M/s. Syndicate Bank, Bangalore V. Additional Commissioner Of Income Tax (TDS), Range- 3, Bangalore

ITA 404/BANG/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5432 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 18-05-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI JCIT SR BENGALURU
• Assessee Lawyers: LALITHA RAMESWARAN CAS
• Keywords: Business income; Question of law; Non-deduction of tax; Reasonable cause; Corroborative evidences; Bonafide mistake; TDS
• Section: 271(1)(c); 273B; 192; 271B; 194A; 13; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R.BASKARAN, ACCOUNTANT MEMBER ITA NOS. A.Y. APPELLANT(S) VS. RESPONDENT 402 TO 404 / BANG/2020 2011-12 TO 2013-14 M/S. CANARA BANK (ERSTWHILE SYNDICATE BANK), FM WING, CANARA BANK, HEAD OFFICE, 112, J C ROAD, BANGALORE 560 002. TAN : BLRS 14425F PAN: AAACC 6106G THE ASSISTANT COMMISSIONER OF INCOME TAX (TDS), RANGE 3, BANGALORE. APPELLANT BY : MR. S. ANANTHAN & MS. LALITHA RAMESWARAN, CAS RESPONDENT BY : MS. R. PREMI, JCIT SR.DR(ITAT), BENGALURU. DATE OF HEARING : 01.10.2020 DATE OF PRONOUNCEMENT : 05.10.2020 O R D E R PER N.V. VASUDEVAN, VICE PRESIDENT THESE ARE ALL APPEALS BY THE ASSESSEE, A NATIONALI SED BANK, CARRYING ON BANKING BUSINESS AGAINST DIFFERENT ORDE RS OF RESPECTIVE CIT(APPEALS), BENGALURU, RELATING TO ASSESSMENT YEA RS 201-12 TO 2013-14 ARISING OUT OF COMMON ORDER DATED 31.10.2019. THE ISSUE INVOLVED IN ALL THE APPEALS ARE COMMON AND DEAL WITH THE ONLY ISSUE OF VALIDITY OF IMPOSITION OF PENALTY ON THE ASSESSEE U/S.271-C OF THE INCOME TAX ACT, 1961 (ACT). THE ISSUE ARISES UNDER IDENTICAL FACTS AND CIRCUMSTANCES AND THE REASONING FOR LEVYING PENALTY AND THE ARGUMENTS OF THE ASSESSEE FOR ITA NO. 402 TO 404/BANG/2020 PAGE 2 OF 15 NOT LEVYING PENALTY ARE IDENTICAL IN ALL THESE CASE S. THESE CASES WERE HEARD TOGETHER AND WE DEEM IT CONVENIENT TO PASS A COMMON ORDER. 2. AT THE TIME OF HEARING, BOTH THE PARTIES AGREE D THAT IDENTICAL ISSUE CAME UP FOR CONSIDERATION BEFORE THIS TRIBUNAL IN I TA NOS. 651 TO 656/BANG/2019 IN THE CASE OF SYNDICATE BANK, KORAMA NGALA, YELHANKA AND GANGANAGAR BRANCHES, BANGALORE, VIDE ORDER DATED 19 .07.2019, THE APPEALS OF THE ASSESSEES WERE ALLOWED DELETING THE PENALTY IMPOSED U/S. 271C OF THE INCOME TAX ACT, 1961 (ACT) UNDER SIMILA R FACTS AND CIRCUMSTANCES AS IN THE PRESENT CASES BEFORE US. T HE RELEVANT OBSERVATIONS IN THE AFORESAID DECISION ARE AS FOLLO WS:- 2. LEAVE TRAVEL ALLOWANCE (LTA) IS THE MOST COMMON ELEMENT OF COMPENSATION ADOPTED BY EMPLOYERS TO REM UNERATE EMPLOYEES DUE TO THE TAX BENEFITS ATTACHED TO IT. LTA IS THE REMUNERATION PAID BY AN EMPLOYER FOR EMPLOYEES TRA VEL IN THE COUNTRY, WHEN HE IS ON LEAVE WITH THE FAMILY OR ALO NE. LTA AMOUNT IS TAX FREE. SECTION 10(5) OF THE INCOME-TAX ACT, 1961, READ WITH RULE 2B (COMMONLY KNOWN AS LTA RULES), PR OVIDES FOR THE EXEMPTION AND OUTLINES THE CONDITIONS SUBJE CT TO WHICH LTA IS EXEMPT. AS PER LTA RULES, LTA EXEMPTION CAN BE CLAIMED WHERE THE EMPLOYER PROVIDES LTA TO EMPLOYEE FOR LEAVE TO ANY PLACE IN INDIA TAKEN BY THE EMPLOYEE AND THE IR FAMILY. SUCH EXEMPTION IS LIMITED TO THE EXTENT OF ACTUAL TRAVEL COSTS INCURRED BY THE EMPLOYEE. TRAVEL WITHIN INDIA ONLY ALLOWED- AS PER LTA RULES, TRAVEL HAS TO BE UNDERTA KEN WITHIN INDIA AND OVERSEAS DESTINATIONS ARE NOT COVERED FOR EXEMPTION . SEC.10(5) OF THE ACT READS THUS:- SECTION: 10 (5) IN THE CASE OF AN INDIVIDUAL, THE VALUE OF ANY TRAVEL CONCESSION OR ASSISTANCE RECEIVED BY, OR DUE TO, HIM, ( A ) FROM HIS EMPLOYER FOR HIMSELF AND HIS FAMILY, IN CONNECTION WITH HIS PROCEEDING ON LEAVE TO ANY PLACE IN INDIA ; ( B ) FROM HIS EMPLOYER OR FORMER EMPLOYER FOR HIMSEL F AND HIS FAMILY, IN CONNECTION WITH HIS PROCEEDING TO ANY PL ACE IN ITA NO. 402 TO 404/BANG/2020 PAGE 3 OF 15 INDIA AFTER RETIREMENT FROM SERVICE OR AFTER THE TE RMINATION OF HIS SERVICE, SUBJECT TO SUCH CONDITIONS AS MAY BE PRESCRIBED (I NCLUDING CONDITIONS AS TO NUMBER OF JOURNEYS AND THE AMOUNT WHICH SHALL BE EXEMPT PER HEAD) HAVING REGARD TO THE TRAV EL CONCESSION OR ASSISTANCE GRANTED TO THE EMPLOYEES O F THE CENTRAL GOVERNMENT : PROVIDED THAT THE AMOUNT EXEMPT UNDER THIS CLAUSE SHALL IN NO CASE EXCEED THE AMOUNT OF EXPENSES ACTU ALLY INCURRED FOR THE PURPOSE OF SUCH TRAVEL. EXPLANATION. FOR THE PURPOSES OF THIS CLAUSE, 'FAMILY', IN RELATION TO AN INDIVIDUAL, MEANS ( I ) THE SPOUSE AND CHILDREN OF THE INDIVIDUAL ; AN D ( II ) THE PARENTS, BROTHERS AND SISTERS OF THE INDIVI DUAL OR ANY OF THEM, WHOLLY OR MAINLY DEPENDENT ON THE INDIVIDU AL; 3. RULE 2B OF THE INCOME TAX RULES, 1961 LAYS DOWN THE CONDITIONS FOR THE PURPOSE OF SECTION 10(5) AND IT READS THUS: 2B. (1) THE AMOUNT EXEMPTED UNDER CLAUSE ( 5 ) OF SECTION 10 IN RESPECT OF THE VALUE OF TRAVEL CONCESSION OR ASSISTANCE RECEIVED BY OR DUE TO THE INDIVIDUAL FROM HIS EMPLO YER OR FORMER EMPLOYER FOR HIMSELF AND HIS FAMILY, IN CONN ECTION WITH HIS PROCEEDING, ( A ) ON LEAVE TO ANY PLACE IN INDIA; ( B ) TO ANY PLACE IN INDIA AFTER RETIREMENT FROM SERVICE OR AFTER THE TERMINATION OF HIS SERVICE, SHALL BE THE AMOUNT ACTUALLY INCURRED ON THE PERFOR MANCE OF SUCH TRAVEL SUBJECT TO THE FOLLOWING CONDITIONS, NAMELY: (I) WHERE THE JOURNEY IS PERFORMED ON OR AFTER THE 1ST DAY OF OCTOBER, 1997, BY AIR, AN AMOUNT NOT EXCEEDING THE AIR ECONOMY FARE OF THE NATIONAL ITA NO. 402 TO 404/BANG/2020 PAGE 4 OF 15 CARRIER BY THE SHORTEST RO UTE TO THE PLACE OF DESTINATION; (II) WHERE PLACES OF ORIGIN OF JOURNEY AND DESTINATION ARE CONNECTED BY RAIL AND THE JOURNEY IS PERFORMED ON OR AFTER THE 1ST DAY OF OCTOBER, 1997, BY ANY MODE OF TRANSPORT OTHER THAN BY AIR, AN AMOUNT NOT EXCEEDING THE AIR- CONDITIONED FIRST CLASS RAIL FARE BY THE SHORTEST ROUTE TO THE PLACE OF DESTINATION; AND (III) WHERE THE PLACES OF ORIGIN OF JOURNEY AND DESTINATION OR PART THEREOF ARE NOT CONNECTED BY RAIL AND THE JOURNEY IS PERFORMED ON OR AFTER THE 1ST DAY OF OCTOBE R, 1997, BETWEEN SUCH PLACES, THE AMOUNT ELIGIBLE FOR EXEMPTION SHALL BE : (A) WHERE A RECOGNISED PUBLIC TRANSPORT SYSTEM EXISTS, AN AMOUNT NOT EXCEEDING THE 1ST CLASS OR DELUXE CLASS FARE, AS THE CASE MAY BE, ON SUCH TRANSPORT BY THE SHORTEST ROUTE TO THE PLACE OF DESTINATION; AND (B) WHERE NO RECOGNISED PUBLIC TRANSPORT SYSTEM EXISTS, AN AMOUNT EQUIVALENT TO THE AIR- CONDITIONED FIRST CLASS RAIL FARE, FOR THE DISTANCE OF THE JOURNEY BY THE SHORTEST ROUTE, AS IF THE JOURNEY HAD BEEN PERFORMED BY RAIL.] (2) THE EXEMPTION REFERRED TO IN SUB-RULE (1) SHALL BE AVAILABLE TO AN INDIVIDUAL IN RESPECT OF TWO JOURNEYS PERFORMED IN A BLOCK OF FOUR CALENDAR YEARS COMMENCING FROM THE CALENDAR YEAR 19 86 : [ PROVIDED THAT NOTHING CONTAINED IN THIS SUB-RULE SHALL APPL Y TO THE BENEFIT ALREADY AVAILED OF BY THE ASSESSEE IN RESPE CT OF ANY NUMBER OF JOURNEYS PERFORMED BEFORE THE 1ST DAY OF APRIL, 198 9 EXCEPT TO THE EXTENT THAT THE JOURNEY OR JOURNEYS SO PERFORMED SH ALL BE TAKEN INTO ITA NO. 402 TO 404/BANG/2020 PAGE 5 OF 15 ACCOUNT FOR COMPUTING THE LIMIT OF TWO JOURNEYS SPE CIFIED IN THIS SUB- RULE.] (3) WHERE SUCH TRAVEL CONCESSION OR ASSISTANCE IS N OT AVAILED OF BY THE INDIVIDUAL DURING ANY SUCH BLOCK OF FOUR CALENDAR Y EARS, AN AMOUNT IN RESPECT OF THE VALUE OF THE TRAVEL CONCESSION OR AS SISTANCE, IF ANY, FIRST AVAILED OF BY THE INDIVIDUAL DURING FIRST CALENDAR YEAR OF THE IMMEDIATELY SUCCEEDING BLOCK OF FOUR CALENDAR YEARS SHALL BE EL IGIBLE FOR EXEMPTION. EXPLANATION : THE AMOUNT IN RESPECT OF THE VALUE OF THE TRAVEL CONCESSION OR ASSISTANCE REFERRED TO IN THIS SUB-RU LE SHALL NOT BE TAKEN INTO ACCOUNT IN DETER-MINING THE ELIGIBILITY OF THE AMOUNT IN RESPECT OF THE VALUE OF THE TRAVEL CON-CESSION OR ASSISTANCE I N RELATION TO THE NUMBER OF JOURNEYS UNDER SUB-RULE (2).] [(4) THE EXEMPTION REFERRED TO IN SUB-RULE (1) SHAL L NOT BE AVAILABLE TO MORE THAN TWO SURVIVING CHILDREN OF AN INDIVIDUAL A FTER 1ST OCTOBER, 1998 : PROVIDED THAT THIS SUB-RULE SHALL NOT APPLY IN RESPECT OF C HILDREN BORN BEFORE 1ST OCTOBER, 1998, AND ALSO IN CASE OF MULTI PLE BIRTHS AFTER ONE CHILD. 4. THE ASSESSEE AS AN EMPLOYER WAS BOUND TO DEDUCT TAX AT SOURCE IN CASES WHERE THE LTA IS NOT EXEMPT I.E. IN A CASE WHERE THE CONDITIONS LAID DOWN IN SEC.10(2) READ WITH RUE 2B OF THE RULE S ARE NOT SATISFIED. THE ASSESSEE IN THESE APPEALS REIMBURSED LEAVE TRAV EL ALLOWANCES TO ITS EMPLOYEES IN RESPECT JOURNEY UNDERTAKEN OUT OF INDI A. IN RESPECT OF SUCH REIMBURSEMENT IT DID NOT DEDUCT TAX AT SOURCE. ACC ORDING TO THE BANK, IF THE DESTINATION IS INDIA, IRRESPECTIVE OF THE EN-RO UTE JOURNEY, IT NEED NOT DEDUCT TAX AT SOURCE AS THE REIMBURSEMENT OF LTA WA S EXEMPT U/S.10(5) OF THE ACT. 5. A SURVEY WAS CONDUCTED U/S.133A OF THE ACT IN TH E BUSINESS PREMISES OF THE ASSESSEE AND IT WAS NOTICED THAT TH E ASSESSEE DID NOT DEDUCT TAX AT SOURCE ON LTA REIMBURSEMENT EVEN WHEN THE TRAVEL WAS OUT OF INDIA TO A DESTINATION IN INDIA THROUGH A LO NG CIRCUITOUS ROUTE. THE ACT MANDATES THAT A SPECIFIED PERCENTAGE OF TAX IS REQUIRED TO BE DEDUCTED BY THE PAYER AT THE TIME OF MAKING CERTAIN PAYMENTS TO THE PAYEE. THE REQUIREMENT TO DEDUCT TAX IS THERE FOR P AYMENTS SUCH AS PAYMENT OF COMMISSION, INTEREST, SALARY, ROYALTY, C ONTRACT PAYMENT, BROKERAGE ETC. THE NON EXEMPT LTA WILL BE IN THE NA TURE OF SALARY AND ITA NO. 402 TO 404/BANG/2020 PAGE 6 OF 15 THE ASSESSEE OUGHT TO HAVE DEDUCTED TAX AT SOURCE A ND THE ASSESSEE FAILED TO DO SO UNDER THE IMPRESSION THAT IF THE DE STINATION IS INDIA, IRRESPECTIVE OF THE FACT THAT EN-ROUTE THE JOURNEY IS OUT OF INDIA, THE ENTIRE LTA IS EXEMPT. THE DEPARTMENT HOWEVER TOOK A CONTR ARY VIEW AND HELD THAT WHEN THE TRAVEL IS OUTSIDE INDIA IRRESPECTIVE OF THE FACT THAT THE ULTIMATE DESTINATION IS INDIA, TAX OUGHT TO HAVE BE EN DEDUCTED AT SOURCE. THE ASSESSEE WAS ACCORDINGLY PROCEEDED U/S.200(1) & 200(1A) OF THE ACT FOR FAILURE TO DEDUCT TAX AT SOURCE AND WAS HEL D TO BE AN ASSESSEE IN DEFAULT IN RESPECT OF TAXES NOT DEDUCTED AT SOURCE AND ALSO LIABLE FOR INTEREST ON SUCH TAX NOT DEDUCTED AT SOURCE AND PAI D TO THE GOVERNMENT, FROM THE DATE ON WHICH IT OUGHT TO HAVE BEEN DEDUCT ED AND PAID TO THE GOVERNMENT TILL THE DATE ON WHICH THE SAME IS PAID TO THE CREDIT OF THE CENTRAL GOVERNMENT. OVER AND ABOVE THE OBLIGATION U/S.200 OF THE ACT, THE ASSESSEE IS ALSO LIABLE FOR IMPOSITION OF PENAL TY U/S.271-C OF THE ACT FOR THE FAILURE TO DEDUCT TAX AT SOURCE. THE PROVI SIONS OF SEC.271-C READS THUS:- SECTION: 271C. 1) IF ANY PERSON FAILS TO A) DEDUCT THE WHOLE OR ANY PART OF THE TAX AS REQUI RED BY OR UNDER THE PROVISIONS OF CHAPTER XVIIB; OR B) PAY THE WHOLE OR ANY PART OF THE TAX AS REQUIRED BY OR UNDER I. SUB-SECTION (2) OF SECTION 115-O; OR II. THE SECOND PROVISO TO SECTION 194B, THEN, SUCH PERSON SHALL BE LIABLE TO PAY, BY WAY OF PENALTY, A SUM EQUAL TO THE AMOUNT OF TAX WHICH SUCH PERSON FAILED TO DEDUCT OR PAY AS AFORESAID. 2) ANY PENALTY IMPOSABLE UNDER SUB-SECTION (1) SHAL L BE IMPOSED BY THE JOINT COMMISSIONER. 6. HOWEVER, SECTION 273B OF THE ACT PROVIDES THAT IN CASE THE PAYER PROVES TO THE REVENUE DEPARTMENT THAT THERE WAS SOM E REASONABLE CAUSE FOR THE FAILURE TO DEDUCT TAX THEN THE PENALTY UNDE R SECTION 271C IS WAIVED OFF. SEC.273-B READS THUS:- SECTION 273B - PENALTY NOT TO BE IMPOSED IN CERTAI N CASES, CAN BE READ AS FOLLOWS: ITA NO. 402 TO 404/BANG/2020 PAGE 7 OF 15 273B. NOTWITHSTANDING ANYTHING CONTAINED IN THE PROVISIONS OF CLAUSE (B) OF SUB-SECTION (1) OF SECTION 271, SECTI ON 271A, SECTION 271AA, SECTION 271B , SECTION 271BA, SECTION 271BB, SECTION 271C, SECTION 271CA, SECTION 271D, SECTION 271E, SE CTION 271F, SECTION 271FA, SECTION 271FB, SECTION 271G, SECTION 271H, CLAUSE (C) OR CLAUSE (D) OF SUB SECTION (1) OR SUB-SECTION (2) OF SECTION 272A, SUB-SECTION (1) OF SECTION 272AA OR SECTION 2 72B OR SUBSECTION (1) OR SUBSECTION (1A) OF SECTION 272BB OR SUB-SECTION (1) OF SECTION 272BBB OR CLAUSE (B) OF SUB-SECTION (1) OR CLAUSE (B) OR CLAUSE (C) OF SUBSECTION (2) OF SECTION 273, NO PENALTY SHALL BE IMPOSABLE ON THE PERSON OR THE ASSESSEE, AS THE CAS E MAY BE, FOR ANY FAILURE REFERRED TO IN THE SAID PROVISIONS IF H E PROVES THAT THERE WAS REASONABLE CAUSE FOR THE SAID FAILURE. 7. THERE IS NO DEFINITION FOR THE TERM REASONABLE CAUSE AND IT HAS TO BE DECIDED UPON THE FACTS OF EACH CASE. THE HON'BLE SUPREME COURT OF INDIA MADE THE FOLLOWING OBSERVATION IN THE CASE OF CIT, NEW DELHI VS. M/S ELI LILLY & COMPANY (INDIA) PVT. LTD. & ORS., C IVIL APPEAL NO. 5114/2007, ORDER DATED 25TH MARCH, 2009, WITH REGARD TO REASONABLE CAUSE FOR FAILURE TO DEPOSIT TDS:- (IV) ON THE SCOPE OF SECTION 271C READ WITH SECTIO N 273B: 35. SECTION 271C INTER ALIA STATES THAT IF ANY PERS ON FAILS TO DEDUCT THE WHOLE OR ANY PART OF THE TAX AS REQUIRED BY THE PROVISIONS OF CHAPTER XVII-B THEN SUCH PERSON SHALL BE LIABLE TO PAY, BY WAY OF PENALTY, A SUM EQUAL TO THE AMOUNT OF TAX WHICH SUC H PERSON FAILED TO DEDUCT. IN THESE CASES WE ARE CONCERNED WITH SEC TION 271C(1)(A). THUS SECTION 271C(1)(A) MAKES IT CLEAR THAT THE PENALTY LEVIABLE SHALL BE EQUAL TO THE AMOUNT OF TA X WHICH SUCH PERSON FAILED TO DEDUCT. WE CANNOT HOLD THIS PROVIS ION TO BE MANDATORY OR COMPENSATORY OR AUTOMATIC BECAUSE UNDE R SECTION 273B PARLIAMENT HAS ENACTED THAT PENALTY SHALL NOT BE IMPOSED IN CASES FALLING THEREUNDER. SECTION 271C FALLS IN THE CATEGORY OF SUCH CASES. SECTION 273B STATES THAT NOTWITHSTANDING ANY THING CONTAINED IN SECTION 271C, NO PENALTY SHALL BE IMPOSED ON THE PERSON OR THE ASSESSEE FOR FAILURE TO DEDUCT TAX AT SOURCE IF SUC H PERSON OR THE ASSESSEE PROVES THAT THERE WAS A REASONABLE CAUSE F OR THE SAID FAILURE. THEREFORE, THE LIABILITY TO LEVY OF PENALT Y CAN BE FASTENED ONLY ON 44 THE PERSON WHO DO NOT HAVE GOOD AND SUFF ICIENT REASON FOR NOT DEDUCTING TAX AT SOURCE. ONLY THOSE PERSONS WILL BE LIABLE TO PENALTY WHO DO NOT HAVE GOOD AND SUFFICIENT REASON FOR NOT ITA NO. 402 TO 404/BANG/2020 PAGE 8 OF 15 DEDUCTING THE TAX. THE BURDEN, OF COURSE, IS ON THE PERSON TO PROVE SUCH GOOD AND SUFFICIENT REASON. IN EACH OF THE 104 CASES BEFORE US, WE FIND THAT NON-DEDUCTION OF TAX AT SOURCE TOOK PL ACE ON ACCOUNT OF CONTROVERSIAL ADDITION. THE CONCEPT OF AGGREGATI ON OR CONSOLIDATION OF THE ENTIRE INCOME CHARGEABLE UNDER THE HEAD 'SALARIES' BEING EXIGIBLE TO DEDUCTION OF TAX AT SO URCE UNDER SECTION 192 WAS A NASCENT ISSUE. IT HAS NOT BE CONS IDERED BY THIS COURT BEFORE. FURTHER, IN MOST OF THESE CASES, THE TAX-DEDUCTOR- ASSESSEE HAS NOT CLAIMED DEDUCTION UNDER SECTION 40 (A)(III) IN COMPUTATION OF ITS BUSINESS INCOME. THIS IS ONE MOR E REASON FOR NOT IMPOSING PENALTY UNDER SECTION 271C BECAUSE BY NOT CLAIMING DEDUCTION UNDER SECTION 40(A)(III), IN SOME CASES, HIGHER CORPORATE TAX HAS BEEN PAID TO THE EXTENT OF RS. 906.52 LACS (SEE CIVIL APPEAL NO. 1778/06 ENTITLED CIT V. THE BANK OF TOKYO-MITSU BISHI LTD.). IN SOME OF THE CASES, IT IS UNDISPUTED THAT EACH OF THE EXPATRIATE EMPLOYEES HAVE PAID DIRECTLY THE TAXES DUE ON THE F OREIGN SALARY BY WAY OF ADVANCE TAX/SELF-ASSESSMENT TAX. THE TAX-DEDUCTOR- ASSESSEE WAS UNDER A GENUINE AND BONA FIDE BELIEF T HAT IT WAS NOT UNDER ANY OBLIGATION TO DEDUCT TAX AT SOURCE FR OM THE HOME SALARY PAID BY THE FOREIGN COMPANY/HO AND, CONSEQUE NTLY, WE ARE OF THE VIEW THAT IN NONE OF THE 104 CASES PENAL TY WAS LEVIABLE UNDER SECTION 271C AS THE RESPONDENT IN EA CH CASE HAS DISCHARGED ITS 45 BURDEN OF SHOWING REASONABLE CAUS E FOR FAILURE TO DEDUCT TAX AT SOURCE . 8. THE HON'BLE KARNATAKA HIGH COURT MADE THE FOLLO WING OBSERVATION IN THE CASE OF THE COMMISSIONER OF INCO ME TAX AND OTHERS VS. THE RAJAJINAGAR CO-OPERATIVE BANK LIMITE D ITA 86 OF 2006, ORDER DATE 20TH JULY, 2011, WITH REGARDS TO REASON ABLE CAUSE FOR FAILURE TO DEPOSIT TDS:- 10. IN THE INSTANT CASE, THE ASSESSEE IS A COOPERATIVE BANK. CLAUSE 5 OF SUB-SECTION (3) OF SECTION 194A EXPRESS LY EXEMPTS THE BANK FROM DEDUCTING THE TAX AT SOURCE O N INTEREST PAYABLE BY THE BANK TO ITS MEMBERS AND OTH ER COOPERATIVE SOCIETIES. AS STATED BY THE ASSESSEE, T HEY DID NOT PROPERLY CONSTRUE THIS PROVISION. BY MIS-CONSTR UING THIS PROVISION THEY ALSO DID NOT DEDUCT TAX FROM THE INT EREST PAYABLE TO NONMEMBERS. THAT IS THE BONAFIDE MISTAKE WHICH THEY HAVE COMMITTED. THEIR BONFIDES IS DEMONS TRATED TO THE EFFECT THAT ONCE IN A SURVEY THE SAID MISTAK E WAS NOTICE AND POINTED OUT IMMEDIATELY THEY HAVE PAID T HE TAX ITA NO. 402 TO 404/BANG/2020 PAGE 9 OF 15 WITH INTEREST. THEREFORE, IN THE LIGHT OF THIS UNDISPUTED FACTS O F THIS CASE, WHEN THE APPELLATE COMMISSIONER AND THE TRIBUNAL HELD THAT THE SAME CONSTITUTES A REASONABLE CAUSE A ND WHEN THE SAME IS NOT SHOWN TO BE FALSE, THE ASSESSEE HAS SAT ISFIED THE REQUIREMENT OF SECTION 273- B, IN WHICH EVENT, NO P ENALTY SHALL BE IMPOSABLE. THEREFORE THE ORDER PASSED BY THE TRI BUNAL AND THE APPELLATE COMMISSIONER IS VALID AND LEGAL AND D O NOT SUFFER FROM ANY LEGAL INFIRMITY WHICH CALLS FOR INTERFEREN CE. ACCORDINGLY THE SUBSTANTIAL QUESTION OF LAW FRAMED IS ANSWERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. (EMPHASIS SUPPLIED) 9. IN THE PRESENT CASE, THE ASSESSEE WAS HELD TO B E AN ASSESSEE IN DEFAULT AND ORDERS U/S.200(1) & 200(1A) OF THE ACT BY THE AO AND THE CIT(A). THE HONBLE ITAT HAS ALSO CONFIRMED THE OR DERS OF THE REVENUE AUTHORITIES ON THIS ISSUE. THE ASSESSEE IS IN APPEAL BEFORE THE HONBLE KARNATAKA HIGH COURT AGAINST THE SAID ORDER S AND THE HONBLE KARNATAKA HIGH COURT IN ITA NO.634/2017 BY ORDER DA TED 22.11.2018 ADMITTED THE APPEAL FRAMING THE FOLLOWING SUBSTANTI AL QUESTION OF LAW:- (I) WHETHER THE TRIBUNAL WAS JUSTIFIED IN HOLDING T HAT FOR THE PURPOSES OF EXEMPTION UNDER SECTION 10(5) OF THE AC T, TRAVEL BY THE EMPLOYEES WOULD ONLY HAVE TO BE WITHIN INDIA , WITHOUT APPRECIATING THAT THE SAID PROVISION DOES NOT PROHI BIT TRAVEL OUTSIDE INDIA BUT ONLY LIMITS THE EXEMPTION AVAILAB LE TO THE EMPLOYEES UNDER THE SAID PROVISION TO REIMBURSEMENT S FOR TRAVEL WITHIN INDIA? (II) WHETHER THE TRIBUNAL WAS JUSTIFIED IN HOLDING THAT THE APPELLANTS WERE ASSESSEE-IN-DEFAULT UNDER SECTION 2 01 OF THE ACT FOR SHORT DEDUCTION OF TAXES AT SOURCE UNDER SE CTION 192 OF THE ACT, WHEN THE SAID PROVISION ONLY ENVISAGES A FAIR ESTIMATE OF THE INCOME OF THE EMPLOYEES AND NOT MATHEMATICALLY PRECISE COMPUTATION BY THE EMPLOYER FOR THE PURPOSES OF TAX DEDUCTION AT SOURCE? 10. THE REVENUE AUTHORITIES PROCEEDED TO IMPOSE PE NALTY U/S.271C ON THE ASSESSEE REJECTING THE PLEA OF THE ASSESSEE THAT THE FAILURE TO DEDUCT TAX AT SOURCE WAS ON A REASONABLE BELIEF THA T ASSESSEE FAILED TO DO SO UNDER THE IMPRESSION THAT IF THE DESTINATION IS INDIA, IRRESPECTIVE OF THE FACT THAT EN-ROUTE THE JOURNEY IS OUT OF INDIA, THE ENTIRE LTA IS ITA NO. 402 TO 404/BANG/2020 PAGE 10 OF 15 EXEMPT. AGGRIEVED BY THE ORDERS OF THE CIT(A) THE A SSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 11. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT WHEN THE HONBLE HIGH COURT ADMITS AN APPEAL AGAINST THE ORD ER IN QUANTUM PROCEEDINGS, NO PENALTY CAN BE LEVIED ON THE ASSESS EE. IT WAS SUBMITTED THAT WHEN THE HIGH COURT ADMITS SUBSTANTIAL QUESTIO N OF LAW ON AN ADDITION, IT BECOMES APPARENT THAT THE ADDITION IS CERTAINLY DEBATABLE. IN SUCH CIRCUMSTANCES NO PENALTY CAN BE LEVIED U/S 271 C. IN THIS REGARD THE LEARNED COUNSEL FOR THE ASSESSEE PLACED RELIANCE ON THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF CIT V. ANKITA ELECTRONICS PVT. LTD. 379 ITR 50 (KAR) WHEREIN IT WAS HELD THAT THE ADMISSION OF SUBSTANTIAL QUESTION OF LAW BY THE HIGH COURT LENDS CREDENCE TO THE BONA FIDES OF THE ASSESSEE IN HIS ACTION AND HENCE NO PE NALTY CAN BE IMPOSED ON SUCH ADDITIONS/DEFAULTS. HE ALSO PLACED RELIAN CE ON A DECISION OF THE HONBLE ITAT JAIPUR BENCH IN THE CASE OF STATE BANK OF INDIA VS. ACIT (2019) 101 TAXMANN.COM 61 (JAIPUR-TRIB.) WHEREIN ON IDENTICAL DEFAULT OF NON DEDUCTION OF TAX AT SOURCE ON PERQUISITE NOT EXEMPT U/S.10(5) OF THE ACT AND IMPOSITION OF PENALTY FOR SUCH FAILURE U/S.271C OF THE ACT, THE ITAT JAIPUR DELETED PENALTY IMPOSED U/S.271C OF THE ACT, OBSERVING AS FOLLOWS:- 10. WE ALSO REFER TO HON'BLE SUPREME COURT DECISIO NS IN CASE OF CIT V. I.T.I. LTD . [2009] 183 TAXMAN 219 ( SC) AND CIT V. LARSEN & TOUBRO LTD . [2009] 181 TAXMAN 71 (SC) WHEREIN IT WAS HELD THAT THE BENEFICIARY OF EXEMPTION UNDER SECTION 10(5) IS AN INDIVIDUAL EMPLOYEE. THERE IS NO CIRCULAR OF CENTRAL BOARD OF DIRECT TAXES (CBDT) REQUIRING THE EMPLOYER UNDER SECTION 192 TO COLLECT AND EXAMINE THE SUPPORTING EVIDENCE TO THE DECLARATION TO BE SUBMITTED BY AN E MPLOYEE(S). THEREFORE, IT WAS HELD THAT AN ASSESSEE-EMPLOYER IS UNDER NO STATUTORY OBLIGATION UNDER THE INCOME-TAX ACT , 1961, AND/OR THE RULES TO COLLECT EVIDENCE TO SHOW THAT ITS EMPLOYEE (S) HAD ACTUALLY UTILIZED THE AMOUNT(S) PAID TOWARDS LEAVE TRAVEL CONCESSION(S)/CONVEYANCE ALLOWANCE. 11. WE THUS FIND THAT THERE IS NOTHING SPECIFIC WHI CH HAS BEEN PROVIDED BY CBDT IN ITS CIRCULAR ISSUED UNDER SECTION 192 FOR THE RELEVANT FINANCIAL YEAR. WHAT HAS BEEN REITERAT ED IS ADHERENCE TO THE PROVISIONS AS CONTAINED IN SECTION 10(5) READ WITH RULE 2B. SIMILARLY, THE HON'BLE SUPREME COURT HAS ALSO H ELD THAT AN ITA NO. 402 TO 404/BANG/2020 PAGE 11 OF 15 ASSESSEE EMPLOYER IS UNDER NO STATUTORY OBLIGATION UNDER THE INCOME-TAX ACT , 1961, AND/OR THE RULES TO COLLECT EVIDENCE TO SHOW THAT ITS EMPLOYEES HAD ACTUALLY UTILIZED TH E AMOUNT PAID TOWARDS LEAVE TRAVEL CONCESSION. EVEN THOUGH THE SA ME IS NOT REQUIRED AS PER DECISION REFERRED SUPRA, IN THE INS TANT CASE, THE ASSESSEE BANK HAS BEEN DILIGENT, AND HAS COLLECTED AND BROUGHT ON RECORD EVIDENCE TO SHOW THAT ITS EMPLOYEES HAD ACTU ALLY UTILIZED THE AMOUNT PAID TOWARDS LEAVE TRAVEL CONCESSION. 12. AT THE SAME TIME, IN TERMS OF ADHERENCE TO THE PROVISIONS AS CONTAINED IN SECTION 10(5) READ WITH RULE 2B, WE FIND THAT THE ASSESSEE BANK HAS ALLOWED EXEMPTION TO ALL ITS EMPL OYEES WHO HAVE SUBMITTED LFC CLAIM. THE REVENUE HAS NOT DISPU TED THE LFC CLAIM IN RESPECT OF THESE EMPLOYEES EXCEPT IN R ESPECT OF 12 EMPLOYEES. THESE 12 EMPLOYEES, WHO HAVE TRAVELLED T O FOREIGN COUNTRIES AS PART OF THEIR TRAVEL ITINERARY WITH DE SIGNATED PLACE OF TRAVEL IN INDIA, AND IN RESPECT OF WHICH THEY HAVE SUBMITTED THEIR LFC CLAIM, HAS BEEN DISPUTED BY THE REVENUE AS NOT ELIGIBLE FOR EXEMPTION UNDER SECTION 10(5) IN RESPECT OF AMOUNT REIMBURSED TOWARDS FOREIGN LEG OF THEIR TRAVEL. THE EXPLANATIO N OF THE ASSESSEE BANK IS THAT WHILE CALCULATING THE TAX LIA BILITY OF ITS EMPLOYEES, THE FIGURE OF LFC WAS ALWAYS EXEMPTED AN D THIS RULE WAS BEING FOLLOWED SINCE MANY YEARS, BEING IN A NAT URE OF THUMB RULE AND TDS EXEMPTION OF LFC WAS THUS ALLOWED ALMO ST MECHANICALLY YEAR AFTER YEAR. TO OUR MIND, IT IS IM PORTANT TO BE CONSISTENT BUT AT THE SAME TIME, ONE NEEDS TO BE MI NDFUL OF WHAT BEEN SUBMITTED BY THE EMPLOYEES TOWARDS THEIR LFC C LAIMS. IT APPEARS THAT THE ASSESSEE BANK HAS LOOKED AT THESE 12 EMPLOYEES CLAIM BROADLY, AS IN OTHER CASES, IN TERMS OF ACTUA L TRAVEL BEING UNDERTAKEN, THE DESIGNATED PLACE BEING IN INDIA AND THE AMOUNT OF CLAIM NOT EXCEEDING THE ECONOMY FARE OF THE NATIONA L CARRIER BY THE SHORTEST ROUTE TO THE PLACE OF DESTINATION. HOW EVER, THE REVENUE'S CASE IS THAT WHAT THE ASSESSEE BANK HAS F AILED TO CONSIDER IS THAT THE TRAVEL PLAN INCLUDES THE FOREI GN LEG OF TRAVEL AND CORRESPONDING TRAVEL EXPENSES WHICH IS NOT ELIG IBLE FOR EXEMPTION UNDER SECTION 10(5) OF THE ACT. HOWEVER, THE ASSESSEE'S BANK EXPLANATION TO THIS EFFECT IS THAT SECTION 10(5) AND RULE 2B DOESN'T PLACE A BAR ON TRAVEL TO A FOR EIGN DESTINATION DURING THE COURSE OF TRAVEL TO A PLACE IN INDIA AND THERE IS NOTHING EXPLICIT PROVIDED THEREIN TO PROHI BIT SUCH TRAVEL IN ORDER TO DENY THE EXEMPTION. HAVING CONSIDERED THE RIVAL ITA NO. 402 TO 404/BANG/2020 PAGE 12 OF 15 SUBMISSIONS AND FACTS ON RECORD, WE ARE OF THE OPIN ION THAT THE ASSESSEE BANK HAS UNDERTAKEN REASONABLE STEPS IN TE RMS OF VERIFYING THE ASSESSEE'S CLAIM TOWARDS THEIR LFC CL AIMS AND IS AWARE OF EMPLOYEES TRAVELLING TO FOREIGN COUNTRIES AS PART OF THEIR TRAVEL ITINERARY BUT AT THE SAME TIME, THERE IS AN ERROR OF JUDGMENT ON PART OF THE ASSESSEE BANK IN UNDERSTANDING AND A PPLYING THE PROVISIONS OF SECTION 10(5) OF THE ACT. THEREFORE, WE ARE UNABLE TO ACCEPT THE REVENUE'S CONTENTION THAT THE ASSESSE E BANK HAS NOT DEDUCTED THE TAX INTENTIONALLY, FULLY KNOWING THAT THE LFC IS APPLICABLE FOR TRAVEL IN INDIA ONLY AND NO FOREIGN TRAVEL IS ALLOWABLE AS IT IS A CASE OF ERROR OF JUDGMENT AND NO MALAFIDE CAN BE ASSUMED ON PART OF THE BANK. FURTHER, NOTHING HA S BEEN BROUGHT ON RECORD WHICH IN ANY WAYS SUGGEST CONNIVA NCE ON PART OF THE ASSESSEE BANK OR FORGED CLAIMS SUBMITTED BY THE EMPLOYEES AND WHICH HAS BEEN DISCOVERED BY THE REVENUE DURING THE COURSE OF ITS EXAMINATION. AS FAIRLY SUBMITTED BY THE ASSE SSEE BANK, WHILE CALCULATING THE ESTIMATED TAX LIABILITY OF IT S EMPLOYEES, IT ALWAYS CONSIDER LFC CLAIM AS EXEMPT UNDER SECTION 10(5) AND THE SAME POSITION, BEING FOLLOWED AND ACCEPTED CONS ISTENTLY IN THE PAST YEARS, WAS FOLLOWED IN THE CURRENT FINANCI AL YEAR AS WELL. HOWEVER, FOR THE FIRST TIME, AFTER THE SURVEY BY TH E TAX DEPARTMENT, THIS ISSUE AROSE FOR CONSIDERATION AND AFTER THE JUDGMENT OF THE TRIBUNAL, THE MATTER GOT CLARIFIED AND THE ASSESSEE BANK HAS DULY COMPLIED AND DEPOSITED THE OUTSTANDIN G DEMAND ALONG WITH INTEREST AND HAS TAKEN CORRECTIVE STEPS IN SUBSEQUENT YEARS AS WELL. 13. IN LIGHT OF ABOVE DISCUSSIONS AND IN THE ENTIRE TY OF FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT THERE WAS REASONABLE CAUSE IN TERMS OF SECTION 273B OF THE ACT FOR NOT DEDUCTING TAX BY THE ASSESSEE BANK. IN THE RESULT, THE PENALTY SO LEVIED UNDER SECTION 271C IS HEREBY DIRECTED TO BE DELETED. 12. THE LEARNED DR RELIED ON THE ORDER OF CIT(A) A ND FURTHER DREW OUR ATTENTION TO A DECISION OF ITAT BANGALORE BENCH IN THE CASE OF ANOTHER BRANCH OF THE ASSESSEE IN ITA NO.532 TO 536/BANG/2019 ORDER DATED 12.7.2019 , WHEREIN THIS TRIBUNAL REMANDED THE QUESTION OF IMPOSITION OF PENALTY TO THE CIT(A) FOR FRESH CONSI DERATION TO SEE PARITY OF FACTS BETWEEN THE CASE OF THE ASSESSEE AND THE D ECISION OF ITAT JAIPUR BENCH IN THE CASE OF STATE BANK OF INDIA (SUPRA) . ITA NO. 402 TO 404/BANG/2020 PAGE 13 OF 15 13. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISS IONS. IT IS UNDISPUTED THAT AS AGAINST THE ORDER OF THE TRIBUNA L HOLDING THE ASSESSEE TO BE IN DEFAULT FOR NON DEDUCTION OF TAX AT SOURCE , THE ASSESSEE HAS PREFERRED APPEAL BEFORE THE HONBLE KARNATAKA HIGH COURT AND THE QUESTION WHETHER THE ASSESSEE IS GUILTY OF NON DEDU CTION OF TAX AT SOURCE OR NOT IS TO BE DECIDED IN SUCH APPELLATE PROCEEDIN GS. IN THIS BACKGROUND OF FACTS, THE QUESTION IS WHETHER PENALTY CAN BE IM POSED ON THE ASSESSEE U/S.271C OF THE ACT. THE HONBLE KARNATAKA HIGH CO URT IN THE CASE OF ANKITA ELECTRONICS PVT.LTD. (SUPRA) HAD AN OCCASION TO DEAL WITH IDENTICAL ISSUE AND THE COURT HELD AS FOLLOWS:- 6. WHILE DISMISSING THE APPEAL, THE TRIBUNAL HAS OBSE RVED THAT THE ADDITIONS IN RESPECT OF WHICH PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED, HAVE BEEN ADMITTED BY THE HIGH COUR T FOR CONSIDERATION AND THUS FOUND THAT THE ADDITIONS MAD E WERE DEBATABLE AND WOULD LEAD CREDENCE TO THE BONAFIDES OF THE ASS ESSEE. IT THUS HELD THAT THE MATTER OF IMPOSING PENALTY UNDER SECT ION 271(1)(C) OF THE ACT, WAS NOT EXIGIBLE IN THE CASE ON HAND. 7. THE TRIBUNAL PLACED RELIANCE ON DECISION OF THE IT AT, MUMBAI IN THE CASE OF NAYAN BUILDERS & DEVELOPERS (P.) LTD. V. ITO [IT APPEAL NO. 2379/MUM/2009, DATED 18-3-2011], WHICH H AD ALSO HELD THAT 'THE ADMISSION OF SUBSTANTIAL QUESTIONS OF LAW BY THE HIGH COURT LENDS CREDENCE TO THE BONA FIDES OF THE ASSES SEE IN CLAIMING DEDUCTION. ONCE IT TURNS OUT THAT THE CLAIM OF THE ASSESSEE COULD HAVE BEEN CONSIDERED FOR DEDUCTION AS PER A PERSON PROPERLY INSTRUCTED IN LAW AND IS NOT COMPLETELY DEBARRED AT ALL, THE MERE FACT OF CONFIRMATION OF DISALLOWANCE WOULD NOT PER SE LE AD TO THE IMPOSITION OF PENALTY.' 8. THE ASSESSEE IN THE PRESENT CASE HAD DISCLOSED ALL THE MATERIALS ON WHICH IT WAS CLAIMING DEDUCTION. THE MATTER AS TO W HETHER THE DEDUCTION WAS TO BE GIVEN OR NOT, WAS TAKEN UP BY T HE REVENUE AUTHORITIES AND IT WAS HELD THAT CERTAIN DEDUCTIONS CLAIMED BY THE ASSESSEE WERE TO BE DISALLOWED. IT IS NOT DISPUTED THAT THE QUESTIONS REGARDING THE DISALLOWANCE OF THE DEDUCTIONS CLAIME D BY THE ASSESSEE IS UNDER CONSIDERATION BY THE HIGH COURT, AS THE APPEAL FILED BY THE ASSESSEE HAS BEEN ADMITTED, ON THE SUB STANTIAL QUESTIONS OF LAW WHICH HAVE BEEN REPRODUCED HEREINABOVE. 9. THE MERE ADMISSION OF THE APPEAL BY THE HIGH COURT ON THE SUBSTANTIAL QUESTIONS OF LAW AS HAVE BEEN QUOTED AB OVE, WOULD MAKE ITA NO. 402 TO 404/BANG/2020 PAGE 14 OF 15 IT APPARENT THAT THE ADDITIONS MADE WERE DEBATABLE. THE TRIBUNAL HAS THUS RIGHTLY HELD THAT THE ADMISSION OF SUBSTANTIAL QUESTIONS OF LAW BY THE HIGH COURT LEADS CREDENCE TO THE BONA FIDE O F THE ASSESSEE AND THEREFORE, THE PENALTY IS NOT EXIGIBLE UNDER SE CTION 271(1)(C) OF THE ACT. MERELY BECAUSE THE CLAIM OF THE ASSESSEE H AS BEEN REJECTED BY THE REVENUE AUTHORITIES WOULD NOT MAKE THE ASSES SEE LIABLE FOR PENALTY. 14. IN THE LIGHT OF THE AFORESAID DECISION OF THE H ONBLE KARNATAKA HIGH COURT, WE ARE OF THE VIEW THAT LEVY OF PENALTY U/S.271C OF THE ACT, IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CA SE, CANNOT BE SUSTAINED AND THE SAME IS DIRECTED TO BE DELETED. 15. AS FAR AS THE DECISION OF THE CO-ORDINATE BENC H IN THE CASE OF SYNDICATE BANK (SUPRA) IS CONCERNED, WE ARE OF THE VIEW THAT THIS ISSUE HAS NOT BEEN RAISED NOR CONSIDERED IN THAT CA SE. SINCE THE IMPOSITION OF PENALTY U/S.271C FAILS ON THIS GROUND , WE ARE OF THE VIEW THAT THERE IS NO NECESSITY TO REMAND THE ISSUE TO CIT(A) FOR CONSIDERATION AFRESH, AS WAS DONE BY THE TRIBUNAL I N THE CASE REFERRED TO BY THE LEARNED DR. WE THEREFORE HOLD THAT THE I MPOSITION OF PENALTY IN THE FACTS AND CIRCUMSTANCES OF THE CASE CANNOT BE JUSTIFIED AND THE SAME IS DIRECTED TO BE CANCELLED. 3. WE ARE OF THE VIEW THAT THE FACTS AND CIRCUMSTA NCES UNDER WHICH PENALTY U/S. 271C OF THE ACT WAS IMPOSED IN THE PRE SENT APPEALS ARE SIMILAR TO THE FACTS AND CIRCUMSTANCES IN THE AFORESAID DEC ISION OF THE TRIBUNAL. THEREFORE, FOLLOWING THE SAME, THE PENALTY LEVIED U /S. 271C OF THE ACT IN THE CASES NOW BEFORE US IS DELETED. 4. IN THE RESULT, ALL THE APPEALS BY THE ASSESSEE S ARE ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF OCTOBER, 2020. SD/- SD/- ( B R BASKARAN ) ( N V VASUDEVAN ) ACCOUNTANT MEMBER VICE PRE SIDENT BANGALORE, DATED, THE 5 TH OCTOBER, 2020. / DESAI S MURTHY / ITA NO. 402 TO 404/BANG/2020 PAGE 15 OF 15 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.