ECV MEDIA PVT. LTD., Jaipur V. ITO, Jaipur

ITA 812/JPR/2013

• Counselvise Citation: 81223114 RSA 2013
• Duration Of Justice: 2 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 29-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Section: 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 812/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 M/S. ECV MEDIA (P) LTD. 3/4 , JAMNA LAL BAJAJ MARG, C-SCHEME, JAIPUR CUKE VS. THE ITO TDS -1 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: JPREO 1636 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI PRAVEEN SARASWAT, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)III, JAIPUR DATED 10-09-2013 FOR THE ASSESSM ENT YEAR 2008-09 RAISING THEREIN SOLE GROUND AS UNDER:-. 1. THE LD. CIT(A) HAS WRONGLY CONFIRMED THE FINDINGS OF AO FOR CHARGING OF INTEREST U/S 201(1)/ 201(1A) OF THE I T ACT, OF RS. 2,37,930/- FOR ALLEGED TO BE LATE DEPOSITING THE TDS. ITA NO. 812/JP/2013 M/S. ECV MEDIA (P) LTD. VS. ITO, TDS -1, JAIPUR . 2 2.1 LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT LD. CIT(A) HAS FAILED TO APPRECIATE THE FACT ON RECORD THAT THE ASSESSEE HAS GIVEN CHEQUE NO. 725829 OF ANDHRA BANK, JAIPUR OF RS. 79,31,000/- TO COLLECTING BANK SBBJ, SMS HIGHWAY, JAIPUR AND SAME WAS DEBITED BY A SSESSEE'S BANK ON 31-05-2008 IN GOVT. A/C BUT DUE TO SUNDAY ON 1-06-2 008, THE COLLECTING BANK SBBJ AFFIXED SEAL IN CHALLAN 2-06-2008. THUS P AYMENT WAS IN TIME AND NO DEFAULT WAS ON THE PART OF THE ASSESSEE. THU S CHARGING OF INTEREST WAS NOT JUSTIFIED. 2.2 DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE SUBMITTED THAT SUCH DEMAND HAS BEEN RAISED BY THE AO FOR LATE DEPOSIT OF TDS AMOUNTING TO RS. 79,31,000/- ALLEGED TO BE PAID ON 02-06-2008 INSTEAD OF 31-05-2008. IT IS STATED THAT WHILE RAISING SUCH DE MAND, NO SHOW CAUSE NOTICE WAS ISSUED AND THAT THE ASSESSEE HAS FILED A N APPLICATION U/S 154 OF THE ACT AGAINST SUCH ORDER OF THE AO WHICH IS STILL PENDING. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE MADE PAYMENT OF RS. 79, 31,000/- THROUGH CHEQUE NO. 725829 DRAWN ON ANDHRA BANK, ASHOK MARG, JAIPUR AND THE BANK DEBITED THE ASSESSEE'S ACCOUNT ON 31-05-2008 I TSELF. HOWEVER THE COLLECTING BANK I.E. SBBJ ISSUED THE CHALLAN FOR SU CH DEPOSIT ON 02-01- 2008. THE ASSESSEE HAS ALSO FILED COPY OF BANK STAT EMENT WITH ANDHRA BANK INDICATING THAT THE AMOUNT OF RS. 79,31,000/- WAS DEBITED IN HIS ITA NO. 812/JP/2013 M/S. ECV MEDIA (P) LTD. VS. ITO, TDS -1, JAIPUR . 3 ACCOUNT ON 31-05-2008. THE ASSESSEE HAS ALSO FILED A CERTIFICATE ISSUED BY M/S. ANDHRA BANK DATED 6-04-2011 CERTIFYING THAT TH E CHEQUE NO. 725829 AMOUNTING TO RS. 79,31,000/- FAVOURING ITO WAS DEBI TED IN THE ACCOUNT OF ASSESSEE ON 31-05-2008. IT WAS ACCORDINGLY CONTE NDED THAT THE ASSESSEE HAS DEPOSITED COLLECTED TDS IN TIME BUT THE COLLECT ING BANK AFFIXED THE SEAL IN CHALLAN OF DATED 2-06-2008 BECAUSE 01-06-20 08 WAS SUNDAY AND THAT THE PAYMENT WAS MADE IN STIPULATED TIME. IT WA S ACCORDINGLY CLAIMED THAT THERE WAS NO DELAY IN DEPOSIT OF THE TDS AND I NTEREST U/S 201(1A) HAS WRONGLY BEEN CHARGED. THE ASSESSEE ALSO PLACED RELI ANCE ON THE FOLLOWING CASE LAWS:- (I) K. SARASWATTY VS. PSS SOMASUNDERAM CHETTIAL (1989) 4SCC 527 (II) CIT VS. KUMUDAM PUBLICATIONS (P) LTD. (1981) 128 ITR 617 (III) SAHARA AIRLINES LTD. VS. COMMISSIONER OF CUSTOMS (APPEALS) 110 TAXMAN 378 (GOVT. OF INDIA) 2.3 LD. CIT(A) IGNORED THE CBDT CIRCULAR NO. 261 DA TED 8-8-1979, PLACED AT PB PAGE NO. 12 INSTRUCTING INCOME TAX AUT HORITIES AS UNDER:- 1. IN TERMS OF RULE 80 OF THE COMPILATION OF THE TREASURY RULES, IF A CHEQUE OR DRAFT TENDERED IN PAYMENT OF GOVERNMENT DUES AND ACCEPTED UNDER THE PROVISIONS OF RULE 79 I S HONOURED ON PRESENTATION, THE PAYMENT IS DEEMED TO HAVE BEEN MA DE ON THE DATE ITA NO. 812/JP/2013 M/S. ECV MEDIA (P) LTD. VS. ITO, TDS -1, JAIPUR . 4 ON WHICH IT WAS HANDED OVER TO THE GOVERNMENT BANKE RS. THE NEED TO INDICATE ON THE CHALLAN THE DATE OF TENDER OF TH E CHEQUE/DRAFT WITH THE AUTHORISED PUBLIC SECTOR BANK, WAS DULY TA KEN NOTICE OF BY THE CENTRAL BOARD OF DIRECT TAXES AND AT THE REQUES T OF THE BOARD, THE RESERVE BANK ISSUED INSTRUCTIONS TO ALL THE AUT HORISED PUBLIC SECTOR BANKS IN NOVEMBER 1977 STIPULATING THAT THE RECEIVING BRANCH SHOULD BRAND EITHER AN INWARD STAMP OF RECEI PT AS SOON AS THE CHALLAN IS TENDERED OVER THE COUNTER, OR A DATE STAMPED WITH PROVISION FOR TWO DATES, I.E., THE DATE OF TENDER A ND THE DATE OF THE REALISATION OF THE CHEQUE. THE SPECIMEN OF THE DATE STAMP IS AS UNDER: 'DATE OF TENDER.............................. RECEIVED PAYMENT RS. ........................... RUPEES....................................... DATE OF REALISATION.......................... FOR.................................BANK AUTHORISED SIGNATORY' 2. APART FROM THE ABOVE PROCEDURE, THE CENTRAL BOAR D OF DIRECT TAXES HAS REVISED THE PROFORMAE OF THE VARIO US CHALLANS AND NEW CHALLAN FORMS WITH COLOUR BANDS ARE BEING PROGR ESSIVELY USED TO REPLACE THE EXISTING ONES. THE NEW CHALLANS FOR THE PAYMENT OF SELF-ASSESSMENT TAX HAVE ALREADY BEEN INTRODUCED FR OM APRIL 1, 1979 AND IT WILL BE NOTICED THEREFROM THAT THE COUN TERFOILS OF THE CHALLANS MEANT BOTH FOR THE INCOME-TAX OFFICER AND THE TAXPAYER CONTAIN SEPARATE COLUMNS FOR RECORDING THE DATE OF TENDER OF THE ITA NO. 812/JP/2013 M/S. ECV MEDIA (P) LTD. VS. ITO, TDS -1, JAIPUR . 5 CHEQUE AND DATE OF ITS REALISATION. THE OTHER CHALL AN FORMS WHICH ARE BEING INTRODUCED SHORTLY, ALSO CONTAIN SIMILAR COLUMNS. 3. IN VIEW OF THE FOREGOING, IT IS HOPED THAT THERE W ILL BE NO DIFFICULTY IN RECORDING, ON THE CHALLAN, THE DATE O F TENDER OF THE CHEQUE/DRAFT BY THE BRANCH OF THE AUTHORISED PUBLIC SECTOR BANK WHERE IT IS TENDERED FOR PAYMENT OF ANY OF THE DIRE CT TAXES. CIRCULAR: NO. 261 [F. NO. 385/61/79-IT(B)], DATED 8 -8-1979. 2.4 ASSESSEES CASE CLEARLY FALLS UNDER THE PURVIEW OF THIS CIRCULAR AS THE CHALLAN AND CHEQUE IN FAVOUR OF I T DEPARTMENT WAS TENDERED WITH SBBJ AND DEBITED TO ITS A/C. CONSEQUENTLY IMPUGNED INTEREST CHARGED U/S 201(1)/ 201(1A) IS UNJUSTIFIED AND DESERVES TO BE D ELETED. FURTHER RELIANCE IS PLACED ON DELHI ITAT JUDGMENT DATED 10-09-2015 I N THE CASE OF SANDIP BHAGAT VS. ACIT (ITA NOS. 6264, 6265 & 6266/ DEL/.2013) WHEREIN IT HAS BEEN HELD AS UNDER:- 13. THUS THE HON'BLE HIGH COURT OF MADRAS HAS HELD THAT DATE OF TENDING OF CHEQUE SHOULD BE T AKEN AS THE DATE OF PAYMENT OF TAX IF THE CHEQUE IS NOT DIS HONOURED. THE HON'BLE HIGH COURT HAS ALSO TAKEN NOTE OF THE D ECISION OF THE SUPREME COURT IN THE CASE OF DIT (EXEMPTION) VS. RAUNAQ EDUCATION FOUNDATION (2013) 350 ITR 420. COM ING TO THE FACTS OF THE CASE IN HAND, CHEQUES ISSUED HA VE NOT BEEN DISHONOURED AND SO THE FACTS OF THE CASE ARE EXACTL Y IDENTICAL TO THE CASE CITED ABOVE, AND THEREFORE, RESPECTFULL Y FOLLOWING ITA NO. 812/JP/2013 M/S. ECV MEDIA (P) LTD. VS. ITO, TDS -1, JAIPUR . 6 THE JUDGEMENT OF THE HON'BLE HIGH COURT OF MADRAS I N THE CASE OF CIT VS. REPCO HOME FINANCE LTD. (SUPRA) AND DIT (EXEMPTION) VS. RAUNAQ EDUCATION FOUNDATION, WE HOL D THAT INTEREST U/S 234C OF THE ACT SHOULD BE COMPUTED FRO M THE DATE OF PRESENTATION OF THE CHEQUE OF TAX PAYMENT. WE DIRECT THE ASSESSING OFFICER TO COMPUTE THE INTEREST U/S 2 34C OF THE ACT, ACCORDINGLY. 14. THUS THE GROUND NO. 4 OF THE ASSESSEE STANDS ALLOWED. AS THE GROUND NO. 4 IS ALLOWED, THE GROUND NOS. 2 AND 3 ARE RENDERED MERELY ACADEMIC IN NATURE AND HE NCE DO NOT REQUIRE ADJUDICATION AT THIS POINT. 15. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. 2.5 LD. DR SUPPORTED THE ORDER OF LOWER AUTHORITIE S. 2.6 I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. IT EMERGES FROM THE RECORD THA T ASSESSEE PRESENTED THE REQUISITE CHALLAN AND CHEQUE IN FAVOUR OF I T D EPARTMENT WITH SBBJ ON 31-5-2008. ASSESSEE HAS CONTROL OVER PRESENTATIO N OF CHEQUE AND NOT ON THE SUBSEQUENT INTERNAL PROCEDURE OF BANKS. THE CBDT CIRCULAR MENTIONED ABOVE WHICH IS BINDING ON THE LOWER I T A UTHORITIES IS CLEARLY APPLICABLE TO ASSESSEE CASE. BESIDE THE COORDINATE DELHI ITAT JUDGMENT IN THE CASE OF SANDIP BHAGAT (SUPRA) IS ALSO APPLIC ABLE WHICH DESERVES TO ITA NO. 812/JP/2013 M/S. ECV MEDIA (P) LTD. VS. ITO, TDS -1, JAIPUR . 7 BE FOLLOWED. IN VIEW OF THESE FACTS AND CIRCUMSTANC ES, THE IMPUGNED INTEREST CHARGED IS DELETED. ASSESSEES GROUND IS A LLOWED. 3.0 IN THE RESULT ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/11/20 15 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30 /11/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. ECV MEDIA (P) LTD. , JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, TDS -1, JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 812/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR