Appeal Details
Counselvise Citation
[2022] 106 COUNSELVISE.COM (IT) 3610 (ITAT-COCHIN)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 13 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
24-07-2022
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Assessment Year
2013-2014
Appeal Filed On
11-04-2022
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri George George K, JM & Shri Laxmi Prasad Sahu, AM ITA No. 486/Coch/2022 : Asst. Year 2013-14 ITA No. 486/Coch/2022 Ambalavayal Branch 2013-2014 Q2 ITA No. 487/Coch/2022 Ambalavayal Branch 20103-2014 Q2 ITA No. 488/Coch/2022 Ambalavayal Branch 2013-2014 Q3 ITA No. 489/Coch/2022 Ambalavayal Branch 2013-2014 Q3 ITA No. 490/Coch/2022 Ambalavayal Branch 2013-2014 Q4 ITA No. 491/Coch/2022 Ambalavayal Branch 2013-2014 Q4 ITA No. 522/Coch/2022 Atholi Branch 2013-2014 Q4 ITA No. 523/Coch/2022 Atholi Branch 2013-2014 Q4 ITA No. 524/Coch/2022 Ayanchery Branch 2014-2015 Q2 ITA No. 525/Coch/2022 Ayanchery Branch 2014-2015 Q2 ITA No. 526/Coch/2022 Ayanchery Branch 20103-2014 Q3 ITA No. 527/Coch/2022 Ayanchery Branch 2013-2014 Q3 ITA No. 528/Coch/2022 Ayanchery Branch 2014-2015 Q4 ITA No. 529/Coch/2022 Ayanchery Branch 2013-2014 Q4 ITA No. 530/Coch/2022 Ayanchery Branch 2014-2015 Q1 ITA No. 531/Coch/2022 Ayanchery Branch 2013-2014 Q1 ITA No. 532/Coch/2022 Ayanchery Branch 2013-2014 Q2 ITA No. 533/Coch/2022 Ayanchery Branch 2013-2014 Q2 ITA No. 550/Coch/2022 Anamangad Branch 2013-2014 Q2 ITA No. 551/Coch/2022 Anamangad Branch 2013-2014 Q2 ITA No. 552/Coch/2022 Anamangad Branch 2013-2014 Q3 ITA No. 553/Coch/2022 Anamangad Branch 2013-2014 Q3 ITA No. 480/Coch/2022 Arikkulam Branch 2013-2014 Q2 ITA No. 481/Coch/2022 Arikkulam Branch 2013-2014 Q2 ITA No. 482/Coch/2022 Arikkulam Branch 2013-2014 Q3 ITA No. 483/Coch/2022 Arikkulam Branch 2013-2014 Q3 ITA No. 484/Coch/2022 Arikkulam Branch 2013-2014 Q4 ITA No. 485/Coch/2022 Arikkulam Branch 2013-2014 Q4 ITA No. 503/Coch/2022 Anakkampoyil Branch 2013-2014 Q2 ITA No. 504/Coch/2022 Anakkampoyil Branch 2015-2016 Q2 ITA No. 505/Coch/2022 Anakkampoyil Branch 2013-2014 Q3 ITA No. 506/Coch/2022 Anakkampoyil Branch 2013-2014 Q3 ITA No. 507/Coch/2022 Anakkampoyil Branch 2013-2014 Q4 ITA No. 508/Coch/2022 Anakkampoyil Branch 2013-2014 Q4 ITA No. 509/Coch/2022 Anakkampoyil Branch 2013-2014 Q2 ITA No. 545/Coch/2022 Areacode Branch 2013-2014 Q2 ITA No. 546/Coch/2022 Areacode Branch 2013-2014 Q2 ITA No. 547/Coch/2022 Areacode Branch 2013-2014 Q3 ITA No. 548/Coch/2022 Areacode Branch 2013-2014 Q3 ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 2 M/s. Kerala Gramin Bank FM Wing, KGB Head Office AK Road, Malappuram 676505 PAN: AACAK 1498D v. The Income Tax Officer (TDS) Trivandrum/Kollam/Kottayam, Alappuzha/Kochi/Trissur, Kozhikode/Palakkad/Kannur (Appellant) (Respondent) Appellant by : Sri.Hardik Chordia & Sri.Pratik Sadrani, CAs Respondent by : Smt.J.M.Jamunna Devi, Sr.DR Date of Hearing : 20.06.2022 Date of Pronouncement : 25.07.2022 ITA No. 513/Coch/2022 Ballussery Branch 20103-2014 Q2 ITA No. 514/Coch/2022 Ballussery Branch 20103-2014 Q2 ITA No. 515/Coch/2022 Ballussery Branch 2014-2015 Q3 ITA No. 516/Coch/2022 Ballussery Branch 2013-2014 Q3 ITA No. 517/Coch/2022 Ballussery Branch 2014-2015 Q4 ITA No. 518/Coch/2022 Ballussery Branch 2013-2014 Q4 ITA No. 519/Coch/2022 Ballussery Branch 2013-2014 Q1 ITA No. 520/Coch/2022 Ballussery Branch 2013-2014 Q1 ITA No. 493/Coch/2022 Achanambalam 2013-2014 Q3 ITA No. 494/Coch/2022 Achanambalam 2013-2014 Q4 ITA No. 495/Coch/2022 Achanambalam 2013-2014 Q4 ITA No. 475/Coch/2022 Alur Branch 2013-2014 Q4 ITA No. 535/Coch/2022 Ayiroor Branch 20103-2014 Q3 ITA No. 536/Coch/2022 Ayiroor Branch 2013-2014 Q3 ITA No. 537/Coch/2022 Ayiroor Branch 2013-2014 Q4 ITA No. 538/Coch/2022 Ayiroor Branch 2013-2014 Q4 ITA No. 540/Coch/2022 Attingal Branch 2013-2014 Q2 ITA No. 541/Coch/2022 Attingal Branch 2013-2014 Q2 ITA No. 542/Coch/2022 Attingal Branch 2013-2014 Q3 ITA No. 543/Coch/2022 Attingal Branch 2013-2014 Q3 ITA No. 496/Coch/2022 Balaramapuram Branch 2013-2014 Q2 ITA No. 497/Coch/2022 Balaramapuram Branch 2013-2014 Q2 ITA No. 498/Coch/2022 Balaramapuram Branch 2013-2014 Q3 ITA No. 499/Coch/2022 Balaramapuram Branch 2013-2014 Q3 ITA No. 500/Coch/2022 Balaramapuram Branch 2013-2014 Q4 ITA No. 501/Coch/2022 Balaramapuram Branch 2013-2014 Q4 ITA No. 511/Coch/2022 Adoor Branch 20103-2014 Q3 ITA No. 512/Coch/2022 Adoor Branch 2013-2014 Q3 ITA No. 479/Coch/2022 Aryanad Branch 2013-2014 Q3 ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 3 O R D E R Per Bench : These are group of 68 appeals at the instance of the assessee. The appeals are directed against separate orders of the CIT(A), all dated 16.12.2021. The relevant assessment years are 2013-2014 to 2015-2016. Common issues are raised in the appeals, hence, there were heard together and are being disposed of by this consolidated order. 2. The Registry had noted delay in filing these appeals (delay of around 40 days). The orders of the CIT(A) are all dated 16.12.2021. The Hon’ble Apex Court (in Miscellaneous Application No.21 of 2022 dated 10.01.2022), due to the pandemic situation had excluded the period from 15.03.2020 to 28.02.2022 in computing the period of limitation for any suit, appeal, application or proceedings. Further, as per judgment of the Hon’ble Apex Court, notwithstanding the actual balance period of limitation, all persons shall have a limitation period of 90 days from 01.03.2022. Further, the Hon’ble Supreme Court held that in the event the actual balance period of limitation remaining, with effect from 01.03.2022 is greater than 90 days, that larger period shall apply. In these cases, the appeals have been filed before ITAT in the month of March and April 2022 (i.e. well within the period of limitation contemplated by the Hon’ble Apex Court). Therefore, in view of the above judgment of the Hon’ble Apex ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 4 Court, there is no delay in filing these appeals and we proceed to dispose of the same on merits. 3. The solitary issue raised in all these appeals is whether the CIT(A) has erred in confirming the Assessing Officer’s order u/s 200A of the I.T. Act, wherein he levied late fees u/s 234E of the I.T. Act for various quarters. 4. The brief facts of the case are as follows: The assessee is Regional Rural Bank, having its branches in different parts in Kerala, formed with an object of serving rural people, in particular their banking needs. For the assessment years under consideration the assessee’s branches filed TDS returns in Form No.26Q and Form No.24Q for various quarters belatedly. The Assessing Officer levied fees and interest u/s 234E r.w.s. 200A of the I.T. Act for late filing of Form 26Q and 24Q of the said quarters. 5. Aggrieved by the orders of the Assessing Officer, the assessees filed appeals before the first appellate authority. However, the CIT(A) confirmed the A.O.’s orders for levying fees u/s 234E of the I.T. Act. The CIT(A) in principle, agreed that the matter is squarely covered in favour of the assessee. However, the CIT(A) rejected the plea of the assessee on the ground that since the appeal has filed u/s 154 of the I.T. Act, there must exists a mistake apparent from record. However, in the instant case there is no mistake apparent from record. Thus, the CIT(A) has not gone into the merits of the case. ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 5 6. Aggrieved by the orders of the CIT(A), the assessee has filed these appeals before the Tribunal. The learned AR submitted that the issue raised is squarely covered in favour of the assessee by the following judicial pronouncements:- (i) The judgment of the Hon’ble Kerala High Court in the case of Olari Little Flower Kuries (P.) Ltd. v. UOI reported in (2022) 440 ITR 26 (Ker.) (ii) The Hon’ble Kerala High Court judgment in the case of M/s.Sarala Memorial Hospital v. Union of India & The Income Tax Officer (TDS) [WP(C) No.37775 of 2018 of 18 th December, 2018] (iii) The judgment of the Hon’ble Kerala High Court in the case of Sanjeev Mathew & Co. v. ITO (TDS) (judgment dated 30.11.2021) (iv) The judgment of the Hon’ble Kerala High Court in the case of Headmaster, Government Upper Primary School v. ITO (TDS) (judgment dated 18.05.2022) (v) The order of the Cochin Bench of the Tribunal in the case of Travels Trails India Pvt. Ltd. V. ACIT TDS, Trivandrum, [ITA No168/Coch/2020 dated 10 th June, 2020] (vi) The order of the Cochin Bench of the Tribunal in the case of Sri. Sabir Ali v. ACIT in ITA No.200/Coch/2021 & Ors (order dated 20.05.2022) 7. Apart from the above submission, as regards the contention of the CIT(A) that there is no mistake apparent from record, the learned AR contended that non-consideration of decision of Hon’ble jurisdictional High Court in itself is a mistake apparent from record as held by the Hon’ble Apex ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 6 Court in the case of ACIT v. Saurashtra Kutch Stock Exchange Ltd. Reported in (2008) 305 ITR 227 (SC). 8. The learned Departmental Representative relied on the orders of the CIT(A). 9. We have heard rival submissions and perused the material on record. The assessee-branches have filed belatedly TDS returns for various quarters. The details of branch of the assessee, TAN No. of branch, financial year, the quarters, date of filing of TDS returns, due date of filing of original TDS, late fee levied u/s 234E of the I.T.Act, Intimation dates, date of CIT(A)’s orders etc., are enclosed as Annexure-A to this order. 9.1 The Assessing Officer cannot make any adjustment other than one prescribed in section 200A of the Act. Prior to 01.06.2015, there was no enabling provision in section 200A of the Act for making adjustment in respect of statement filed by the assessee with regard to tax deducted at source by levying fees u/s 234E of the Act. The Parliament for the first time enabled the Assessing Officer to make adjustment by levying fees u/s 234E of the Act with effect from 01.06.2015. The Hon’ble jurisdictional High Court in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India reported in (2022) 440 ITR 26 (Ker.), has held that since provision of section 200A of the I.T.Act was amended to enable computation of fee payable u/s 234E of the I.T.Act at the time of processing of return and said amendment came into effect from 01.06.2015 (in view of ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 7 CBDT Circular No.19 of 2015 dated 17.11.2015) intimations issued u/s 200A of the I.T.Act dealing with fee for belated filing of TDS returns for the period prior to 01.06.2015 were invalid and were to be set aside. Therefore, going by the dictum laid down by the Hon’ble jurisdictional High Court judgment in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India (supra), the levy of late fee for the various quarters for financial years 2013-2014 and 2014-2015 cannot be sustained in order passed u/s 200A of the I.T.Act, prior to 01.06.2015. 9.2 It is to be mentioned that the judgment of the Hon’ble Kerala High Court in the case of Sree Narayana Guru Smaraka Sangam Upper Primary School v. Union of India and Others reported in 392 ITR 457 (Ker.) was primarily concerned with the constitutional validity of section 234E of the I.T. Act. The Hon’ble Kerala Court was not adjudicating the issue whether the amendment to section 200A of the I.T.Act with effect from 01.06.2015 has retrospective effect or not. As mentioned earlier, the amendment to section 200A of the I.T.Act whether it applicable from 01.06.2015 has been decided in favour of the assessee by the judgment of the Hon’ble Kerala High Court in the case of Olari Little Flower Kuries (P.) Ltd. v. Union of India (supra). 9.3 The Hon’ble Kerala High Court in the case of M/s.Sarala Memorial Hospital v. Union of India (supra) has distinguished the Hon’ble Gujarat High Court judgment in the case of Rajesh Kourani v. Union of India reported in (2017) 83 ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 8 taxmann.com 137 (Gujarat). The Hon’ble Kerala High Court had disposed of the Writ Petition in favour of the assessee, stating that there is cleavage in judicial opinion and the judgment in the case of Shri Rajesh Kourani v. Union of India (supra) has not considered CBDT Circular No. 19 of 2015, which has clearly emphasized that the amendment would take effect only from 01.06.2016. Therefore, it was concluded by the Hon’ble Kerala High Court that the amendment relating to section 200A of the I.T.Act is prospective with effect from 01.06.2016. In view of the aforesaid reasoning and the judgments of the Hon’ble jurisdictional High Court, cited supra, we allow the claim of the assessee. 9.4 Before concluding, it is to be mentioned that the CIT(A) rejected the plea of the assessee on the ground that since there is no mistake apparent from record, the appeals filed by the assessee as against orders passed u/s 154 of the I.T.Act cannot be entertained and dismissed the appeals of the assessee, without going into the merits of the case. The judgment of the Hon’ble jurisdictional High Court in the case of M/s.Sarala Memorial Hospital v. Union of India & The Income Tax Officer (TDS) (supra) was rendered on 18.12.2018. The intimation u/s 200A of the I.T.Act and the orders of the CIT(A) were passed much subsequent to 18.12.2018. Non- consideration of judgment of the Hon’ble jurisdictional High Court in itself is a mistake apparent from record as held by the Hon’ble Apex Court in the case of ACIT v. Saurashtra Kutch ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 9 Stock Exchange Ltd. (supra). Therefore, we hold that the CIT(A) was not legally correct in dismissing the appeals of the assessee, in limine. It is ordered accordingly. 10. In the result, the appeals filed by the assessees are allowed. Order pronounced on this 25 th day of July, 2022. Sd/- (Laxmi Prasad Sahu) Sd/- (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER Kochi; Dated : 25 th July, 2022. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-. 4. The CIT, Cochin. 5. The DR, ITAT, Cochin. 6. Guard File. Asst.Registrar/ITAT, Cochin ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 10 Annexure – A Sr No Name of Branch of Kerala Gramin Bank TAN of Branch FY Qtr Form Type Actual Date of Filing of Original TDS Return 332 Ambalavayal Branch CHNS02446D 2012-13 Q2 24Q 26-Nov-12 333 Ambalavayal Branch CHNS02446D 2012-13 Q2 26Q 26-Nov-12 334 Ambalavayal Branch CHNS02446D 2012-13 Q3 24Q 19-Feb-13 335 Ambalavayal Branch CHNS02446D 2012-13 Q3 26Q 19-Feb-13 336 Ambalavayal Branch CHNS02446D 2012-13 Q4 24Q 18-Jul-13 337 Ambalavayal Branch CHNS02446D 2012-13 Q4 26Q 18-Jul-13 338 Atholi Branch CHNS00117F 2012-13 Q4 24Q 3-Jun-13 339 Atholi Branch CHNS00117F 2012-13 Q4 26Q 3-Jun-13 340 Ayanchery Branch CHNS02294F 2012-13 Q2 24Q 4-Jan-13 341 Ayanchery Branch CHNS02294F 2012-13 Q2 26Q 4-Jan-13 342 Ayanchery Branch CHNS02294F 2012-13 Q3 24Q 19-Mar-13 343 Ayanchery Branch CHNS02294F 2012-13 Q3 26Q 19-Mar-13 344 Ayanchery Branch CHNS02294F 2012-13 Q4 24Q 7-Jun-13 345 Ayanchery Branch CHNS02294F 2012-13 Q4 26Q 7-Jun-13 346 Ayanchery Branch CHNS02294F 2013-14 Q1 24Q 31-Jul-13 347 Ayanchery Branch CHNS02294F 2013-14 Q1 26Q 31-Jul-13 348 Ayanchery Branch CHNS02294F 2013-14 Q2 24Q 4-Nov-13 349 Ayanchery Branch CHNS02294F 2013-14 Q2 26Q 4-Nov-13 350 Anamangad Branch CHNS02380A 2012-13 Q2 24Q 27-Nov-12 351 Anamangad Branch CHNS02380A 2012-13 Q2 26Q 27-Nov-12 352 Anamangad Branch CHNS02380A 2012-13 Q3 24Q 31-Jan-13 353 Anamangad Branch CHNS02380A 2012-13 Q3 26Q 31-Jan-13 354 Arikkulam Branch CHNS02216E 2012-13 Q2 24Q 11-Mar-13 355 Arikkulam Branch CHNS02216E 2012-13 Q2 26Q 11-Mar-13 356 Arikkulam Branch CHNS02216E 2012-13 Q3 24Q 26-Apr-13 357 Arikkulam Branch CHNS02216E 2012-13 Q3 26Q 26-Apr-13 358 Arikkulam Branch CHNS02216E 2012-13 Q4 24Q 3-Jun-13 359 Arikkulam Branch CHNS02216E 2012-13 Q4 26Q 3-Jun-13 360 Anakkampoyil Branch CHNS02424C 2012-13 Q2 24Q 16-Apr-13 361 Anakkampoyil Branch CHNS02424C 2012-13 Q2 26Q 16-Apr-13 362 Anakkampoyil Branch CHNS02424C 2012-13 Q3 24Q 16-Apr-13 363 Anakkampoyil Branch CHNS02424C 2012-13 Q3 26Q 16-Apr-13 364 Anakkampoyil Branch CHNS02424C 2012-13 Q4 24Q 20-Jun-13 365 Anakkampoyil Branch CHNS02424C 2012-13 Q4 26Q 20-Jun-13 ITA No.486/Coch/2022 & Ors. M/s.Kerala Gramin Bank, Ambalavayal Branch & Ors. 11 366 Anakkampoyil Branch CHNS02424C 2014-15 Q2 26Q 29-Nov-14 367 Areacode Branch CHNS02566E 2012-13 Q2 24Q 11-Mar-13 368 Areacode Branch CHNS02566E 2012-13 Q2 26Q 11-Mar-13 369 Areacode Branch CHNS02566E 2012-13 Q3 24Q 16-May-13 370 Areacode Branch CHNS02566E 2012-13 Q3 26Q 16-May-13 371 Balussery Branch CHNS02293E 2012-13 Q2 24Q 4-Jan-13 372 Balussery Branch CHNS02293E 2012-13 Q2 26Q 4-Jan-13 373 Balussery Branch CHNS02293E 2012-13 Q3 24Q 19-Feb-13 374 Balussery Branch CHNS02293E 2012-13 Q3 26Q 19-Feb-13 375 Balussery Branch CHNS02293E 2012-13 Q4 24Q 4-Jun-13 376 Balussery Branch CHNS02293E 2012-13 Q4 26Q 4-Jun-13 377 Balussery Branch CHNS02293E 2013-14 Q1 24Q 31-Jul-13 378 Balussery Branch CHNS02293E 2013-14 Q1 26Q 31-Jul-13 379 Achanambalam Branch CHNS02621D 2012-13 Q3 26Q 1-Feb-13 380 Achanambalam Branch CHNS02621D 2012-13 Q4 26Q 10-Jun-13 381 Achanambalam Branch CHNS02621D 2012-13 Q4 27Q 10-Jun-13 382 Alur Branch CHNS02708G 2012-13 Q4 24Q 10-Jun-13 383 Ayiroor Branch TVDS01661C 2012-13 Q3 24Q 7-Feb-13 384 Ayiroor Branch TVDS01661C 2012-13 Q3 26Q 7-Feb-13 385 Ayiroor Branch TVDS01661C 2012-13 Q4 24Q 5-Jun-13 386 Ayiroor Branch TVDS01661C 2012-13 Q4 26Q 5-Jun-13 387 Attingal Branch TVDS03300D 2012-13 Q2 24Q 31-Oct-12 388 Attingal Branch TVDS03300D 2012-13 Q2 26Q 31-Oct-12 389 Attingal Branch TVDS03300D 2012-13 Q3 24Q 8-Feb-13 390 Attingal Branch TVDS03300D 2012-13 Q3 26Q 8-Feb-13 391 Balaramapuram Branch TVDS03435F 2012-13 Q2 24Q 3-Nov-12 392 Balaramapuram Branch TVDS03435F 2012-13 Q2 26Q 3-Nov-12 393 Balaramapuram Branch TVDS03435F 2012-13 Q3 24Q 7-Feb-13 394 Balaramapuram Branch TVDS03435F 2012-13 Q3 26Q 7-Feb-13 395 Balaramapuram Branch TVDS03435F 2012-13 Q4 24Q 12-Jun-13 396 Balaramapuram Branch TVDS03435F 2012-13 Q4 26Q 12-Jun-13 397 Adoor Branch TVDS04032A 2012-13 Q3 24Q 7-Feb-13 398 Adoor Branch TVDS04032A 2012-13 Q3 26Q 7-Feb-13 399 Aryanadu Branch TVDS04331F 2012-13 Q3 24Q 7-Feb-13
