UCO BANK LTD, Nagpur V. DCIT, TDS CIRCLE-2, Nagpur

ITA 76/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1723 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 14-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: J M RANADE
• Keywords: Rectification of order; Period of limitation
• Section: 201(1)

Judgement Text

1 ITA NOS. 76 & 77/NAG/2014 AND ITA NO. 78/NAG/2013 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. S.NO. I.T.A. NO. ASSTT. YEAR 1. 76/NAG/2014 2006 - 07 2. 77/NAG/2014 2006 - 07 3. 78 /NAG/201 3 200 6 - 07 UCO BANK LTD. DY. COMMISSIONER OF INCOME - TAX, MAHAJAN WADI, V/S. TDS CIRCLE - 2, NAGPUR. SITABULDI, NAGPUR. APPELLANT. RESPONDENT. APPELLANT BY : SHRI J.M. RA NADE. RESPONDENT BY : SHRI NARENDRA KANE. DATE OF HEARING : 14 - 07 - 2015 DATE OF PRONOUNCEMENT : 21 ST AUGUST, 2015 O R D E R PER BE N CH: THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST RESPECTIVE ORDERS OF LEARNED CIT(APPEALS). THE COMMON ISSUE RAISED IS THAT THE LEARNED CIT(APPEALS) ERRED IN CONFIRMING THE LEVY OF SHORT DEDUCTION OF TDS AND INTEREST FOR SHORT DEDUCTION AND LATE PAYMENT IN THE RESPECTIVE APPEALS AS UNDER : 2 ITA NOS. 76 & 77/NAG/2014 AND ITA NO. 78/NAG/2013 ITA NO. S HORT DEDUCTION OF INTEREST FOR SHORT DEDUCTION TDS A ND FOR LATE PAYMENT . 76/NAG/2014 ` .39,370/ - ` .29,060/ - 77/NAG/2014 ` .11,310/ - ` . 8,180/ - 78/NAG/2013 ` .3,353/ - ` .5,265 / - 2. IN THESE CASES ASSESSM ENT WAS MADE AND ORDER WAS PASSED UNDER SECTION 201(1)/201(1A) FOR SHORT DEDUCTION OF TAX AND INTEREST THEREON UPON THE ASSESSEE FOR THE SECOND, THIRD AND FOURTH QUARTER FOR THE PREVIOUS YEAR ENDING 31 ST MARCH 2006. UPON ASSESSEES APPEAL, LEARNED CIT(APPEALS) HAS CONFIRMED THE ADDITIONS. 3. AT THE OUTSET LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT ORDER WAS PASSED UNDER SECTION 201(1) AND 201(1A) AFTER EXPIRY OF THE FOUR YEARS FROM THE END OF RELEVA NT FINANCIAL YEAR AND HENCE WAS BARRED BY LIMITATION. FOR THIS PROPOSITION LEARNED COUNSEL PLACED RELIANCE UPON THE DECISION OF ITAT, MUMBAI BENCH IN THE CASE OF STATE BANK OF INDIA V/S. ACIT REPORTED IN 106 ITD 589. 4. PER CONTRA LEARNED D.R. SUPPORTED T HE ORDERS OF THE AUTHORITIES BELOW. 5. UPON CAREFUL CONSIDERATION WE NOTE THAT IT IS UNDISPUTED THAT THE ORDERS PASSED BY THE ASSESSING OFFICER ARE AFTER THE EXPIRY OF FOUR YEARS FROM THE END OF THE RELEVANT FINANCIAL YEAR. IDENTICAL CASES WERE HELD TO B E BARRED BY LIMITATION BY THE ITAT, MUMBA I BENCH (SUPRA), WE MAY REFER THE RELEVANT PORTION OF THE DECISION MENTIONED AS UNDER : THE ORDERS PASSED BY THE AO UNDER SS. 201(1) AND 201(1A) AFTER EXPIRY OF FOUR YEARS FROM THE END OF RELEVANT FINANCIAL YEAR, WERE TIME - BARRED. MERELY BECAUSE A SURVEY WAS CONDUCTED BY THE DEPARTMENT, THE ORDERS PASSED BY THE AO AFTER THE EXPIRY OF THE PERIOD OF LIMITATION, CANNOT BE VALIDATED. ALL THE MATERIAL FACTS WERE AL READY AVAILABLE WITH THE DEPARTMENT AS THE ASSESSEE HAS CONSISTENTLY FOLLOWED THE SAME METHOD OVER A PERIOD OF ALMOST 50 YEARS. THE 3 ITA NOS. 76 & 77/NAG/2014 AND ITA NO. 78/NAG/2013 DETAILS RELATING TO TDS IN RESPECT OF EMPLOYEES HAVE TO BE FILED BY THE EMPLOYER EVERY YEAR IN THE PRESCRIBED FORM AS REQ UIRED UNDER S. 206. THUS, FOR EACH FINANCIAL YEAR THE PRESCRIBED RETURN OF TDS HAS TO BE FILED BY THE TAX DEDUCTOR WITHIN THE PRESCRIBED TIME - LIMIT THE AO WAS FREE TO SCRUTINIZE THESE ANNUAL RETURNS AND TO RAISE ANY QUERIES IF HE HAD ANY DOUBT ABOUT TH E PROPER DEDUCTION OF TAX OR THE PART OF THE ASSESSEE. THE SURVEY CONDUCTED ON 11 TH DEC., 2001 WILL NOT ALTER THE LEGAL POSITION WITH REGARD TO THE TIME LIMIT FOR PASSING OF ORDER UNDER SS. 201(1) AND 201(1A). THE ASSESSMENT ORDERS PASSED UNDER SS. 20 1(1) AND 201(1A) FOR THREE ASST. YRS. 1996 - 97 TO 1998 - 99 ARE TIME - BARRED AND ARE ACCORDINGLY, LIABLE TO BE QUASHED ON THIS GROUND. 6. THE FACTS IN THE PRESENT CASE ARE ALSO IDENTICAL. NO CASE HAS BEEN MADE OUT BEFORE US THAT THE HONBLE HIGH COURTS HA VE REVERSED THE AFORESAID DECISION OF THE TRIBUNAL. NOR ANY CONTRARY DECISION HAS BEEN PRODUCED BEFORE US. HONBLE APEX COURT IN THE CASE OF HONDA CIAL POWER PRODUCT S LTD. IN CIVIL APPEAL NO. 5412 OF 2007 HAS HELD THAT NON CONSIDERATION OF THE COORDINATE BENCH DECISION CAN RENDER THE DECISION OF THE TRIBUNAL LIABLE FOR RECTIFICATION OF MISTAKE APPARENT FROM RECORD. RESPECTFULLY FOLLOWING THE PRECEDENT AS ABOVE, WE QUASH THE ORDERS PASSED UNDER SECTION 201(1) AND 201(1A) IN THESE CASES AS TIME - BARRED. 7. I N THE RESULT, THESE APPEALS FILED BY THE ASSESSEE STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF AUGUST, 2015. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 21 ST AUGUST, 2015. 4 ITA NOS. 76 & 77/NAG/2014 AND ITA NO. 78/NAG/2013 COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR