M/s Karnataka Vikas Grameena Bank , Bantwal V. Income Tax Officer (TDS) , Mangalore

ITA 369/BANG/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4159 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-02-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 20-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: S V RAVISHANKAR
• Keywords: TDS; Set aside
• Section: 133A; 201(1); 250; 194A; 13; 6; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 369 TO 371 /BANG/201 7 (ASSESSMENT YEAR: 20 12 - 13 TO 2014 - 15 ) M/S. KARNATAKA VIKAS GRAMEENA BANK, B.C. ROAD BRANCH, BANTWAL, DAKSHINA KANNADA - 574 219 .APPELLANT PAN AAAAK 6324Q VS. I NCOME T AX O FFICER, TDS, MANGALORE. RESPONDENT. ASSESSEE BY: SHRI S.V. RAVISHANKAR, ADVOCATE. REVENUE BY: S MT. R. PREMI, JCIT (D.R) DATE OF HEARING : 04.02 .20 20. DATE OF PRONOUNCEMENT : 26 .02 .20 20. O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS), BANGALORE PASSED UNDER SECTIONS 201(1) R.W.S. 201(1A), 194A AND 250 OF THE INCOME TAX ACT, 1961 ('T HE ACT'). SINCE THE A PPEALS HAVE COMMON AND IDENTICAL ISSUES , THEY ARE CLUBBED AND HEARD TOGETHER AND 2 ITA NO S . 369 TO 371/BANG/2017 CONSOLIDATED ORDER IS PASSED. FOR THE SAKE OF CONVENIENCE, WE SHALL TAKE UP THE ITA NO.369/BANG/2017 FOR THE ASSESSMENT YEAR 2012 - 13 AND FACTS NARRATED THEREIN. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 3 ITA NO S . 369 TO 371/BANG/2017 4 ITA NO S . 369 TO 371/BANG/2017 3. THE ASSESSEE IS A BRANCH OF KARNATAKA VIKAS GRAMEENA BANK .WHEREAS THE KARNATAKA VIKAS GRAMEENA BANK HAS COME INTO EXISTENCE ON 12.09.2005 AND SPONSORED BY SYNDICAT E BANK FOR CATERING TO THE NEEDS OF FARM SECTOR AND NON - FARM SE CTOR. S URVEY UNDER SECTION 133A OF THE ACT WAS CONDUCTED ON 7.1.2015 IN THE PREMISES OF ASSESSEE FOR VERIFYING THE COMPLIANCE OF TDS PROVISIONS UNDER CHAPTER XVI B OF THE ACT . D URING THE SURVEY PROCEEDINGS, DETAILS WERE CALLED FOR IN RESPE CT OF INTEREST PAYMENTS EXCEEDING RS.10 , 000 / - PER ANNUM AND COPIES OF FORM NO 15 G & 15H . WHEREAS THE ASSESSEE HAS OBTAINED FORM NO15G & 15H ONLY FROM FOUR CUSTOM ERS AND FOR REMAINING CUSTOMERS, NO COMPLIANCE OF TDS PROVISIONS. FINALLY , ASSESSING OFFICER PASSED ORDER UNDER SECTION 201(1) AND 201(1A) OF THE ACT DT.4.3.2015 WITH DEMAND OF RS.31,794 BEING SHORTFALL OF TDS UNDER SECTION 1 94A OF THE ACT UNDER SECTION 201(1) AND 20 1(1A) OF RS.11,12 8 AGGREGATING TO RS.42,922. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS) , BUT THE CIT(APPEALS) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER AND DISMISSED THE APPEAL. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE CIT(APPEALS) HAS ERRED IN CONFIRMIN G THE ORDER OF ASSESSING OFFICER, WHEREAS THE ASSESSEE HAS OBTAINED FORMNO 15G & 15H FROM FOUR DEPOS ITORS AND WHEREAS IN RESPECT OF OTHER S, THEY ARE AGRICULTURISTS AND NO RETURN OF INCOME WAS FILED. THE 5 ITA NO S . 369 TO 371/BANG/2017 LEARNED A UTHORIZED REPRESENTATIVE SUBMITTED THAT THE PROVISIONS OF SECTION 194A OF THE ACT SHALL NOT APPLY WHERE THERE IS NO TAXABLE IN COME IN THE HANDS OF DEDUCTEES. AND SUPPORTED HIS ARGUM ENTS WITH THE DECISION RENDERED BY PANAJI BENCH IN THE CASE OF RBL BANK LIMITED VS. ITO (TDS) (2016) 65 TAXMAN.COM 219 (PANAJI) . CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTED ISSUE ARGUED AND ENVISAGED BY T H E LEARNED AUTHORIZED REPRESENTATIVE THAT THE CIT(APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER ON RAISING D EMAND UNDER SECTION 201(1) AND 201(1A) OF THE ACT. THE LEARNED AUTHORIZED REPRESENTATIVE EMPHASIZED THAT THE ASSESSEE HAS COMPLIED WITH THE PROVISIONS AND DEPOSIT HOLDERS HAVE OF FERED INCOME IN THEIR INCOME TAX ASSESSMENTS IN RESPECT OF OTHER DEPOSIT HOL DERS, THEY DO NOT HAVE TAXABLE INCOME AND ARE AGRICULTURISTS, HENCE THE QUESTION OF DEDUCTION OF TDS DOES NOT ARISE, AND RELIED ON THE TRIBUNAL DECISION OF RBL BANK LIMITED VS. ITO (TDS) ( SUPRA ) EXTRACTED BELOW : 6 ITA NO S . 369 TO 371/BANG/2017 IN THE COURSE OF HEARING, THE BENC H HAS CALLED FOR STATEMENT OF DEPOSIT HOLDERS ALONG WITH THE NAME S , ADDRESS AND THE AMOUNT OF INTEREST, AND THE LEARN ED AUTHORIZED REPRESENTATIVE EXPRESSED INABILITY TO SUBMIT IMMEDIATELY. HE SOUGHT TIME TO FURNISH THE DETAILS. IN ANY CASE, WE CONSIDERING T HE SUBMISSIONS OF ASSESSEE, ARE OF THE OPINION THAT THE ASSESSING OFFICER HAS TO VERIF Y AND EXAMINE THE DETAILS OF DEPOSIT HOLDERS AND THE COMPONENT OF INTERE ST PAID TO DEPOSIT HOLDERS BEING AGRICULTURISTS WHO DO NOT HAVE TAXABLE INCOME AND ALLOW THE GROUN DS OF APPEAL OF ASSESSEE FOR STATISTICAL PURPOSES. 6. SIMILARLY IN ITA NOS.370 & 371/BANG/2017, THE ISSUES ARE SIMILAR AND IDENTICAL AND THE SAME DECISION AS HE LD IN ITA NO.369/BANG/2017 SHALL APPLY. ACCORDINGLY, THE ORDERS OF THE CIT(APPEALS) IS SET ASIDE AND RESTORE TO THE FILE OF ASSESSING OFFICER WITH SIMILAR DIRECTIONS CITED ABOVE AND ALLOW THE GROUNDS OF APPEAL FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE ASSESSEE'S APPEAL S A RE ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. S D / - S D / - ( B.R. B ASKARAN ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 6 .02. 20 20 . *REDDY GP 7 ITA NO S . 369 TO 371/BANG/2017 COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE