PRINCIPAL MEDICAL OFFICER, Dausa V. ITO, Alwar

ITA 546/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5361 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 04-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 546/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 M/S. PRINCIPAL MEDICAL OFFICER ZILA HOSPITAL, LALSOT ROAD DAUSA CUKE VS. THE ITO (TDS ) ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: JPRP02307D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : WRITTEN SUBMISSIONS JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA , JCIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27/01/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 23 /03/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A), ALWAR, DATED 02-05-2014 FOR THE ASSESSMENT YEAR 2010-11 WHEREIN THE SOLITARY GROUND RAISED BY THE ASSESSEE IS AS UNDER:- THE LD. CIT(A) HAS GROSSLY ERRED IN LAW BY REJECT ING THE APPLICATION FOR CHARGING INTEREST ON TDS DEPOSITED DURING THE YEAR FOR DEPOSIT OF TDS ON AVERAGE BASIS OF RS. 25,506/- . THE ORDER OF THE LD. CIT(A) IS BASED ON SURMISES, CONJECTURES, A RBITRARY AND CAPRICIOUS AND BAD IN LAW AS SUCH THE SAME DESERVES TO BE CANCELLED. ITA NO. 546/JP/2014 M/S. PRINCIPAL MEDICAL OFFICER, ZILA HOSPITAL, DAUS A VS. ITO (TDS), ALWAR . 2 2.1 NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVE R, THE WRITTEN SUBMISSION IS FILED BY THE ASSESSEE. CONSEQUENTLY W E ARE LEFT WITH NO ALTERNATIVE BUT TO DECIDE THE APPEAL ON MERITS, CON SIDERING ASSESSEES WRITTEN SUBMISSIONS AND AFTER HEARING LD. DR AND AF TER PERUSAL OF THE MATERIALS AVAILABLE ON RECORD. 3.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A GOVT. DISTRICT HOSPITAL. DURING THE VISIT OF ITO (TDS) ON 19-01-20 12, IT WAS FOUND THAT THOUGH THE TDS HAS BEEN DEDUCTED FROM THE STAFF SAL ARY YET FROM THE MONTH OF APRIL,10 TO NOV. 2010, THE SAME HAS NOT BE EN DEDUCTED ON AVERAGE BASIS. ASSESSEE FILED ITS EXPLANATION IN TH IS BEHALF, NOT ACCEDING TO SAME, THE DEMAND IN QUESTION WAS RAISED. 3.2 BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTE R BEFORE THE LD. CIT(A) WHO DISMISSED THE APPEAL OF THE ASSESSEE ON THE ISSUE IN QUESTION BY FOLLOWING OBSERVATIONS. 4.6 IT MAY BE SEEN FROM THE ABOVE CHART THAT THE TDS PAYMENTS ON SALARIES ARE SKEWED HEAVILY AGAINST THE INITIAL NINE MONTHS OF THE FINANCIAL YEAR AND HUGE DISPROPORTIONATE PAYMENTS OF TDS HAVE BEEN MADE IN THE LAST THREE MONTHS OF THE YEAR. IT IS SPECIFICALLY A GAINST THIS TENDENCY THAT THE PROVISIONS OF SECTION 201(1A) OF THE I.T. ACT HAVE BEEN BROUGHT ON THE STATUTE. THE APPELLANT HAS NOT BEEN ABLE TO FILE ANY EVIDENCE TO SUBSTANTIATE ITS CONTENTIONS. THEREFORE, I HOLD THAT INTEREST OF RS. 25,506/- U/S 201(1A) OF THE I.T. ACT HAS BEEN RIGHTLY LEVIED BY THE AO IN T HIS CASE. ACCORDINGLY, THE DEMAND OF RS. 25,506/- RAISED BY T HE ITO (TDS) IS CONFIRMED. ITA NO. 546/JP/2014 M/S. PRINCIPAL MEDICAL OFFICER, ZILA HOSPITAL, DAUS A VS. ITO (TDS), ALWAR . 3 3.3 THE ASSESSEE IN ITS WRITTEN SUBMISSIONS HAS PRA YED THAT SECTION 192 OF THE ACT CLEARLY POSTULATES THAT THE EMPLOYER CAN REDUCE OR INCREASE THE TDS AMOUNT FROM THE PAYMENT OF SALARY FOR PROPE R DEDUCTION OF TDS FROM SALARY OF EMPLOYEES FOR THE WHOLE YEAR. IN ASS ESSEE'S CASE, THE ASSESSEE HAS DEDUCTED TDS FROM THE SALARY OF EMPLOY EES ON MONTHLY BASIS AND HE INCREASED TDS AMOUNT FROM THE SALARY O F ITS EMPLOYEES DURING THE MONTH OF FEB. 2011 AND MARCH 2011 FOR PR OPER DEDUCTION OF TDS FROM SALARY FOR THE WHOLE YEAR. THERE WAS NO AN Y SHORTAGE OF TDS FROM THE SALARY. THE DETAILS OF SALARY PAID TO EMPL OYEES AND COPY OF FORM NO.16 ISSUED TO THE EMPLOYEES FOR THE FINANCIAL YEA R 2010-11 DEMONSTRATE THAT THERE WAS NO DEFICIT IN DEDUCTION OF TAX FROM THE SALARY. THE ASSESSEE DDO HAVING FULFILLED HIS RESPONSIBILITY AS PER SECT ION 192 OF THE I.T. ACT, 1961, THEREFORE, DDO IS NOT IN DEFAULT IN RELATION TO AFORESAID SECTION. THE TOTAL TDS PAID AT THE END OF THE YEAR IS EQUAL TO A CTUAL LIABILITY AND DEFICIT IF AT ALL ANY HAS BEEN MADE CONSEQUENTLY THERE IS N O QUESTION TO HOLD THAT THE ASSESSEE WAS IN DEFAULT IN DEDUCTING THE TDS IN ANY MANNER. THEREFORE, THE DEMAND RAISED IN QUESTION MAY BE CAN CELLED. 3.4 THE LD. DR RELIED ON THE ORDERS OF THE LOWER AU THORITIES. 3.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I FIND MERIT IN THE WRITTEN SU BMISSION OF THE ASSESSEE ITA NO. 546/JP/2014 M/S. PRINCIPAL MEDICAL OFFICER, ZILA HOSPITAL, DAUS A VS. ITO (TDS), ALWAR . 4 GOVT. HOSPITAL THAT WHEN TDS HAS BEEN RIGHTLY DEDUC TED AT THE END OF THE YEAR AND NO DEFICIENCY IS OBSERVED EXCEPT IN SO ME MONTHS AND FOR WANT OF RELEVANT DETAILS, THE TDS WAS NOT DEDUCTED ON AVERAGE SALARY BASIS. CONSIDERING ALL THESE FACTS AND CIRCUMSTANCE S OF THE CASE, THE BENCH FINDS THAT ASSESSEE HOSPITAL IS NOT IN DEFAUL T FOR DEDUCTION OF TDS. IN VIEW THEREOF, THE DEMAND RAISED IN QUESTION IS C ANCELLED. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED. 4.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 /03/20 16. SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 23 /03/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. PRINCIPAL MEDICAL OFFICER, ZILA HOSPITAL, DAUSA 2. IZR;FKHZ@ THE RESPONDENT- THE ITO (TDS), ALWAR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 546/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR ITA NO. 546/JP/2014 M/S. PRINCIPAL MEDICAL OFFICER, ZILA HOSPITAL, DAUS A VS. ITO (TDS), ALWAR . 5