PUNJAB NATIONAL BANK, Karnal V. DCIT, TDS Circle, Panchkula

ITA 7493/DEL/2018

AI Insights

The case involves Punjab National Bank (the assessee) appealing against an order by the Commissioner of Income Tax (Appeals), which affirmed the demand raised by the AO for non-deduction of TDS under Section 194A of the Income Tax Act, 1961, on interest payments made to various depositors. The AO had raised a demand of Rs. 1,31,903 under Section 201(1) and Rs. 1,10,797 as interest under Section 201(1A) of the Act. The assessee argued that the deductees had already declared the interest and paid the due tax, thus no demand was warranted. The Tribunal, considering the circumstances, decided to remand the case for further factual determination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112810 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 17-01-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 26-11-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law; TDS
• Section: 194A

Judgement Text

1 ITA no. 7493/Del/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND Dr. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA No. 7493/Del/2018 [Assessment Year: 2010-11] Punjab National Bank, G.T. Road, Karnal-132001 PAN:AAACP0165G Vs DCIT, TDS Circle, Panchkula. APPELLANT RESPONDENT Assessee represented by: Sh. S. Krishnan, Adv. Department represented by: Sh. S.L. Verma, Sr. DR Date of hearing 18.01.2023 Date of pronouncement .01.2023 O R D E R PER N.K.CHOUDHRY, JM: The assessee has preferred the instant appeal against the order dated 27.09.2018, passed by the Ld. Commissioner of Income tax (Appeals), Karnal, (in short “Ld. Commissioner”) u/s 250(6) of the Income Tax Act, 1961 (in short “the Act”), pertaining to the assessment year 2010-11. 2 ITA no. 7493/Del/2018 2. In the instant case it was observed by the AO that the assessee did not deduct the TDS u/s 194A of the Act on the payment made on account of interest to the following persons/payments, which are detailed below: Sr. No. Name and address /PAN Amount of interest TDS liable to be deducted @ 10% TDS dedu cted Balance deductible Interest u/s 201(1A) of the I.T. Act 1961 @ 1% per month0 Total TDS @ Interest payable 1. Madan pal Singh & Saroj Bala/ CTIPS0487G 226364/ - 22636/- 0 22636/- 19014/- 41,650/- 2. Rajinder kumar & Anupam/ ABEPG4516C 187121/ - 18712/- 0 18712/- 15718/- 34,430/- 3. Prem Chand /AGVPC0121B 699480/ - 69948/- 0 69948/- 58756/- 1,28,704/- 4. R.C. Sahunja & Chander Kanta/ AEKPS5204A 206079/ - 20,607/- 0 20,607/- 17309/- 37,916/- Total 1,31,903/- 1,10,797/- 2,42,700/- Therefore, the AO raised the demand of Rs. 1,31,903/- u/s 201(1) of the Act and Rs. 1,10,797/- as interest u/s 201(1A) of the Act @ 1% per month. 3. The assessee being aggrieved, challenged the said demand raised by the AO, before the learned Commissioner, who vide impugned order affirmed the said addition/demand by concluding as under: “I have examined the facts of the case, the 3 ITA no. 7493/Del/2018 submissions made by the assessee and the remand report of the A.O. It is seen that the appellant had not deducted tax on interest paid to 4 depositors in contravention of the provisions of Section 194A of the I.T. Act, 1961. No documentary evidences have been submitted by the appellant to bolster its case as to why tax was not required to be deducted. The assessee has, therefore, failed to discharge its onus in respect of the question of law raised by the A.O. In the circumstances, the addition is confirmed.” 4. The assessee being aggrieved is in appeal before us. 5. At the outset the learned AR of the assessee submitted that the deductees/parties to whom interest has been paid by the assessee, have already declared the interest paid by the assessee in their respective returns and consequently also paid the due tax thereon and, therefore, no such demand/addition is warranted. 6. We have given thoughtful consideration to the peculiar facts and circumstances. Though the assessee has failed to produce the relevant documents qua its claim before the authorities below, however, considering the peculiar facts and circumstances, we are inclined to remand the instant case to the file of the AO for factual determination by summoning the deductees/parties as to whether they have shown the amount of interest received from the assessee in their returns of income and paid the relevant tax or not. 4 ITA no. 7493/Del/2018 We clarify that primary onus would be on the assessee to establish/substantiate its case/claim as claimed before us. 7. In the result, the appeal filed by the assessee stands allowed for statistical purposes. Order pronounced in open court on 18.01.2023. Sd/- Sd/- (Dr. B.R.R. KUMAR) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Draft dictated 20.01.2023 Draft placed before author 23.01.2023 Approved Draft comes to the Sr. PS/PS Order signed and pronounced on File comes to P.S. File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk Date of dispatch of Order Date of uploading on the website