M/s. Sri Kannikaparameshwari Co-operative Bank Ltd, Davangere V. Income Tax Officer, TDS Ward, Davangere

ITA 692/BANG/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0586 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-07-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 06-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Keywords: Opportunity of being heard; TDS
• Section: 201(1); 194A

Judgement Text

ITA NO.692/BANG/2020 M/S. SRI KANNIKAPARAMESHWARI CO-OP BANK LTD., DAVAN GERE IN THE INCOME TAX APPELLATE TRIBUNAL CBENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO.692/BANG/2020 ASSESSMENT YEAR: 2012-13 M/S. SRI KANNIKAPARAMESHWARI CO-OP BANK LTD. # 165/2, 3 RD MAIN, P.J. EXTENSION DAVANGERE 570 002 PAN NO :AADTS3885J VS. ITO (TDS) WARD DAVANGERE APPELLANT RESPONDENT APPELLANT BY : SHRI SANDEEP, A.R. RESPONDENT BY : SMT. R. PREMI, D.R. DATE OF HEARING : 19.07.2021 DATE OF PRONOUNCEMENT : 19.07.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 14.9.2020 PASSED BY LD. CIT(A), DAVANGERE AND IT RE LATES TO THE ASSESSMENT YEAR 2012-13. 2. THE LD. A.R. SUBMITTED THAT THE ASSESSEE IS A CO -OPERATIVE BANK ENGAGED IN THE BUSINESS OF BANKING AND PROVIDI NG CREDIT FACILITIES TO ITS MEMBERS. THE A.O. PASSED THE IMP UGNED ORDER U/S 201(1) & 201(1A) OF THE INCOME-TAX ACT,1961 ['THE A CT' FOR SHORT] ON THE REASONING THAT THE ASSESSEE IS AN ASSESSEE IN DEFAULT, AS IT HAS ITA NO.692/BANG/2020 M/S. SRI KANNIKAPARAMESHWARI CO-OP BANK LTD., DAVAN GERE PAGE 2 OF 3 FAILED TO DEDUCT TAX AT SOURCE FROM THE INTEREST PA YMENTS MADE TO ITS MEMBERS IN TERMS OF PROVISIONS OF SECTION 194A OF THE ACT. ACCORDINGLY, THE A.O. RAISED A DEMAND OF RS.45.38 L AKHS U/S 201(1) AND INTEREST OF RS.16.34 LAKHS U/S 201(1A) OF THE A CT. ACCORDINGLY, THE AGGREGATE DEMAND RAISED UPON THE ASSESSEE WAS W ORKED OUT TO RS.61.72 LAKHS. HOWEVER, THE A.O. HAS TITLED THE O RDER AS ORDER UNDER SECTION 201(1A) OF THE INCOME TAX ACT, 1961. 3. THE LD. A.R. SUBMITTED THAT THE ASSESSEE FILED T HE APPEAL BEFORE LD. CIT(A) CHALLENGING THE DEMAND RAISED BY THE A.O. U/S 201(1) OF THE ACT. HOWEVER, THE LD. CIT(A) PROCEED ED TO DISPOSE OF THE APPEAL UNDER THE ERRONEOUS PRESUMPTION THAT THE ASSESSEE HAS FILED THE APPEAL CHALLENGING THE INTEREST CHARGED U /S 201(1A) OF THE ACT. ACCORDINGLY, THE LD. CIT(A) DID NOT ADJUDICAT E THE GROUNDS RAISED AGAINST THE DEMAND RAISED U/S 201(1) OF THE ACT. THE LD. A.R. FURTHER SUBMITTED THAT THERE WILL BE NO INTERE ST DEMAND U/S 201(1A) OF THE ACT IF THE DEMAND RAISED U/S 201(1) OF THE ACT IS CANCELLED. ACCORDINGLY, HE SUBMITTED THAT THE INTE REST CHARGED U/S 201(1A) OF THE ACT IS CONSEQUENTIAL IN NATURE IN TE RMS OF SEC.201(1A). ACCORDINGLY, THE LD. A.R. SUBMITTED TH AT THE MATTERS MAY BE RESTORED TO THE FILE OF THE LD. CIT(A) FOR A DJUDICATING THE SAID GROUND. 4. THE LD. D.R. ALSO SUBMITTED THAT THE LD. CIT(A) HAS NOT ADJUDICATED THE GROUNDS RAISED BY THE ASSESSEE AGAI NST THE DEMAND RAISED U/S 201(1) OF THE ACT. 5. HAVING HEARD THE RIVAL SUBMISSIONS, WE ARE OF TH E VIEW THAT THERE IS MERIT IN THE SUBMISSIONS OF THE ASSESSEE. AS RIGHTLY POINTED OUT BY THE LD. A.R., THE A.O. HAS TITLED TH E ORDER AS ORDER UNDER SECTION 201(1A) OF THE INCOME TAX ACT, 1961, WHICH IS A ITA NO.692/BANG/2020 M/S. SRI KANNIKAPARAMESHWARI CO-OP BANK LTD., DAVAN GERE PAGE 3 OF 3 TYPOGRAPHICAL ERROR SINCE THE DEMAND RAISED IN THE ORDER IS CONSISTED OF DEMAND RAISED U/S 201(1) OF THE ACT AN D INTEREST CHARGED U/S 201(1A) OF THE ACT. FURTHER, A PERUSAL OF THE GROUNDS URGED BY THE ASSESSEE BEFORE LD CIT(A) WOULD SHOW T HAT THE ASSESSEE HAS CHALLENGED THE DEMAND RAISED U/S 201(1 ) OF THE ACT. AS RIGHTLY POINTED OUT BY LD A.R, THE INTEREST CHAR GED U/S 201(1A) OF THE ACT SHALL BE CONSEQUENTIAL IN NATURE. ACCOR DINGLY, WE ARE OF THE VIEW THAT THE LD. CIT(A) HAS FAILED TO ADJUDICA TE THE GROUNDS URGED BEFORE HIM AGAINST THE DEMAND RAISED U/S 201( 1) OF THE ACT. SINCE THE LD. CIT(A) HAS NOT ADJUDICATED THOSE GROU NDS, WE DEEM IT PROPER TO RESTORE ALL THE ISSUES URGED BEFORE US TO THE FILE OF LD. CIT(A) FOR ADJUDICATING THEM AFRESH AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JUL, 2021. SD/- (N.V. VASUDEVAN) VICE PRESIDENT SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 19 TH JUL, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE