The Merchangs Soudharda Sahakara Bank Niyamitha, Chitradurga V. ITO, Chitradurga

ITA 320/BANG/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8625 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 03-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Reasonable cause; TDS; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 201(1); 201; 64

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NOS. A.Y. APPELLANT(S) VS. RESPONDENT 320 TO 323/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, HOLALKERE ROAD BRANCH, BASAPPA COMPLEX, HOLALKERE ROAD CHITRADURGA 577501. PAN/TAN: BLRT 09707F THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. 324 TO 327/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, C.K. PURA BRANCH, C.K. PURA EXTENSION, CHITRADURGA 577501. PAN/TAN: BLRT 09712D THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. 328 TO 331/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, HEAD OFFICE, SANTHEPETE, CHITRADURGA 577501. PAN/TAN: BLRT 03381A THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. 332 TO 335/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, RMC YARD BRANCH, RMC YARD, CHITRADURGA 577501. PAN/TAN: BLRT 09714F THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. ITA NOS.320 TO 350/BANG/2016 PAGE 2 OF 5 336 TO 339/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, JCR EXTENSION BRANCH, 4 TH CROSS, JCR EXTENSION, CHITRADURGA 577501. PAN/TAN: BLRT 09711C THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. 340 TO 343/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, SJT BRANCH, KAVERI COMPLEX, 1 ST MAIN ROAD, VIDYANAGAR EXTENSION, CHITRADURGA 577501. PAN/TAN: BLRT 09715G THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. 344 TO 347/BANG/2016 2010-11 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, JOGIMATTI ROAD BRANCH, CHITRADURGA 577501. PAN/TAN: BLRT 09713E THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. 348 TO 350/BANG/2016 2011-12 TO 2013-14 THE MERCHANTS SOUHARDA SAHAKARA BANK NIYAMITHA, IUDP LAYOUT BRANCH, SUKUTHA NILAYA, 6 TH CROSS, IUDP LAYOUT, CHITRADURGA 577501. PAN/TAN: BLRT 09708G THE INCOME TAX OFFICER, TDS WARD, DAVANGERE. APPELLANT BY : SHRI SANDEEP C. C.A. RESPONDENT BY : SHRI M.K. BIJU, JT.CIT(ITAT-3) (DR) DATE OF HEARING : 25.01.2017 DATE OF PRONOUNCEMENT : 25.01.2017 ITA NOS.320 TO 350/BANG/2016 PAGE 3 OF 5 O R D E R PER BENCH THESE APPEALS ARE PREFERRED BY THE ASSESSEES AGAI NST THE ORDER OF CIT(APPEALS) INTER ALIA ON COMMON GROUNDS. FOR THE SAKE OF REFERENCE, THE GROUNDS OF APPEAL RAISED IN ITA NO.320/BANG/2016 AR E EXTRACTED HEREUNDER:- 1. THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), IN SO FAR IT IS PREJUDICIAL TO THE INTER ESTS OF THE APPELLANT, IS BAD AND ERRONEOUS IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THAT THE LEARNED COMMISSIONER ON INCOME TAX (AP PEALS) ERRED IN LAW AND ON FACTS IN NOT CONDONING THE DELA Y EVEN THOUGH THE APPELLANT HAD SUFFICIENT AND REASONABLE CAUSE F OR DELAY IN FILING THE APPEAL. 3. THAT THE LEARNED COMMISSIONER ON INCOME TAX (AP PEALS) ERRED IN LAW AND ON FACTS IN REJECTING THE CONDONAT ION OF DELAY ON THE GROUND THAT THE APPEAL WAS FILED MERE AFTER THO UGHT. 4. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) OUGHT TO HAVE DECIDED THE CASE ON MERITS AND OUGHT TO HAVE HELD THAT THE APPELLANT IS NOT LIABLE TO DEDUCT TAX AT S OURCE ON THE INTEREST PAID TO ITS MEMBERS AND ORDER U/S. 201 (1) AND 201(1A) OUGHT TO HAVE QUASHED. 5. THAT THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) OUGHT TO HAVE HELD THAT THE DEMAND U/S. 201(1) AND INTEREST U/S. 201(1A) IS NOT SUSTAINABLE IN LAW. EACH OF THE ABOVE GROUNDS IS WITHOUT PREJUDICE TO O NE ANOTHER AND THE APPELLANT CRAVES LEAVE OF THE HON'BLE INCOM E TAX APPELLATE TRIBUNAL, BANGALORE TO ADD, DELETE, AMEND OR OTHERWISE MODIFY ONE OR MORE OF THE ABOVE GROUNDS EITHER BEFO RE OR AT THE TIME OF HEARING OF THIS APPEAL. ITA NOS.320 TO 350/BANG/2016 PAGE 4 OF 5 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEES HAS INVITED OUR ATTENTION TO THE FACT THAT THE CIT(APPE ALS) HAS DISMISSED THE APPEALS BEING BARRED BY LIMITATION; WHEREAS THE DEL AY IN FILING OF THE APPEAL WAS 64 DAYS ONLY. HE FURTHER CONTENDED THAT BEFORE THE CIT(APPEALS), THE ASSESSEES EXPLAINED THE DELAY IN FILING OF THE APPE ALS, BUT INSTEAD OF TAKING A LENIENT VIEW, THE CIT(A) DISMISSED THE APPEALS OF THE ASSESSEES. THE LD. COUNSEL FURTHER CONTENDED THAT IN THE INTEREST OF J USTICE, THE ORDER OF CIT(APPEALS) MAY BE SET ASIDE AND MATTER BE RESTORE D TO HIS FILE. 3. ON MERITS, HE HAS CONTENDED THAT THE IMPUGNED IS SUE IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL AND THE JUDGME NT OF THE JURISDICTIONAL HIGH COURT IN FAVOUR OF THE ASSESSEES. 4. THE LD. DR DID NOT DISPUTE THESE FACTS. 5. HAVING CAREFULLY EXAMINED THE ORDERS OF LOWER AU THORITIES IN THE LIGHT OF RIVAL SUBMISSIONS, WE FIND THAT THE CIT(APPEALS) HAS DISMISSED THE APPEALS OF THE ASSESSEES ON ACCOUNT OF DELAY IN FIL ING OF THE APPEALS. WE HAVE CAREFULLY EXAMINED THE REASONS FOR DELAY IN FI LING OF THE APPEALS BEFORE THE CIT(APPEALS) AND BEING CONVINCED WITH TH E EXPLANATION, WE ARE OF THE VIEW THAT THE CIT(APPEALS) OUGHT TO HAVE CON DONED THE DELAY IN FILING OF THE APPEALS. WE ACCORDINGLY SET ASIDE THE ORDER OF CIT(APPEALS) AND CONDONE THE DELAY IN FILING OF THE APPEALS BEFORE T HE CIT(APPEALS). ACCORDINGLY, WE RESTORE THE MATTER TO THE FILE OF C IT(APPEALS) WITH A ITA NOS.320 TO 350/BANG/2016 PAGE 5 OF 5 DIRECTION TO READJUDICATE THE IMPUGNED ISSUES ON ME RIT, AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEES. 6. IN THE RESULT, THE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF JANUARY, 2017. SD/- SD/- ( INTURI RAMA RAO ) (SUNIL KUMAR YA DAV ) ACCOUNTANT MEMBER JUDIC IAL MEMBER BANGALORE, DATED, THE 25 TH JANUARY, 2017. /D S/ COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.