DATTA MEGHE INSTITUTE OF MEDICAL SCIENCES, NAGPUR V. ASSISTANT COMMISSIONER OF INCOME TAX CPC TDS, NAGPUR

ITA 399/NAG/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8712 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 12-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 200A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SH. VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No.399/NAG/2017 (ASSESSMENT YEAR 2016-17) DattaMeghe Institute of Medical Science, SDMP Campus, Atrey Layout Nagpur-440 022 PAN:NGPS0 1557D (APPELLANT) Vs. Asst. CIT, CPC, TDS Nagpur (RESPONDENT) ORDER PER YOGESH KUMAR U.S., JM This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals)-2, Nagpur, [“Ld. CIT(A)”, for short], dated 18/09/2017 for Assessment Year 2016-17. 2.An order u/s 201(1A) of the Act has been passed against the Assessee on 22.05.2016 by charging interest at Rs.34,320/- u/s 201(1A) of the Act. The Assessee has preferred an appeal before the Ld. CIT(A) and the Ld. CIT(A) vide Appellant bySh.K.P. Dewali,Adv. Respondent bySh.Vitthal M. Bhosle, Jt.CIT-DR Date of Hearing08.06.2022 Date of Pronouncement10.06.2022 2 ITA No.399/Nag/2017 Datta Meghe Institute of Medical Sciencevs. PCIT order dated 18.09.2017 dismissed the appeal of the Assessee by confirming the order passed by the Ld. AO. 3.Aggrieved by the same, the assesse has preferred the present appeal on the following grounds. “1.Order passed u/s 200A of I.T. Act 1961 is illegal, invalid and bad in law. 2.The learned CIT(A) erred in confirming the interest charged on late payment of TDS at Rs.34,257/- by A.O. u/s 201(1A) of I.T. Act 1961 without giving reasonable opportunity and without considering statement of facts along with memo of appeal. 3.Interest charged by A.O. u/s 201(1 A) and confirmed by CIT(A) is unjustified, unwarranted and excessive. 4.The learned A.O. ought not have charged interest u/s 201(1 A) of I.T. Act 1961 as assessee has deposited the cheques of payment of tax deducted at source within due date and same have been encashed from bank account of assessee before due date of payment. 5.Any other ground that shall be prayed at the time of hearing.” 4.We have heard the Ld. Counsel for the Assessee and also the Ld. DR, verified the materials on record and gave our thoughtful consideration. The Ld. Counsel for the Assessee submitted that, the Assessee has tendered TDS before the due date and the amount has been already deducted from the Assessee’s bank account, but the Bank officials have mentioned the subsequent dates as the date of tendering the TDS. On the other hand the Ld. AO has considered the date mentioned by the Bank officials, but not considered the actual date of 3 ITA No.399/Nag/2017 Datta Meghe Institute of Medical Sciencevs. PCIT tendering the TDS by the Assessee. The details of the payment made by the Assessee are as under: Sr. No Date of Tender Clearing Date in bank Date of Payment considered while Levying Interest Challan Amount Challan Amount Page No. 103.03.201605.03.201609.03.20162,48415 203.03.201605.03.201609.03.20164,92,73816 3 03.03.2016 05.03.201609.03.20162,524 4,97,746 17 425.04.201627.04.2016’ ' 02.05.20161,836 18 525.04.201627.04.201602.05.201678 18 6 25.04.201627.04.201602.05.2016 2,28618 725.04.201627.04.201602.05.20168,23619 825.04.201628.04.201602.05.20161,45,63319 925.04.201627.04.201602.05.20164,92,85019 1027.04.201629.04.201602.05.20161,58420 1127.04.201629.04.201602.05.201646520 1227.04.201629.04.201602.05.2016122 6,53,090 20 Thus Ld. Counsel for the Assessee submitted that, the orders of the lower authorities are erroneous and deserves to be set aside by the Tribunal. 5. Per contra, the Ld. DR could not dispute the factual matrix put forth by the Assessee and therefore relied on the orders of the lower authorities. 6. We have heard the parties and verified the material on record. As per the Bank statement the Assessee, the Assessee has paid TDS well within the due date. Apart from the same, Assessee has also shown the due diligence, when the Bank officials have put the stamp mentioning the subsequent date as tendering the TDS, immediately wrote letters on 18-03-2016 and 04-05-2016 4 ITA No.399/Nag/2017 Datta Meghe Institute of Medical Sciencevs. PCIT respectively by bringing the fact of tendering the TDS well within due date and sought certificate for the delay from the Bank. Further, the Ld. A.O. has passed the order charging the interest u/s 201 sub-section (1A) of the Act in a mechanical manner, without finding and verifying the fact regarding actual dates of payment of TDS made by the Assessee. The Ld. CIT(A) has also committed an error in confirming the order passed u/s 200(1A) of the Act. Therefore, we allow the grounds of appeal and set aside the orders of the lower authorities. 6.In result, the appeal filed by the Assessee is allowed. Order pronounced in the Open Court on this 10 th Day of June, 2022. Sd/- Sd/- (VIKRAM SINGH YADAV) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:10/06/2022 PK/Sps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT 6. Guard File True Copy By Order Assistant Registrar, Income Tax Appellate Tribunal, Nagpur Bench, Nagpur