITTED THAT THE CIT H AD INITIATED 263 PROCEEDINGS BY ISSUING A SHOW CAUSE N OTICE DATED 23.12.2014 AND HAS ASKED FOR VARIOUS DETAILS RELATING TO THE TAX DEDUCTED AT SOURCE ON INTEREST PAID ON DEPOSITS. THE ASSESSEE VIDE LETTER DATED 28.12.2015 SUBMITTED TO CIT THAT ALL THE BRANCHES ARE SUBJECT TO TAX AUDIT ALONG WITH STATUTORY AUDIT AND THE PARTICULAR S OF TDS ARE VERIFIED AND QUALIFY THE REPORT IN CASE THE RE IS ANY DEFAULT IN DEDUCTING TDS AMOUNT OR PAYMENT OF THE S AME TO THE I.T. DEPARTMENT. IT WAS SUBMITTED THAT THE T DS PARTICULARS OF 15 BRANCHES (10 BRANCHES IN TWIN CIT IES AND R.R. DISTRICT AND 5 BRANCHES IN OTHER DISTRICTS) SH OWING THE INTEREST PAID ON TDRS AMOUNTING TO RS.10,000 AN D TDS DEDUCTED AND PAID ON THOSE PAYEES WHO WERE NOT GIVEN FORM 15G/15H AND PRAYED THAT THE PROPOSAL TO REVISE THE ASSESSMENT ORDER MAY KINDLY BE DROPPED. SINCE THE ASSESSEE COULD NOT FILE ALL THE DETAILS BEFORE THE CIT, THE REVISION ORDER WAS PASSED SETTING ASIDE THE ASSESSMENT ORDER WITH A DIRECTION TO RE-DO THE ASSE SSMENT AS PER THE DIRECTIONS OF THE CIT. AGGRIEVED, ASSESS EE PREFERRED APPEAL BEFORE US. 3. THE LD. COUNSEL FOR THE ASSESSEE, MR. T. UMAKANTH, HAS FILED A PAPER BOOK GIVING BRANCH-WISE STATEMENTS OF TDS PARTICULARS FOR THE A.Y. 2010-201 1 AND SUBMITTED THAT THESE COULD NOT BE FILED BEFORE THE CIT DUE TO THE REASONS MENTIONED IN THE ASSESSEES LETTER T O THE 3 ITA.NO.285/HYD/2015 M/S. DECCAN GRAMEENA BANK, HYDERABAD. CIT. HE SUBMITTED THAT THE CIT, HAS DIRECTED THE A .O. TO RE-DO THE ASSESSMENT AND THEREFORE, PRAYED THAT AN OPPORTUNITY MAY BE AFFORDED TO THE ASSESSEE FOR REPRESENTATION BEFORE THE LD. CIT. THUS, HE PRAYED FOR REMAND OF THE MATTER TO THE FILE OF THE CIT. 4. THE LD. D.R, ON THE OTHER HAND, HAS RELIED UPON THE ORDER OF THE LD. CIT. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE DIRECTION OF T HE LD. CIT TO RE-DO THE ASSESSMENT IS DUE TO NON-SUBMISSIO N OF THE REQUISITE DETAILS BY THE ASSESSEE BEFORE HIM. U NDER SECTION 263 OF THE ACT, CIT HAS WIDE POWERS BUT DOE S NOT HAVE UNFETTERED DISCRETION TO REVISE THE ASSESSMENT ORDER AND THE CONDITION NECESSARY FOR INVOKING THE POWER MUST EXIST. THE CIT CAN COME TO THE CONCLUSION OF THE ASSESSMENT ORDER TO BE ERRONEOUS IF THE A.O. HAS NO T MADE NECESSARY ENQUIRIES BEFORE COMPLETING THE ASSESSMENT BUT TO COME TO THE CONCLUSION THAT THE ASSESSMENT ORDER IS ALSO PREJUDICIAL TO THE INTERES TS OF THE REVENUE, HE HAS TO GO THROUGH THE RELEVANT MATERIAL . BUT SINCE THE ASSESSEE DID NOT PRODUCE THE REQUIRED DET AILS, THE CIT PROCEEDED TO REVISE THE ASSESSMENT ORDER BY REMANDING IT TO THE FILE OF THE A.O. NOW THAT THE D ETAILS ARE FILED BEFORE US, WE DEEM IT FIT AND PROPER TO A DMIT THE SAME AND REMIT THE ISSUE TO THE FILE OF THE LD. CIT WITH A DIRECTION TO RE-LOOK INTO THE MATTER IN THE LIGHT O F PAPER 4 ITA.NO.285/HYD/2015 M/S. DECCAN GRAMEENA BANK, HYDERABAD. BOOK FILED BY THE ASSESSEE. NEEDLESS TO SAY THAT AS SESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.02.2016. SD/- SD/- (S. RIFAUR RAHMAN) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 24 TH FEBRUARY, 2016 VBP/- COPY TO : 1. M/S. DECCAN GRAMEENA BANK (PRESENTLY TELANGANA GRAMEENA BANK), HYDERABAD. C/O. M/S. MURTHY & KANTH, CHARTERED ACCOUNTANTS, FLAT NO.113, SOVEREIGN SHELTERS, LAKADIKAPUL, HYDERABAD 004. 2. THE INCOME TAX OFFICER, WARD - 9(4), HYDERABAD. 3. CIT - 7 , HYDERABAD. 4. ADDL. CIT, RANGE - 9, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6 . GUARD FILE