Appeal details
Counselvise Citation
[2016] 133 COUNSELVISE.COM (IT) 5696 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 2 month(s) 20 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
29-02-2016
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
11-02-2016
Assessment Year
2010-2011
Appeal Filed On
09-12-2013
Judgement Text
SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 718/IND/2013 A.Y.2010-11 SARVAJANIK JANKALYAN PARMARTHIK NYAS BHOPAL PAN AACTS 2301Q ::: APPELLANT VS ASSTT.COMMR. OF INCOME TAX 1(1) BHOPAL ::: RESPONDENT APPELLANT BY SHRI ASHISH GOYAL AND SHRI N.D. PATWA RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 11.2.2016 DATE OF PRONOUNCEMENT 2 9 .2.201 6 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL OF THE ASSESSEE EMANATES FROM THE ORDER DATED 26.9.2013 OF THE LEARNED CIT(A)-II, BHOPAL. SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 2 2. THE SUM AND SUBSTANCE OF THE GROUNDS OF APPEAL OF TH E ASSESSEE IS THAT THE CIT(A) WAS NOT JUSTIFIED IN GRANTI NG RELIEF FOR LATE PAYMENT OF TDS BY ONE MONTH ONLY INS TEAD OF TWO MONTHS AS INFERRED BY THE IT(TDS) THOUGH UNDER T HE CIRCUMSTANCES, FULL RELIEF IS TO BE ALLOWED TO THE ASS ESSEE. 3. WE HAVE HEARD BOTH THE SIDES. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS A PUBLIC TRUST REGISTERED WITH RE GISTRAR OF PUBLIC TRUST, BHOPAL, VIDE REGISTRATION DATED 17.4. 2000. THE ASSESSEE IS AN EDUCATIONAL TRUST AND RUNS VARIOUS EDUCATIONAL INSTITUTIONS. FOR THE YEAR, UNDER CONSIDER ATION, THE ASSESSEE HAS DEDUCTED TDS ON ALL PAYMENTS ON WHICH TAX DEDUCTION LIABILITY IS THERE AS PER THE PROVISION S OF THE ACT AND PAID THE SAME TO THE ACCOUNT OF THE GOVERNMENT IN TIME AS PRESCRIBED IN THE ACT. THE ASSESSEE HAS ALSO FI LED ALL THE QUARTERLY RETURNS. THE ASSESSEE TRUST RECEIVED INTIMATION U/S 200A OF THE ACT CREATING A DEMAND OF RS.2,26,135/- BEING THE INTEREST CALCULATED ON THE AMO UNT SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 3 OF TDS STATING THAT THE SAME IS DEPOSITED LATE IN THE ACCOUNT OF THE GOVERNMENT. AS PER THE INTIMATION, THE ASSESSEE HAS DEFAULTED FOR PAYMENT BY 2 MONTHS. ON APPEAL, THE LEARNED CIT(A) HELD AS UNDER :- 3.1 THUS, THE TIME LIMIT PROVIDED FOR DEPOSITING TDS IS ON OR BEFORE 30 TH DAY OF APRIL WHERE THE INCOME OR AMOUNT IS CREDITED OR PAID IN THE MONTH OF MARCH. I N THE APPELLANTS CASE, PAYMENTS HAVE BEEN MADE ON 31.3.2010. AS PER AMENDED PROVISIONS, TDS SHOULD HAVE BEEN DEPOSITED BY 30.04.2010. SINCE THE APPELL ANT HAS DONE THE SAME ON 31.05.2010, DELAY IS OF ONE MONTH ONLY AND NOT OF TWO MONTHS AS HAS BEEN COMPUTED BY THE A.O. IN THE IMPUGNED ORDER. THUS, T HE APPELLANT IS FOUND LIABLE TO PAY INTEREST U/S 2010( 1) & 201(1A) OF THE IT ACT ON THESE PAYMENTS FOR ONE MON TH ONLY. ACCORDINGLY, A.O. IS DIRECTED TO COMPUTE THE INTEREST FOR ONE MONTH WHILE GIVING EFFECT TO THIS APPEAL ORDER. 3. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE ASSESSEE TRUST HAS DEPOSITED TDS TO THE ACCOUN T OF THE GOVERNMENT IN TIME AND THERE IS NO DELAY IN DEPO SITING THE SAME. THE LD. COUNSEL FOR THE ASSESSEE ALSO SUBMI TTED THAT FOR THE TDS ON THE AMOUNT OF PROVISIONS MADE ON 3 1 ST MARCH, THE TIME LIMIT FOR DEPOSITING THE SAME IS 31 ST MAY SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 4 AND THE TRUST HAS DEPOSITED ALL THE TDS ON 31 ST MAY EVEN THOUGH THE INTEREST IS CHARGED ON THE AMOUNT OF TDS W HICH IS DEPOSITED ON 31 ST MAY. HE ALSO INVITED OUR ATTENTION TO NOTIFICATION NO. 41/2000 DATED 31.5.2010. ON THE OTHE R HAND THE LEARNED DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD BOTH THE SIDES. AFTER HEARING BOTH T HE SIDES, WE FIND THAT ON 31.5.2010 THE CBDT HAS AMENDED THE INCOME-TAX RULES, 1962 BY INCOME-TAX (SIXTH AMENDMENT) RULES, 2010, VIDE NOTIFICATION NO. 41/201 0 (F. NO. 142/27/2009-SO(TPL) DATED 31.5.2010 TO BE APPLICABLE WITH EFFECT FROM 1.4.2010 THE RELEVANT POR TION WHEREOF IS AS UNDER :- ' IN EXERCISE OF THE POW ERS CONFERRED BY SECTION 295 OF THE INCOMETAX ACT, 1961 (43 OF 1961), THE CENTRAL BOAR D OF DIRECT TAXES HER EBY MAKES THE FOLLOWING RULES FURTHER TO AMEND THE INCOME TAX RULES, 1962, NAMELY: 1. (1) THESE RULES MAY BE CALLED THE INCOMETAX (6 TH AMENDMENT) RULES, 2010. (2) THEY SHALL COME INTO FORCE ON THE 1ST DAY OF AP RIL, 2010. SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 5 2. IN THE INCOMETAX RULES, 1962, (A) FOR RULES 30, 31, 31A AND 31 AA THE FOLLOWING R ULES SHALL BE SUBSTITUTED , NAMELY: TIME AND MODE OF PAYMENT TO GOVERNMENT ACCOUNT OF TAX DEDUCTED AT SOURCE OR TAX PAID UNDER SUBSECTION (1A) OF SECTION 192. 3.(1) ALL SUMS DEDUCTED IN ACCORDANCE WITH THE PROV ISIONS OF CHAPTER XVII B BY AN OFFICE OF THE GOVERNMENT SHALL BE PAID TO THE CREDIT OF THE CENTRAL GOVERNMENT (A) ON THE SAME DAY WHERE THE TAX IS PAID WITHOUT PRODUCTION OF AN INCOMETAX CHALLAN; AND (B) ON OR BEFORE SEVEN DAYS FROM THE END OF THE MONTH IN WHICH THE DE DUCTION IS MADE OR INCOMETAX IS DUE UNDER SUBSEC TION (1A) OF SECTION 19 2, WHERE TAX IS PAID ACCOMPANIED BY AN INCOMETAX CHALLAN. (2) ALL SUMS DEDUCTED IN ACCORDANCE WITH THE PROV ISIONS OF CHAPTER XVII B BY DEDUCTORS OTHER THAN AN OFFICE OF THE GOVERNMENT SHALL BE PAID TO THE CRE DIT OF THE CENTRAL GOVERNMENT A) ON OR BEFORE 30TH DAY OF APRIL WHERE THE INCOME OR AMOUNT IS CREDITED OR PAID IN THE MONTH OF MARCH; AND (B) IN ANY OTHER CASE, ON OR BEFORE SEVEN DAYS FRO M THE END OF THE MONTH IN WHICH (I) THE DEDUCTION IS MADE; OR (II)INCOMETAX IS DUE UNDER SUBSECTION (1A) OF SEC TION 192. (3) NOTWITHSTANDING ANYTHING CONTAINED IN SU BRULE (2), IN SPECIAL C ASES, THE ASSESSING OFFICER MAY, WITH THE PRIOR APPROVAL OF THE JOINT COMMISSIONER, PERMIT QUARTERLY PAYMENT O F THE TAX DEDUCTED U NDER SECTION 192 OR SECTION 194A OR SECTION 194D OR SECTION 194H F OR THE QUARTERS OF THE FINANCIAL YEAR SPECIF IED TO IN COLUMN (2) OF THE TABLE BELOW BY THE DATE REFERRED TO I N COLUMN (3) OF THE SAID T ABLE: SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 6 SL.NO. QUARTER OF THE FINANCIAL YEAR ENDED ON DATE FOR QUARTERLY PAYMENT 1 30 TH JUNE 7 TH JULY 2 30 TH SEPTEMBER 7 TH OCTOBER 3 31 ST DECEMBER 7 TH JANUARY 4 31 ST MARCH 30 TH APRIL (4) IN THE CASE OF AN OFFICE OF THE GOVERNMENT, WHE RE TAX HAS BEEN PAID T O THE CREDIT OF THE CENTRAL GOVERNMENT WITHOUT THE PRODUCTION OF A CHAL LAN, THE PAY AND ACCOUNTS OFFICER OR THE TREAS URY OFFICER OR THE CHE QUE DRAWING AND DISBURSING OFFICER OR ANY OTHER PERSON BY WHATEVER NAME CALLED TO WHOM THE DEDUCTOR REPORTS THE TAX SO DEDUCTED AND W HO IS RESPONSIBLE FOR CREDITING SUCH SUM TO THE CREDIT OF THE CENTRA L GOVERNMENT, SHALL (A) SUBMIT A STATEMENT IN FORM NO. 24G WITHIN TEN DAYS FROM THE EN D OF THE MONTH TO THE AGENCY AUTHORISED BY THE DIRECTOR GENERAL O F INCOMETAX (SYSTEMS) IN RESPECT OF TAX DEDUCTED BY THE DEDUCTORS AND REPORTED TO HIM FOR THAT MONTH; AND (B) INTIMATE THE NUMBER (HEREINAFTER REFERRE D TO AS THE BOOK IDENT IFICATION NUMBER) GENERATED BY THE AGENCY TO EA CH OF THE DEDUCTORS IN RESPECT OF WHOM THE SUM DEDUCTED HAS BEEN CRE DITED. (5) FOR THE PURPOSE OF SUBRULE (4), THE D IRECTOR GENERAL OF INCOME TAX (SYSTEMS) SHALL SPECIFY THE PROCEDURES, FOR MATS AND STANDARDS FO R ENSURING SECURE CAPTURE AND TRANSMISSION OF DATA, AND SHALL ALSO BE RESPONSIBLE FOR THE DAYTODAY ADMINISTRATI ON IN RELATION TO FURNISH ING THE INFORMATION IN THE MANNER SO SPECIFIED. (6) (I) WHERE TAX HAS BEEN DEPOSITED ACCOMPA NIED BY AN INCOMETA X CHALLAN, THE AMOUNT OF TAX SO DEDUCTED OR COLLECTED SHALL BE DEP OSITED TO THE CREDIT OF THE CENTRAL GOVERNME NT BY REMITTING IT WITH IN THE TIME SPECIFIED IN CLAUSE (B) OF SUB RULE (1) OR IN SUBRULE (2) OR IN SUBRULE (3) INTO ANY BRANCH OF THE RESERVE BAN K OF INDIA OR OF THE S TATE BANK OF INDIA OR OF ANY AUTHORISED BANK; (II) WHERE TAX IS TO BE DEPOSITED IN ACCORDANCE WIT H CLAUSE (I), BY PERSONS REFERRED TO IN SUBRULE (1) OF RULE 125, T HE AMOUNT DEDUCTED SHALL SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 7 BE ELECTRONICALLY REMITTED INTO THE RESERVE BANK OF INDIA OR THE ST ATE BANK OF INDIA OR ANY AUTHORISED BANK ACCO MPANIED BY AN ELECTRO NIC INCOMETAX CHALLAN. (7) FOR THE PURPOSE OF THIS RULE, THE AMOUN T SHALL BE CONSTRUED AS ELECTRONICALLY REMITTED TO THE RESERVE BANK O F INDIA OR TO THE STATE BANK OF INDIA OR TO ANY AUTHORISED BANK, IF THE AMOUNT IS REMITTED B Y WAY OF (A) INTERNET BANKING FACILITY OF THE RESERVE BANK O F INDIA OR OF THE STATE B ANK OF INDIA OR OF ANY AUTHORISED BANK; OR (B) DEBIT CARD. (8)WHERE TAX IS DEDUCTED BEFORE THE 1ST DAY OF APRI L, 2010, THE PROVISIO NS OF THIS RULE SHALL APPLY AS THEY STOOD IMMEDIATE LY BEFORE THEIR SUBSTI TUTION BY THE INCOMETAX ( AMENDMENT)RULES, 2010. FROM THE ABOVE IT IS CLEAR THAT WHERE TAX IS DEDUCTED BEFORE THE IST DAY OF APRIL, 2010, THE PROVISIONS O F THIS RULE SHALL APPLY AS THEY STOOD IMMEDIATELY BEFORE THE SUBSTITUTION BY THE INCOME-TAX (AMENDMENT) RULES, 2010. WE, THEREFORE, FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE TRUST H AS DEPOSITED TDS TO THE ACCOUNT OF THE GOVERNMENT IN TI ME AND THERE IS NO DELAY IN DEPOSITING THE SAME. ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE LOWER SARVAJANIK JANKALYAN PARMARTHIK NYAS ITA NO. 718/IND/2013 8 AUTHORITIES WITH THE DIRECTION NOT TO CHARGE ANY INTER EST ON THE AMOUNTS OF TAX DEPOSITED BY THE ASSESSEE IN TI ME. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. PRONOUNCED IN OPEN COURT ON 29.2.2016 SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED - 29.2.2016 DN/
