CSB Bank Ltd( Formerly Catholic syrian Bank Ltd Kuruppanthara Branch), Kottayam V. The ITO (TDS), Thrissur

ITA 693/COCH/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4144 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 19-02-2020
• Assessment Year: 2011-2012
• Appeal Filed On: 03-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRITUNJAYA SHARMA
• Keywords: Period of limitation; TDS
• Section: 133A; 201(1); 201; 194A; 154; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFOR E SHRI GEORGE GEORGE K., JUDICIAL MEMBER I.T.A. NO S . 692 & 693 /COCH/201 9 ASSESSMENT YEAR S : 2010 - 11 & 2011 - 12 THE CATHOLIC SYRIAN BANK LTD., KURUMBILAVU BRANCH, THRISSUR - 680 564. [PAN /TAN : CHNCO 0236F] VS. THE INCOME - TAX OFFICER (TDS), TRICHUR. (ASSESSEE - APPELLANT) (REVENUE - RESPONDENT) ASSESSEE BY SHRI C. NARESH, CA REVENUE BY SHRI MRITUNJAYA SHARMA, SR. DR DATE OF HEARING 19/02/2020 DATE OF PRONOUNCEMENT 20 TH / 0 2 /20 20 O R D E R PER GEORGE GEORGE K.,JUDICIAL MEMBER: THESE APPEALS AT THE INSTANCE OF THE ASSESSEE /DEDUCTOR ARE DIRECTED AGAINST THE CONSOLIDATED ORDER OF THE CIT(A) DATED 25/09/2019 . THE RELEVANT ASSESSMENT YEARS ARE AY 2010 - 11 AND AY 2011 - 12. 2. COMMON ISSUES ARE RAISED IN THESE APPEALS, HE NCE THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER. IDENTICAL GROUNDS ARE RAISED IN THESE APPEALS. THE GROUNDS RAISED READ AS FOLLOWS: I.T.A. NO. 692 & 693/ COCH/201 9 2 I) THE LD. AO ERRED IN PASSING AN ORDER U/S. 201 AND 201(1A) OF THE INCOME TAX ACT, 196 1 AFTER TWO YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH STATEMENT U/S. 200 OF THE ACT HAS BEEN FILED AND HENCE THE SAME IS TO BE TREATED AS INVALID IN LAW AS LAID DOWN UNDER SECTION 201(3)(I) OF THE ACT. II) THE L D. CIT(A) ERRED IN CONFIRMING ORDE R OF THE AO TREATING APPELLANT AS ASSESSEE IN DEFAULT ONLY FOR THE REASON THAT NO EVIDENCE WAS PRODUCED FOR SUBMISSION OF FORM 15G/15H TO CIT - TDS WITHOUT APPRECIATING THAT APPELLANT CANNOT BE TREATED AS ASSESSEE IN DEFAULT ONLY BECAUSE OF NON - PRODUCTION OF EVIDENCE. III) THE A.O./CIT(A) ERRED IN HOLDING APPELLANT DID NOT SUBSTANTIATE THE CLAIM THAT THE PAYEES HAVE PAID TAXES WITHOUT APPRECIATING THAT, APPELLANT HAVING FILED ALL DETAILS OF INTEREST PAID ON DEPOSITS, IT IS FOR THE DEPARTMENT TO VERIFY IF TH E PAYEES HAVE PAID TAXES AND APPELLANT CANNOT BE TREATED AS ASSESSEE IN DEFAULT ONLY FOR ABOVE REASON. 3. THE BRIEF FACTS OF THE CASE ARE AS FOLLOW S : THE A PPELLANT - DEDUCTOR IS A BANK. THERE WAS A SURVEY U/S. 133A OF THE I.T. ACT CONDUCTED AT KURMP ILAVU BRANCH OF DEDUCTOR - BANK ON 28/01/2013. DURING THE COURSE OF SURVEY, MANY DISCREPANCIES WERE NOTED. SUMMONS WERE ISSUED TO THE BRANCH MANAGER O F THE APPELLANT - BANK REQUIRING TO FILE DETAILS OF INTEREST PAID / PAYABLE IN EXCESS OF RS.10,000/ - TO DEPOSI TORS , WHERE THERE WA S NO DEDUCTION OF TAX U/S. 194A OF THE I.T. ACT FOR BOTH THE ASSESSMENT YEARS, AY 2010 - 11 AND AY 2011 - 12. ON RECEIPT OF INFORMATION FROM THE SAID BRANCH OF THE APPELLANT - BANK, THE ASSESSING OFFICER PASSED ORDER S U/S. 201(1) AND 201(1A) OF THE I.T. ACT ON 23/07/2013 FOR THE ASSESSMENT YEAR 2010 - 11 MAKING APPELLANT LIABLE FOR RS. 13,11,636/ . F OR ASSESSMENT YEAR 2011 - 12 LIABILITY U/S. 201(1)/201(1A) OF THE I.T. ACT WAS DETERMINED AT RS.10,60,784/ - . SUBSEQUENTLY, I.T.A. NO. 692 & 693/ COCH/201 9 3 ON APPLICATION BY THE APPELL ANT/DEDUCTOR U/S. 154 OF THE I.T. ACT, THE DEMAND RAISED U/S. 201(1) AND 201(1A) OF THE I.T. ACT WAS REDUCED TO RS.1,93,411/ - AND RS.2,19,098/ - FOR THE ASSESSMENT YEARS 2010 - 11 AND 2011 - 12 RESPECTIVELY. 4. AGGRIEVED BY THE ORDERS PASSED U/S. 201(1) AND 201(1A) OF THE I.T. ACT, THE A PPELLANT - DEDUCTOR PREFERRED APPEALS TO THE FIRST APPELLATE AUTHORITY. BEFORE THE CIT(A), THE APPELLANT PRODUCED THE DO C UMENTS , NAMELY, DETAILS OF DECLARATION IN F ORMS 15F/15H WHICH ACCORDING TO THE APPELLANT WERE ALREADY SUB MITTED TO THE CIT(TDS) AS PER RULE 29C OF THE I.T. RULES, 1962. THE CIT(A) CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER . THE ASSESSING OFFICER SUBMITTED THE REMAND REPORT DATED 27/09/2018 AND ALSO ANOTHER REMAND REPORT DATED 29/08/2019. ON REC EIPT OF THE SAME , THE CIT(A) CA LLED FOR OBJECTIONS FROM THE A PPELLANT. THE A PPELLANT SUBMITTED THAT FOR AY 2010 - 11 AND AY 2011 - 12 THE CASE MAY BE DECIDED ON THE BASIS OF REMAND REPORT SUBMITTED BY THE ASSESSING OFFICER. ACCORDINGLY, THE DEMAND RAISED U/S . 201(1) AND INTEREST PAYABLE U/S. 201(1A) OF THE I.T. ACT WAS CONFIRMED TO THE EXTENT OF THE FIGURES MENTIONED IN THE REMAND REPORT SUBMITTED BY THE ASSESSING OFFICER FOR AY 2010 - 11 AND AY 2011 - 12. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE A PPELLANT - DEDUCTOR HAS PREFERRED THESE APPEALS BEFORE THE TRIBUNAL. THE SOLITARY CO NTENTION OF THE LD. AR IS THAT I.T.A. NO. 692 & 693/ COCH/201 9 4 THE ORDER S PASSED U/S. 201(1) AND 201(1A) OF THE I.T. ACT FOR AYS 2010 - 11 AND 2011 - 12 ARE BARRED BY LIMITATION BY VIRTUE OF SECTION 201(3) (I) OF THE I. T. ACT. 5.1 THE LD. DR ON THE OTHER HAND SUBMITTED THAT THE TRACES OF THE DEDUCTOR/ BANK SHOWED THAT IT HA D FILED TDS STATEMENTS FOR THE ASSESSMENT YEAR 2010 - 11 IN THE MONTH OF OCTOBER/NOVEMBER 2011 FOR ALL THE FOUR QUARTERS. FOR THE ASSESSMENT YEAR 201 1 - 12, THE LD. DR SUBMITTED BY REFERRING TO THE TRACES OF THE DEDUCTOR - BANK THAT IT HA D FILED TDS RETURN S U/S. 200 OF THE I.T. ACT ONLY IN THE MONTH OF AUGUST AND NOVEMBER, 201 1 FOR ALL THE FOUR QUARTERS. IT WAS SUBMITTED THAT AS PER THE PROVISIONS OF SECTI ON 201(3)(I) OF THE I.T. ACT, THE OFFICER HAD TIME UPTO 31 - 03 - 2014 TO PASS ORDER U/S. 201 OF THE I.T. ACT. HENCE IT WAS CONTENDED THAT THE ORDERS PASSED U/S. 201(1) AND 201(1A) OF THE I.T. ACT ON 23/07/2013 FOR AY 2010 - 11 AND AY 2011 - 12 ARE NOT BARRED BY L IMITATION . 6. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RECORD. THE ONLY CONTENTION RAISED BY THE LD. A R IN BOTH THE APPEALS IS THAT THE ORDERS PASSED U/S. 201(1) AND 201(1A) OF THE I.T. ACT FOR AYS 2010 - 11 AND 2011 - 12 ARE BARRED BY LIMITATION . SECTION 201(3) OF THE I.T. ACT FOR THE RELEVANT PERIOD READS AS FOLLOWS: 201(1).. (2). (3) NO ORDER SHALL BE MADE UNDER SUB - SECTION(1) DEEMING A PERSON TO BE AN ASSESSEE IN DEFAULT FOR FAILURE TO DEDUCT THE WHOLE OR ANY PART OF THE TAX FROM A PERSON RESIDENT IN INDIA, AT ANY TIME AFTER THE RECEIPT OF I.T.A. NO. 692 & 693/ COCH/201 9 5 (I) TWO YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE STATEMENT IS FILED IN A CASE WHERE THE STATEMENT REFERRED TO IN SECTION 200 HAS BEEN FILED; II) SIX YEARS FROM T HE END OF THE FINANCIAL YEAR IN WHICH PAYMENT IS MADE OR CREDIT IS GIVEN , IN ANY OTHER CASE: PROVIDED THAT SUCH ORDER FOR A FINANCIAL Y E AR COMMENCING ON OR BEFORE THE 1 ST DAY OF APRIL, 2007 MAY BE PASSED AT ANY TIME ON OR BEFORE THE 31 ST DAY OF MARCH, 20 11. 6.1 THE APPELLANT HA S ADMITTEDLY FILED TDS STATEMENTS U/S. 200 OF THE I.T. ACT FOR BOTH THE ASSESSMENT YEARS. THEREFORE, PROVISION REGARDING TIME LIMIT FOR PASSING ORDER U/S. 201 IS GOVERNED BY SECTION 201(3)(I) OF THE I. T . ACT. IF NO TDS STATEMENT IS FILED AS PER PROVISIONS OF SECTION 200 OF THE I.T. ACT, THEN EXTENSION OF PERIOD OF LIMITATION OF SIX YEARS WOULD APPLY U/S. 201(3)(II) OF THE I.T. ACT. (DURING THE RELEVANT PERIOD). FOR THE ASSESSMENT YEAR 2010 - 11, THE APPELLANT - DEDUCTOR HAD FILED T D S STATEMENT FOR ALL THE FOUR QUARTERS I N THE MONTH OF OCTOBER/NOVEMBER, 2011. FOR THE ASSESSMENT YEAR 2011 - 12, THE APPELLANT - DEDUCTOR HAD FILED TDS STATEMENTS U/S. 200 OF THE I.T. ACT I N THE MONTH OF AUGUST/NOVEMBER, 201 1 FOR ALL THE FOUR QUARTERS. THE P ERI O D OF LI M ITATION U/S. 201(3) (I) OF THE I.T. ACT IS TWO YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE TDS STATEMENT WAS FILED BY THE APPELLANT - DEDUCTOR . THEREFORE, THE PERIOD OF L IMITATION MENTIONED U/S. 201(3) (I) OF THE I.T. ACT WOULD EXPIRE ONLY ON 31/03/2014 GOING BY THE DATES OF TDS RETURNS FILED. THE ORDER S U/S. 201(1) AND 201(1A) OF THE ACT WERE PASSED O N 23/07/2013 FOR BOTH AYS , I.E., BEFORE THE PERIOD OF LIMITATION WHICH ENDED ON 31/03/2014 . HENCE , THE ORDERS PASSED U/S. I.T.A. NO. 692 & 693/ COCH/201 9 6 201(1) AND 20 1(1A) O F THE ACT FOR BOTH AYS ARE NOT BARRED BY LIMITATION. IT IS ORDERED ACCORDINGLY. 7. IN THE RESULT, THE APPEAL S OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 20 TH - 0 2 - 20 20 . SD/ - (GEORGE GEORGE K.) JUDICIAL MEMBER P LACE: KOCHI DATED: 20 TH FEBRUARY , 20 20 GJ COPY TO: 1 . THE CATHOLIC SYRIAN BANK LTD., KURUMBILAVU BRANCH, THRISSUR - 680 564. 2. THE INCOME - TAX OFFICER, TDS, TRICHUR. 3. THE COMMISSIONER OF INCOME - TAX (AP P EALS) , 4. THE COMMISSIONER OF INCOME - TAX, TDS, K OCHI 5. D. R., I.T.A.T., COCHIN BENCH, COCHIN. 6 . GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T., COCHIN