State Bank Of India, Shahjahanpur V. The Income Tax Office (TDS), Bareilly

ITA 545/LKW/2014

• Counselvise Citation: 54523714 RSA 2014
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-09-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 24-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R K RAM
• Keywords: Opportunity of being heard; Principle of natural justice; Bonafide belief

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.545/LKW/2014 ASSESSMENT YEAR:2006 - 07 INCOME TAX OFFICER (TDS), BAREILLY. VS STATE BANK OF INDIA, ABD, PUWAYAN, KHUTAR ROAD, SHAHJAHANPUR. TAN:LKNS06402E (RESPONDENT) (APPELLANT) SHRI K. R. RASTOGI, C. A. APPELLANT BY SHRI R. K. RAM, D. R. RESPONDENT BY 22/09/2014 DATE OF HEARING 28 /11/2014 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A), BAREILLY DATED 02/04/2014 FOR THE ASSESSMENT YEAR 2006 - 2007 (4 TH QUARTER, 24Q). 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. THE LD. C.I.T. (APPEALS) WHILE CONFIRMING THE ORDER OF LD. I.T.O. (T.D.S.) U/S 201(1)/201(1A) OF I.T. ACT DID NOT APPRECIATE THE WRITTEN SUBMISSION DATED 26.02.2014 SUBMITTING THROUGH E FILING AS PER ID PROVIDED BY HIM AS PER HIS DIRECTIONS. 2. THE LD. C.I.T. (APPEALS) DID NOT APPRECIATED THAT ON 26.02.2014 THE ASSESSEE BANK COUNSEL APPEARED AND IT WAS DIRECTED TO FILE WRITTEN SUBMISSIONS WITH RESPECT TO THE SAID APPEAL THROUGH E FILING IN ID PRABH [e-mail] . 2 3. THE ASSESSEE BANK WAS UNDER THE BONAFIDE BELIEF THAT THE COUNSEL OF THE BANK IS LOOKING AFTER THE APPEAL HENCE DUE TO MISUNDERSTANDING OF CONCERN OFFICER, NOTICE WAS NOT RECEIVED BY BANK. 4. THE LD. C.I.T.(A) DID NOT APPRECIATE D THAT THERE WAS NO SHORT DEPOSIT OF RS.3,76,130/ - AS THE DEMAND AND INTEREST THEREON RS.2,46,460/ - WAS CREATED ON ACCOUNT OF 'MISTMATCH ' OF T.D.S. CHALLAN IN 'OLTAS' DUE TO MISTAKE IN CHALLAN NUMBER AND BSR CODE AND FOR THIS LD. A. O. WAS REQUESTED TO RE CTIFY THE SAID DEMAND. 5. THAT SHORT DEDUCTION OF RS. 45,860 - 00 AND INTEREST THERE ON RS.27,520/ - IS DUE TO WRONG FEEDING OF COMPUTATION OF SALARY OF EMPLOYEES IN T.D.S. RETURN WITH RESPECT TO THE TRANSFERRED EMPLOYEES DURING THE YEAR WHICH WAS CORRECTED SUBSEQUENT BY ISSUING CORRECTED FORM NO. 16. 6. THAT THE DEMAND CREATED IS HIGHLY EXCESSIVE, CONTRARY TO THE FACTS, LAW AND PRINCIPLE OF NATURAL JUSTICE AND WITHOUT PROVIDING SUFFICIENT TIME AND OPPORTUNITY TO HAVE ITS SAY ON THE REASONS RELIED UPON. 3. AT THE VERY OUTSET , IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT THE ISSUE SHOULD BE RESTORED BACK TO CIT(A) FOR FRESH DECISION. HE SUBMITTED THAT ON PAPER BOOK PAGE NO. 1 & 2 IS THE REPLY SENT BY THE ASSESSEE TO CIT(A) DATED 26/02/2014. HE FURTHER SUBMITTED THAT THE REPLY WAS SENT THROUGH E - MAIL AND ACKNOWLEDGEMENT IS APPEARING ON PAGE NO. 3 OF THE PAPER BOOK. HE ALSO SUBMITTED THAT THE CIT(A) HAS DECIDED THE ISSUE WITHOUT CONSIDERING THE REPLY OF THE ASSESSEE AND THEREFORE, THE MATTER SHOULD GO BACK TO CIT(A). 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE APPEAL OF THE ASSESSEE WAS DECIDED BY CIT(A) ON THE BASIS THAT THERE IS NO M ATERIAL AVAILABLE WITH THE ASSESSEE TO PURSUE THE APPEAL BUT THE REPLY OF THE ASSESSEE DATED 26/02/2014 WAS NOT CONSIDERED BY CIT(A) ALTHOUGH IMPUGNED ORDER 3 HAS BEEN PASSED BY HIM ON 02/04/2014. UNDER THESE FACTS, WE SET ASIDE THE ORDER OF CIT(A) AND REST ORE THE MATTER BACK TO HIM FOR FRESH DECISION AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 / 11/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR