The Surat Peoples Co- Operative Bank Ltd., Surat V. The ACIT, Circle-4, Surat

ITA 3375/AHD/2014

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 4076 (ITAT-SURAT)
• Duration Of Justice: 6 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 16-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ANUPAMA SINGLA
• Keywords: TDS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, HON'BLE JUDICIAL MEMBER AND DR.SHRI ARJUN LAL SAINI, HON'BLE ACCOUNTANT MEMBER (VIRTUAL HEARING) . . ./ I.T.A NO.3375/AHD/2014 [ [ / ASSESSMENT YEAR: 2009-10 THE SURAT PEOPLES CO - OPERATIVE BANK LIMITED, VASHUDHARA BHAVAN, TIMALIYAWAD, NANPURA, SURAT -395 001. [PAN: AAAAT 2885 P] VS . THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-4, SURAT. / APPELLANT /RESPONDENT [ /ASSESSEE BY SHRI KAMLESH BHATT CA /REVENUE BY MRS. ANUPAMA SINGLA - SR.DR / DATE OF HEARING: 12 . 0 2 .20 2 1 /PRONOUNCEMENT ON: 12 . 0 2 .202 1 /O R D E R PER PAWAN SINGH, JUDICIAL MEMEBER: 1. THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD.COMMISSIONER OF INCOME TAX(APPEALS)-4, SURAT DATED 15.10.2015 FOR ASSESSMENT YEAR (AY) 2009-10 WHICH IN TURN ARISES AGAINST PENALTY LEVIED UNDER SECTION 271C OF THE ACT. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THAT YOUR APPELLANT VIOLATED THE PROVISIONS OF SE. 194 J OF THE INCOME TAX ACT AND ACCORDINGLY CONFIRMING THE LEVY OF THE PENALTY OF RS.4,01,558 U/S.271 C OF THE INCOME TAX ACT, 1961 AND HENCE YOUR APPELLANT PRAYS THAT THE PENALTY SO LEVIED AND CONFIRMED BE DELETED. 2. SUCH OTHER RELIEF(S) AS THE APPELLANT MAY BE LAWFULLY ENTITLED TO. THE SURAT PEOPLES CO-OPERATIVE BANK LTD., VS. ACIT, CIRCLE-4, SURAT,/ ITA NO.3375/AHD/2014 FOR A.Y. 2009-10 2 3. THE APPELLANT CRAVES TO ADD, TO ALTER, TO AMEND OR TO MODIFY ALL ANY OF GROUNDS OF APPEAL. 2. AT THE OUTSET OF HEARING THE LEARNED AUTHORISED REPRESENTATIVE (AR) OF THE ASSESSEE SUBMITS THAT ADDITION/DISALLOWANCE ON THE BASIS OF WHICH PENALTY LEVIED BY THE ASSESSING OFFICER (AO), THAT IS ON ACCOUNT OF NON- DEDUCTION OF TDS ON PROCESSING CHARGES OF MICR, HAS REMITTED BACK TO THE FILE OF THE AO BY THIS TRIBUNAL IN QUANTUM ASSESSMENT APPEAL VIDE ORDER DATED 30.12.2020 IN ITA NO.957/AHD/2013. THE AR OF THE ASSESSEE ALSO FURNISHED THE COPY OF ORDER OF THIS BENCH IN ASSESSEES OWN CASE FOR A.Y.2009-10 IN ITA NO.957/AHD/2013. THE AR OF THE ASSESSEE, THUS SUBMITTED THAT ONCE THE ADDITION ON THE BASIS OF WHICH PENALTY WAS LEVIED BY AO HAS BEEN REMITTED BACK TO THE AO, THE PENALTY ORDER PASSED BY THE AO UNDER SECTION 271C OF THE ACT WOULD NOT SURVIVE. 3. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE (SR.DR) FOR THE REVENUE FAIRLY AGREED THAT ADDITION ON THE BASIS OF WHICH THE PENALTY HAS BEEN LEVIED HAS BEEN REMITTED BACK TO THE FILE OF THE AO. THE SR.DR SUBMITS THAT THE BENCH MAY TAKE DECISION IN ACCORDANCE WITH LAW. 4. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTIES AND HAVE GONE THROUGH THE ORDER OF LOWER AUTHORITIES AS WELL AS ORDER PASSED BY THIS BENCH IN ASSESSEES APPEAL IN QUANTUM THE SURAT PEOPLES CO-OPERATIVE BANK LTD., VS. ACIT, CIRCLE-4, SURAT,/ ITA NO.3375/AHD/2014 FOR A.Y. 2009-10 3 ASSESSMENT IN ITA NO.957/AHD/2013 DATED 30.12.2020 WHEREIN THE ADDITION ON ACCOUNT OF PROCESSING CHARGE FOR MICR HAS BEEN REMITTED BACK TO THE FILE OF AO BY PASSING THE FOLLOWING ORDER. 13. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTIES AND PERUSED THE ORDERS OF LOWER AUTHORITIES CAREFULLY. BEFORE US, THE LD.AR OF THE ASSESSEE IN HIS ALTERNATIVE SUBMISSION VEHEMENTLY SUBMITTED THAT THE SBI I.E. RECIPIENT OF MICR CHARGES HAVE INCLUDED THOSE RECEIPTS IN THEIR INCOME AND HAVE OFFERED THE SAME FOR TAXATION. THEREFORE, NO DISALLOWANCE BE SUSTAINED AT THE HAND OF PAYEE/ ASSESSEE. WE FIND CONVINCING FORCE IN HIS SUBMISSION AND ARE OF THE VIEW THAT ONCE THE RECIPIENT HAS OFFERED THE AMOUNT FOR TAXATION, NO DISALLOWANCE AT THE HAND OF PAYEE. THEREFORE, WE DIRECT THE LD.AO TO VERIFY THE FACT IF THE SBI HAVE PAID THE TAX ON MICR CHARGES PAID BY THE ASSESSEE, THE DISALLOWANCE IS MADE IN CASE OF ASSESSEE BE DELETED. IN THE RESULT, GROUND NO.2 IS ALLOWED FOR STATISTICAL PURPOSES. 5. CONSIDERING THE FACT THAT ADDITION ON THE BASIS OF WHICH PENALTY WAS LEVIED HAS ALREADY BEEN RESTORED BACK TO THE FILE OF AO, THEREFORE, THE PENALTY LEVIED BY THE AO VIDE ORDER DATED 27.09.2013 U/S.271C OF THE ACT WOULD NOT SURVIVE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 12 TH FEBRUARY 2021 BY PLACING THE RESULT IN THE NOTICE BOARD. SD/- SD/- (DR.ARJUN LAL SAINI) (PAWAN SINGH) ( /ACCOUNTANT MEMBER) ( /JUDICIAL MEMBER) / SURAT, DATED : 12 TH FEB 2021 / #SGR COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A)/ ITAT (DR)/GUARD FILE OF ITAT. BY ORDER / / TRUE COPY / / ASSISTANT REGISTRAR, SURAT