M/s. The Oriental Insurance Company Ltd., Meerut V. ITO, Meerut

ITA 4355/DEL/2014

• Counselvise Citation: 435520114 RSA 2014
• Duration Of Justice: 1 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 08-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH ES, NEW DELHI (CIRCUIT BENCH AT MEERUT) BEFORE : SHRI I.C. SUDHIR , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER ITA NO S . 4356 TO 4362/DEL./2014 ASSTT. YEAR S : 2008 - 09 & 2009 - 10 THE ORIENTAL INSURANCE COMPANY LTD. VS. INCOME - TAX OFFICER ( TDS), 346, ANAND BHAWAN, KHAIR NAGAR, MEERUT. MEERUT [PAN: AAACT0627R] (APPELLANT) (RESPONDENT) APPELLANT BY : RESPONDENT BY : NONE DATE OF HEARING : 14.12.2015 DATE OF PRONOUNCEM ENT : 22 .12.2015 ORDER PER BENCH : 01 . THE ABOVE APPEALS HAVE BEEN PREFERRED AGAINST THE ORDER OF CIT(APPEALS), MEERUT , CONFIRMING THE DEMANDS U/S. 201(1)/201(1A) OF THE INCOME - TAX ACT FOR ASSESSMENT YEARS 2008 - 09 AND 2009 - 10 FOR VARIOUS QUARTERS. AS ALL THESE APPEALS ARE ARISING EITHER OUT OF THE SHORT DEDUCTION OF TAX MADE BY THE ASSESSEE ORON ACCOUNT OF INTEREST THERE ON , WHICH WAS DEPOSITED BUT THE CHALLANS DID NOT MATCH WITH THE OLTAS SYSTEM OF INCOME - TAX DEPARTMENT AND THEREFORE, THE CREDIT FOR THE SAME W A S NOT GIVEN, WHICH ITA NO S . 4355 TO 4362/DEL./2014 2 2 RESULTED INTO SHORT DEDUCTION OF TAX FOR VARIOUS QUARTERS OF F.Y. 2007 - 08 AND 2008 - 09. 02 . THE A SSESSING OFFICER [ITO (TDS)], MEERUT BASED ON THE E - TDS RETURNS FILED BY THE ASSESSEE FOR F.Y. 2007 - 08 AND 2008 - 09 HAS RA I S ED FOLLOWING DEMANDS : SR NO APPEAL NO F Y QUARTER AND RETURN FORM AMOUNT OF TDS AMOUNT OF INTEREST TOTAL 1 4355/DEL/2014 A Y 2008 - 09 2007 - 08 1 ST QUARTER 26Q 6980 4939 11919 2 4356/DEL/2014 A Y 2008 - 09 2007 - 08 2 ND QUARTER 26Q 8601 8959 17560 3 4357/DEL/2014 A Y 2008 - 09 2007 - 08 3 RD QUARTER 26Q 3970 7756 11726 4 4358/DEL/2014 A Y 2008 - 09 2007 - 08 Q1 TO Q4 2 4 Q 0 8580 8580 5 4359/DEL/2014 A Y 2009 - 10 2008 1 ST QUARTER 26Q 74460 37467 111927 6 4360/DEL/2014 A Y 2009 - 10 2008 2 ND QUARTER 26Q 0 1883 1883 7 4361/DEL/2014 A Y 2009 - 10 2008 3 RD QUARTER 26Q 0 4536 4536 ITA NO S . 4355 TO 4362/DEL./2014 3 3 8 4362/DEL/2014 A Y 2009 - 10 2008 - 09 Q1 TO Q 4 24Q 0 7300 7300 03 . AGAINST THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT ( A), WHO DISMISSING THE APPEA L OF THE ASSESSEE HELD THAT AS THE TAXES PAID BY THE ASSESSEE ARE NOT REFLECTED IN OLTAS, THE ASSESSEE SHOULD HAVE FILED RECTIFICATION APP LICATION AND FURTHER AS THOSE TDS CHALLANS ARE MIS M ATCHED WITH THE OLTAS SYSTEM, NO CREDIT CAN BE GRANTED TO THE ASSESSEE. HE FURTHER HELD THAT THE APPELLANT HAS UTTERLY FAILED TO DISCHARGE THE ONUS CAST UPON IT AND THEREFORE, HE CONFIRMED THE DEMAND S . 04 . N ONE APPEARED FOR THE ASSESSEE. THEREFORE, THE ISSUE IS DECIDED ON THE BASIS OF INFORMATION AVAILABLE ON RECORD. 05 . THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, SUBMITTED THAT AS THE TAX DEPOSITED BY THE ASSESSEE IS NOT REFLECTED IN OLTAS, CRED IT CANNOT BE GIVEN TO THE ASSESSEE TILL FULL VERIFICATION OF TAX SO PAID IS MADE AND, THEREFORE, HE SUBMITTED THAT AS IN ANOTHER GROUND OF APPEAL, THE ASSESSEE HAS SUBMITTED THAT THERE IS NO SHORT DEDUCTION OF TAX AND FULL TAX HAS BEEN DEPOSITED, THE MATTE R SHOULD BE SENT BACK TO THE AO FOR VERIFICATION AND THEN TO GRANT CREDIT FOR THE SAME. ITA NO S . 4355 TO 4362/DEL./2014 4 4 06 . WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS. THE SHORT QUESTION THAT ARISES IN THESE CASES IS THAT THE ASSESSEE HAS DEPOSITED TAX DEDUCTED AT SOURCE ALONG WITH INTEREST WHEREVER CHARGEABLE . HOWEVER, THE CREDIT FOR THE SAME WAS NOT GRANTED TO THE ASSESSEE ON PROCESSING OF E - TDS STATEMENT FILED FOR VARIOUS QUARTERS IN FORM NO. 24Q AND 26Q OF INCOME - TAX RULES, 1962. IT IS NOT THE CASE OF THE REVENUE THAT THE AMOUNT OF TAX DEDUCTED AT SOURCE HAS NOT BEEN DEPOSITED BY THE ASSESSEE TO THE CREDIT OF INCOME TAX DEPARTMENT, BUT THE CLAIM OF THE REVENUE IS THAT THOUGH THE TAX HA S BEEN DEPOSITED, BUT THERE IS A MISMATCH IN THE CHALLANS AND THEREFORE, THE CREDIT HAS NOT BEEN GIVEN TO THE ASSESSEE. THE CIT ( A) HAS HELD THAT THE ASSESSEE SHOULD HAVE FILED CORRECTION STATEMENT OF VARIOUS E - TDS RETURNS FILED BY THE ASSESSEE AGAINST THE DEMAND RAISED. WE FULLY AGREE WITH THE CIT(A) THAT THE ASSESSES SHOULD HAVE FILED THE CORRECTION STATEMENTS STATING THE CORRECT PAN OF THE DEDUCTEE , AMOUNT OF TAX DEDUCTED AND DEPOSITED TO THE CREDIT OF GOVT . OF INDIA GIVING PROPER INFORMATION OF CHALLAN IDENTIFICATION NUMBER, DATE OF PAYMENT AND THE BANK. BUT WHEN THE ASSE SSEE SUBMITS THAT IT HAS ALREADY DEPOSITED THE TAX AT SOURCE FOR WHICH TDS CREDIT ARE NOT BEING SHOWN IN OLTAS STATEMENT OF THE ASSESS E E THEN THE ITO(TDS) IS DUTY BOUND TO CANCEL THE DEMAND RAISED ON THE ASSESSEE AND THE INTEREST CHARGED THEREON. WHEN THE ITA NO S . 4355 TO 4362/DEL./2014 5 5 ASSESSEE HAS PRODUCED THE CHALLANS OF TAX PAID, THE MISMATCH IN THE CHALLAN MAY RESULT IN NON - GRANTING OF TDS PAYMENT IN THE HANDS OF TAX DEDUCTEE, BUT THERE IS NO REASON THAT DESPITE EVIDENCE OF PAYMENT OF TAX, THE ASSESSEE MAY BE ASKED TO PAY FURT HER DE MAND AND INTEREST THEREON JUST BECAUSE THERE IS A MISMATCH OF CHALLAN IN OLTAS. WE DO NOT SUBSCRIBE TO THE VIEW EXPRESSED BY THE CIT ( A) THAT THE APPELLANT HAS FAILED TO DISCHARGE THE ONUS CAST UPON IT. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE DIREC T THE ITO ( TDS) TO VERIFY THE ORIGINAL CHALLANS OF TAX PAID IN ALL THESE APPEALS AND GRANT CREDIT OF SUCH TAX IN THE HANDS OF THE ASSESSEE AS TAX DEDUCTOR. THE AO MAY, ON SUCH VERIFICATION, DECIDE THE ISSUE AFRESH FOR ANY SHORT DEDUCTION OF TAX AND INTERES T THEREON, IF ANY. IN THE RESULT, THE GROUNDS OF ALL THESE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES WITH THE ABOVE DIRECTIONS. 07 . IN THE RESULT, ALL THESE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 2 . 1 2 . 2 0 1 5 . - S D / - - S D / - ( I.C. SUDHIR ) ( PRASHANT MAHARISHI ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 2 . 1 2 . 2 0 1 5 *AKS/ - COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT ITA NO S . 4355 TO 4362/DEL./2014 6 6 (3) COMMISSIONER (4) CIT ( A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT. REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI