Bank of Baroda, Uttar Pradesh V. Addl. CIT (TDS), Ghaziabad

ITA 698/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7141 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 09-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Section: 201(1)

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F : NEW DELHI BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 698/DEL/2016 (ASSESSMENT YEAR: 2014 - 15 ) BANK OF BARODA, SECTOR - 29, NOIDA, UTTAR PRADESH, PAN: AAACB1534F VS. ADDL. CIT (TDS), CGO - I, HAPUR CHUNGI, GHAZIABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY: SHRI SL ANURAGI, SR. DR DATE OF HEARING 24/04 / 2018 DATE OF PRONOUNCEMENT 0 5 / 07 / 2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1 . THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF T HE LD CIT(A) - I, NOIDA DATED 30. 11.2015 FOR THE ASSESSMENT YEAR 2014 - 15 , WHEREIN HE HAS CONFIRMED THE ACTION OF THE LD AO FOR ASSESSMENT YEAR 2014 - 15 DATED 29.12.2014 PASSED U/S 201(1)/ 201(1A) OF THE INCOME TAX ACT, 1961, HOLDING THAT THE ASSESSEE IS ASSESSEE IN DEFAULT FOR NON DEDUCTION OF TAX AT SOURCE ON INTEREST PAID T O NEW OKHLA INDUSTRIAL DEVELOPMENT AREA (NOIDA) DURING THE FINANCIAL YEAR 2013 - 14 OF RS. 1392983025/ - WITHOUT DEDUCTION OF TAX AT SOURCE U/S 194 A OF THE ACT AND THEREBY WORKING OUT THE SHORT DEDUCTION OF TAX AT RS. 73732917/ - AND FURTHER CHARGING INTEREST U/S 201(1A) OF THE ACT OF RS. 11801769/ - . THE LD CIT(A) CONFIRMED THE ACTION OF THE LD AO IN A BUNCH OF 22 APPEALS WHERE IN THE ASSESSEE IS ONE OF THE PART Y . THE ASSESSEE AGGRIEVED WITH THE ORDER OF THE LD AO AND LD CIT(A) HAS PREFERRED THIS APPEAL . 2 . THE A SSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN DISMISSING THE APPEAL OF APPELLANT BANK AND RETAINING DEMAND OF RS.7,73,67,154/ - IN THE ORDER PASSED BY LD. ADDITIONAL PAGE | 2 COMMISSIONER O F INCOME TAX (TDS) GHAZIABAD U/S 20I(I)/20I(IA) OF THE I.T ACT, 1961. 2. THAT LD. CIT (APPEAL) NOIDA GROSSLY ERRED IN LAW AND ON FACTS IN HOLDING THAT THE ASSESSEE - DEDUCTOR WAS LIABLE TO DEDUCT TAX ON THE INTEREST PAID/CREDITED ON THE FDRS OF NOIDA AUTHOR ITY U/S 194A OF THE INCOME TAX ACT, 1961. 3. THAT LD. CIT (APPEAL) NOIDA ERRED IN LAW AND ON FACTS WITHOUT APPRECIATING THAT THE CASE OF APPELLANT IS COVERED BY NOTIFICATION NO. S.0.3489 [NO. I70 (F. NO. 12/164/68 - ITCC/ITJ).] DATED 22ND OCTOBER, 1970 ISSU ED BY THE CBDT IN PURSUANCE OF SECTION I94A(3)(III)(F) OF INCOME TAX ACT, 1961 WHICH REQUIRES NO TAX TO BE DEDUCTED AT SOURCE U/S 194A ON INTEREST CREDITED/PAID ON DEPOSITS. 4. THAT LD. CIT (APPEAL) NOIDA HAS FAILED TO TAKEN INTO CONSIDERATION BELOW GIVEN HONBLE ITAT JUDGMENTS ON VERY SIMILAR SUBJECT MATTER AS FOLLOWS: - A) ADDL. CIT (TDS), GHAZIABAD VS CANARA BANK SECTOR - 06, NOIDA IN ITAT DELHI BENCH F ITA NO. 1359/DEL/2014 B) CHIEF MANAGER, ORIENTAL BANK OF COMMERCE VS. ITO (TDS & SURVEY) IN ITAT, D ELHI BENCH I ITA NO. 2228/DEL/20IL. C) BRANCH MANAGER, JAMMU VS. DEPARTMENT OF INCOME TAX IN ITAT I.T.A NOS. 623 & 624 (ASR)/20IL IN ITAT AMRITSAR BENCH. 5. THAT THE LD CIT(A), NOIDA GROSSLY ERRED WHILE APPLYING IN MECHANICAL MANNER THE JUDGMENT OF HONBLE ALLAHABAD HIGH COURT IN WRIT PETITION TAX 1338 OF 2005 TITLED AS NOIDA AUTHORITY VS. CHIEF COMMISSIONER OF INCOME - TAX AND OTHERS 3 . IN THE GROUNDS OF APPEAL THE MAIN ISSUE CHALLENGE D BY THE ASSESSEE IS THAT THE COORDINATE BENCH IN CASE OF OTHER PARTIES IN WHOSE CASE THE LD CIT(A) CONFIRMED THE ORDER OF THE LD AO HAS BEEN REVERSED. 4 . DESPITE NOTICE NONE APPEARED ON BEHALF OF THE APPELLANT AND THEREFORE, THIS IS SUE IS DECIDED ON THE MERITS OF THE CASE AS PER FACTS AVAILABLE ON RECORD. 5 . THE LD DR RELIED UPON THE ORDERS OF THE LOWER AUTHORITIES. 6 . WE HAVE CAREFULLY CONSIDERED THE CONTENTION OF THE LD DR. IN THE PRESENT CASE DURING THE COURSE OF VERIFICATION BY THE L D ITO(TDS) THAT THE ASSESSEE HAS MADE PAYMENT OF INTEREST ON FIXED DEPOSITS DEPOSITS RECEIPTS OF RS. 1500 CRORES TO NOIDA BUT NO TAX AT SOURCE WAS DEDUCTED AND THEREFORE, THE LD AO WAS OF THE VIEW THAT PROVISIONS OF SECTION 194A APPLIES , THEREFORE, HE HELD THAT ASSESSEE IS IN DEFAULT TO THE EXTENT OF TDS NOT MADE U/S 201(1) AND FURTHER CHARGED INTEREST U/S 201(1A) OF THE ACT. PAGE | 3 THE LD CIT(A) CONFIRMED THE ORDER OF THE LD AO. ON THE IDENTICAL FACTS AND CIRCUMSTANCES OF THE CASE OF CANARA BANK, UCO BANK, PUNJAB AND SINDH BANK , STATE BANK OF PATIALA, CORPORATION BANK AND VIJAYA BANK HAVE ALL BEEN DECIDED IN FAVOUR OF THE BANK RELYING ON THE DECISION OF HON'BLE ALLAHABAD HIGH COURT IN CASE OF CIT VS. CANARA BANK 386 ITR 504. THE HON'BLE ALLAHABAD HIGH COURT HAS HE LD THAT THE PROVISIONS OF INDUSTRIAL AREA DEVELOPMENT ACT APPLIES TO THE NOIDA AND THEREFORE, IT IS ENTITLED TO EXEMPT ION OF TDS U/S 194A(1) OF THE ACT. THE LD DR COULD NOT SHOW US ANY OTHER CONTRARY DECISION. IN VIEW OF THIS , WE REVERSE THE ORDER OF THE L OWER AUTHORITIES AND ALLOW THE APPEAL OF THE ASSESSEE HOLDING THAT THE ASSESSEE WAS NOT OBLIGED TO DEDUCT THE TAX AT SOURCE OF PAYMENT OF INTEREST MADE TO NOIDA U/S 194A OF THE ACT. 7 . IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 0 5 / 07 / 2018 . - S D / - - S D / - ( AMIT SHUKLA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 0 5 / 07 / 2018 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI