Kolkata Metro Rail Corporation Ltd., Kolkata V. DCIT, (TDS), CIR-58, KOLKATA, Kolkata

ITA 383/KOL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1833 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 08-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SOUMYAJIT DASGUPTA
• Assessee Lawyers: B L SINGHAI
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D, BENCH KOLKATA BEFORE SHRI N.V. VASUDEVAN, JM &DR. A.L.SAINI, AM ./ITA NO.383/KOL/2016 ( / ASSESSMENT YEAR: 2012-13) KOLKATA METRO RAIL CORPORATION LTD. HRBC OFFICE COMPLEX, KMRCL BHAWAN, MUNSHI PREMCHAND SARANI, KOLKATA 700 021. VS. DCIT(TDS), CIR-58, KOLKATA 10B, MIDDLETON ROW, KOLKATA 700 016. ./ ./PAN/GIR NO. : CALKO 6157 E (APPELLANT) .. (RESPONDENT) APPELLANT BY :SHRI B.L. SINGHAI, FCA RESPONDENT BY:SHRI SOUMYAJIT DASGUPTA, ADDL. CIT / DATE OF HEARING : 22/11/2017 /DATE OF PRONOUNCEMENT : 17/01/2018 / O R D E R PER DR. ARJUN LAL SAINI, AM: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PERTAINING TO ASSESSMENT YEAR 2012-13, IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)24, KOLKATA, IN APPEAL NO.1327/CIT(A)- 24/KOL/2014-15, DATED 18.01.2016, WHICH IN TURN ARISES OUT OF AN ORDER PASSED BY THE AO U/S.201(1)/201(1A) OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT), DATED 28.03.2014. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1) FOR THE ORDER PASSED BY THE LD. CIT(A)-24, KOL IS BAD IN LAW AND AS WELL AS FACTS. 2) FURTHER, LD. CIT(A) ERRED NOT IN DIRECTING THE ASSESSING OFFICER TO REDUCE THE DEMAND FROM RS.52,22,641/- TO RS.3,73,293/-. 3) FOR THE LD. CIT(A) ERRED IN UPHOLDING THE DEMAND OF RS.3,73,293/- WITHOUT APPRECIATING FACTS OF THE CASE. 4) FOR THE APPELLANT PRAYS FOR THE RIGHT TO PUT, ADD AND ALTER ADDITIONAL GROUNDS AT THE TIME OF APPEAL. KOLKATA METRO RAIL CORPORATION LTD. ITA NO.383/KOL/2016 ASSESSMENT YEAR: 2012-13 PAGE | 2 3.THE BRIEF FACTS QUA THE ISSUE ARE THAT THERE WAS A DELAY OF REMITTANCE OF TDS IN DEPOSITING THE AMOUNTS INTO GOVERNMENT ACCOUNTS. THE ASSESSEE SUBMITTED BEFORE THE ASSESSING OFFICER (TDS) THAT THE DELAY, IN MOST OF THE CASES WAS MADE BY THE BANKING AUTHORITIES. HOWEVER, THE ASSESSING OFFICER (TDS) REJECTED THE CONTENTION OF THE ASSESSEE AND LEVIED THE INTEREST AT RS.12,88,721/-. 4. AGGRIEVED BY THE ADDITION MADE BY THE ASSESSING OFFICER (TDS), THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). DURING THE APPELLATE PROCEEDINGS, THE CIT(A) NOTED AS DETAILS SUBMITTED BY THE ASSESSEE, THAT IN RESPECT OF ALL DEDUCTEES AS LISTED, DELAY IN MONTHS BEING DIFFERENCE IN COLUMN-16 AND COLUMN-14 WAS OF TWO MONTHS. THE DELAY AS COMPUTED WAS NOT OF 60 DAYS BUT 2 MONTHS PERIODS HAS TO BE TAKEN BECAUSE RATE OF INTEREST WAS TO BE COMPUTED ON THE BASIS OF PER MONTH OR PART OF MONTH. THE CIT(A) OBSERVED THAT IN RESPECT OF THE FINAL DEMAND AS APPEARING IN THE SYSTEM CHART OF RS.3,73,292/- EVEN THE ASSESSEE SEEMS TO BE AGREEING AND NOTED THAT ONLY DISPUTE WAS WHETHER THE BANK WAS TO BE HELD RESPONSIBLE OR THE ASSESSEE DEDUCTOR. IN CALCULATION OF INTEREST IN THE ASSESSEE`S CASE IT WAS HARDLY MATERIAL WHO WAS TO BE BLAMED FOR THE DELAY.IN OTHER WORDS, THERE WAS DELAY AND INTEREST WILL FOLLOW ON THE SAID DELAY IN TERMS OF SECTION 201(1A) OF THE I.T. ACT. THE CIT(A),BASED ON THE ABOVE FINDINGS, DISMISSED THE APPEAL OF THE ASSESSEE. 5. NOT BEING SATISFIED WITH THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. THE ASSESSEE HAS SUBMITTED BEFORE US THAT THERE WAS NO MISTAKE ON THE PART OF THE ASSESSEE AND IT WAS THE MISTAKE COMMITTED BY THE BANK AUTHORITIES IN REMITTING TDS AMOUNT TO THE GOVERNMENT EXCHEQUER, AND, THEREFORE, THE ASSESSEE SHOULD NOT BE PENALIZED.THE SAID MISTAKE WAS SUPPOSED TO HAVE BEEN RECTIFIED BY THE BANK. THEREFORE, THERE WAS NO ANY MISTAKE ON THE PART OF THE ASSESSEE IN DEPOSITING THE TDS AMOUNT INTO KOLKATA METRO RAIL CORPORATION LTD. ITA NO.383/KOL/2016 ASSESSMENT YEAR: 2012-13 PAGE | 3 GOVT. ACCOUNTS AND, THEREFORE, THE INTEREST LEVIED ON DELAYED REMITTANCE OF TDS SHOULD BE WAIVED. 6. HOWEVER, THE LD. DR FOR THE REVENUE SUBMITTED BEFORE US THAT THE INTEREST OCCURRED, DUE TO DELAY OF REMITTANCE OF TDS, IS AUTOMATIC AND THERE WAS NO REASONABLE CAUSE TO WAIVE THE INTEREST. 7. WE HAVE GIVEN A CAREFUL CONSIDERATION TO THE RIVAL SUBMISSIONS, AND PERUSED THE MATERIAL AVAILABLE ON RECORD, WE ARE OF THE VIEW THAT IN ASSESSEE`S CASE UNDER CONSIDERATION, THE ONLY DISPUTE IS WHETHER THE BANK IS TO BE HELD RESPONSIBLE OR THE ASSESSEE (DEDUCTOR). WE NOTE THAT THE LD CIT(A) HAS RIGHTLY HELD THAT IN CALCULATION OF INTEREST IN THE ASSESSEE`S CASE, IT WAS HARDLY MATERIAL, WHO WAS TO BE BLAMED FOR THE DELAY. BEFORE US, THE LD COUNSEL HAS NOT EXPLAINED OR SHOWN ANY MATERIAL, BY WHICH WE MAY BELIEVE WHETHER BANKING AUTHORITIES ARE RESPONSIBLE FOR SUCH DELAY. AFTER GOING THROUGH THE PROVISIONS OF SECTION 201(1A) OF THE I.T. ACT, WE FIND THAT INTEREST ON ACCOUNT OF DELAY OF REMITTANCE OF TDS AMOUNT INTO GOVERNMENT EXCHEQUER IS AUTOMATIC AND SHOULD BE CHARGED BY THE SYSTEM. THEREFORE, WE DO NOT ACCEPT THE CONTENTION OF THE ASSESSEE THAT IT IS THE MISTAKE COMMITTED BY THE BANK AUTHORITIES IN REMITTING TDS AMOUNT TO THE GOVERNMENT ACCOUNTS. ACCORDINGLY, WE CONFIRM THE ORDER PASSED BY THE LD. CIT(A). 8.IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE, IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 17/01/2018. SD/- (N.V. VASUDEVAN) SD/- (DR. A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; DATED 17/01/2018 [ RS SPS] KOLKATA METRO RAIL CORPORATION LTD. ITA NO.383/KOL/2016 ASSESSMENT YEAR: 2012-13 PAGE | 4 / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/D.D.O, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. / THE APPELLANT KOLKATA METRO RAIL CORPORATION LTD. 2. / THE RESPONDENT- DCIT(TDS), CIR-58, KOLKATA 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, KOLKATA 6. / GUARD FILE.