Greater Hyderabad Municipal Corporation, Hyderabad, Hyderabad V. DCIT, Circle-14(2), TDS, Hyderabad, Hyderabad

ITA 440/HYD/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6056 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-05-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 08-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M NAVEEN
• Assessee Lawyers: S RAMA RAO
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. ASST. YEAR APPELLANT RESPONDENT 439/HYD/17 2012-13 GREATER HYDERABAD MUNICIPAL CORPORATION (HEAD OFFICE) HYDERABAD [TAN: HYDG08342F] DY. COMMISSIONER OF INCOME TAX, CIRCLE-14(2)(TDS), HYDERABAD 440/HYD/17 2013-14 FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : SHRI M. NAVEEN, DR DATE OF HEARING : 10-05-2018 DATE OF PRONOUNCEMENT : 06-06-2018 O R D E R PER B. RAMAKOTAIAH, A.M. : THESE TWO APPEALS ARE BY ASSESSEE AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-8, HYDERABA D, BOTH DATED 05-12-2016. SINCE THE FACTS ARE COMMON IN BOTH THE APPEALS, THESE ARE HEARD TOGETHER AND DECIDED BY THIS C OMMON ORDER. ASSESSING OFFICER (AO) HAS INITIATED PROCEED INGS U/S. 201(1) AND 201(1A) OF THE INCOME TAX ACT [ACT] AND AFT ER ISSUING A QUESTIONNAIRE, RAISED DEMAND IN THE IMPUGNE D YEARS AS UNDER: ITA NOS. 439 & 440/HYD/2017 :- 2 - : A.Y. DATE OF ORDER DEMAND U/S. 201(1) IN RS. DEMAND U/S. 201(1A) IN RS. TOTAL DEMAND IN RS. 2012-13 11-03-2014 50,27,206 55,00,488 1,05,27,694 2013-14 11-03-2014 35,52,175 23,35,209 58,87,384 TOTAL: 85,79,381 78,35,697 1,64,15,078 2. IT WAS CONTESTED BY ASSESSEE BEFORE THE LD.CIT(A) TH AT ASSESSEE HAS DEDUCTED AND REMITTED TAX ON THE ENTIRE AMO UNT OF SALARIES DISBURSED TO ITS EMPLOYEES. HOWEVER, WHIL E REMITTING THE AMOUNTS INTO INCOME TAX ACCOUNT, SOME AMOUNTS ARE REMITTED ON THE TAN OF THE APPELLANT AND SOM E AMOUNTS ARE REMITTED ON THE PAN OF THE RESPECTIVE EMPLO YEES FOR THE YEAR(S) CONCERNED. IT WAS FURTHER SUBMITTED THAT ASSESSEE HAS EXPLAINED THE ISSUE CLEARLY AND HAS ALS O ENSURED THAT THERE WAS NO PENDING TDS OR SHORT DEDUCTION OF TDS UNDER THE YEARS CONCERNED. HOWEVER, THIS REQUEST WAS NOT CONSIDERED AND THE TDS PAID ON PAN OF EMPLOYEES WAS NEITHER EXAMINED NOR CONSIDERED WHILE PASSING THE ORDER. I T WAS ALSO CONTENDED THAT AO HAS NOT PROVIDED ANY INFORMATION AS REGARDS THE DETAILS OF EMPLOYEES FOR WHOM THE SO CALLE D TDS WAS NOT DEDUCTED. IT WAS CONTESTED THAT THE QUANTIFICATION ITSELF WAS NOT MADE AVAILABLE TO ASSESSEE SO THAT THE SA ME CAN BE ANSWERED. IT WAS FURTHER SUBMITTED THAT BASING ON THE INFORMATION READILY AVAILABLE WITH ASSESSEE, A DETAILE D STATEMENT GIVING THE NAMES OF EMPLOYEES, AMOUNT OF TDS REMITTED ON THEIR PANS IN THE YEAR AND ALSO ON THE T AN OF THE EMPLOYEES WAS SUBMITTED. IT WAS FURTHER SUBMITTED THAT GHMC HAS PAID TDS OF RS. 29,38,256/- ON THE PANS OF ITA NOS. 439 & 440/HYD/2017 :- 3 - : RESPECTIVE EMPLOYEES DURING THE YEARS [FOR AY. 2012- 13] AND SIMILAR AMOUNT OF RS. 33,60,341/- [FOR AY. 2013-14]. IT WAS FURTHER SUBMITTED THAT IT WAS ONLY AN ERROR THAT HAS TAKEN PLACE IN REMITTANCE OF THE TDS ON THE PANS OF THE RESPE CTIVE EMPLOYEES BUT ASSESSEE HAS COMPLIED WITH ALL THE TDS PROVISIONS. LD.CIT(A) HAS REMITTED THE MATTER TO THE FI LE OF AO ON REMAND AND THE OBSERVATIONS OF THE AO AND JCIT, TDS WERE EXTRACTED IN THE ORDER BUT ULTIMATELY, LD.CIT(A) RELIED ON THE AOS ORDER ON THE REASON THAT ASSESSEE HAS NOT RESPON DED AND THE REMAND REPORTS WERE DUELY ACCEPTED. 3. CONTESTING THE ORDER OF LD.CIT(A), IT WAS SUBMITTED THAT ASSESSEE HAS FURNISHED STATEMENT OF TDS PAYMENTS, CHAL LANS USING PANS OF EMPLOYEES TO THE CIT(A) [WHICH WAS ALSO PLACED IN PAPER BOOK BEFORE US] AND SUBMITTED THAT INSPITE OF REMITTING THE AMOUNTS, THE CIT(A) CONFIRMED THE ORDER. IT WAS SUBMITTED THAT THE MATTER MAY BE RESTORED TO THE FILE OF AO ITSELF TO BE EXAMINED AFRESH. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS AND PERUSING THE PAPER BOOK PLACED ON RECORD, WE ARE OF THE OPINION TH AT THERE IS MERIT IN ASSESSEES CONTENTIONS THAT THE ENTIRE AMOUN T OF TDS HAS BEEN REMITTED OR TAXES HAVE BEEN PAID ON THE SA LARIES AND THERE IS NO DEFAULT. HOWEVER, AO HAS NOT STATED ON WHOSE SALARIES THE TDS HAS NOT BEEN MADE AND HOW THE AMOUNT OF RS. 85,79,381/- WAS DETERMINED IN BOTH THE YEARS AND AS PER ASSESSEE IT WOULD CERTAINLY EXPLAIN IF DETAILS OF QUAN TIFICATION ITA NOS. 439 & 440/HYD/2017 :- 4 - : WAS MADE AVAILABLE. SINCE THESE ASPECTS REQUIRE VERI FICATION BY THE AO, WE ARE OF THE OPINION THAT THE ORDERS U/S. 2 01 AND 201(1A) ARE TO BE SET ASIDE AND ENTIRE ISSUE IS TO BE R ESTORED TO THE FILE OF AO FOR FRESH EXAMINATION AND DETERMINATION OF THE AMOUNT ON WHICH TDS HAS NOT BEEN MADE BY ASSESSEE AND CONSEQUENT INTEREST IF ANY. ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY AND THE EVIDENCE FURNISHED, EVEN IN THE C OURSE OF REMAND PROCEEDINGS, SHOULD BE EXAMINED PROPERLY. W ITH THESE DIRECTIONS, THE ISSUE IN BOTH THE YEARS IS RESTORED TO THE FILE OF AO FOR FRESH CONSIDERATION AS PER THE FACTS AND LAW. 5. IN THE RESULT, BOTH THE APPEALS OF ASSESSEE ARE ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JUNE, 2018 SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD, DATED 6 TH JUNE, 2018 TNMM ITA NOS. 439 & 440/HYD/2017 :- 5 - : COPY TO : 1. GREATER HYDERABAD MUNICIPAL CORPORATION (HEAD OF FICE), NEAR TANK BUND, LIBERTY CIRCLE, HYDERABAD. 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE-14(2)(TDS ), HYDERABAD. 3. CIT(APPEALS)-8, HYDERABAD. 4. CIT-(TDS), HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.