Mahesh Urban Co-Operative Bank Ltd, Solapur V. Assistant Commissioner of Income Tax,Circle-1, Solapur, Solapur

ITA 865/PUN/2023

AI Insights

The case involves Mahesh Urban Co-operative Bank Ltd., which appealed against the order of the CIT(A) confirming a disallowance of Rs.3,61,044 under section 40(a)(ia) of the Income-tax Act, 1961. The disallowance was due to non-deduction of tax at source on interest paid to certain non-members registered as nominal members. The CIT(A) had previously noted a lack of evidence from the appellant to prove that the interest payments were made to members, including nominal members, and thus upheld the disallowance. The tribunal found that the CIT(A) did not adequately consider the details provided by the assessee and decided to set aside the order and remand the matter back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137724 (ITAT-PUNE)
• Duration Of Justice: 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-08-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 27-07-2023
• Other Referred Cases: Jalgaon DCC Bank Ltd. Vs. Union of India 265 ITR 423 (Bom.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Non-deduction of tax

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.865/PUN/2023 नधा रण वष / Assessment Year : 2012-13 Mahesh Urban Co-operative Bank Ltd., 128, Near Old Faujdar Chawadi, Shukrwar Peth, 413 002 Maharashtra PAN : AAAAM0511H Vs. The ACIT, Circle-1, Solapur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 08-05-2023 passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) Act in relation to the assessment year 2012-13. 2. The only issue raised in this appeal is against the confirmation of disallowance of Rs.3,61,044/- made by the Assessing Officer (AO) u/s.40(a)(ia) of the Act on account of non-deduction of tax at Assessee by Shri Pramod S. Shingte Revenue by Shri Ramnath P. Murkunde Date of hearing 10-08-2023 Date of pronouncement 11-08-2023 ITA No.865/PUN/2023 Mahesh Urban Coop. Bank Ltd. 2 source on interest paid to certain non-members who were registered as nominal members. 3. Tersely put, the facts of the case are that the Assessing Officer made the above disallowance on the reason that the assessee failed to deduct tax at source from the payment made to non- members on interest paid/credited. The ld. CIT(A) took note of the judgment of the Hon’ble Jurisdictional High Court in Jalgaon DCC Bank Ltd. Vs. Union of India 265 ITR 423 (Bom.) but did not provide any relief for the reason given in para 4.2 that “The appellant has not provided any evidence during the appellate proceeding to prove that the addition relates to members (Including nominal members).” Thus, it is evident that the ld. CIT(A) accepted, in principle, that the deduction of tax at source was not warranted in respect of payment of interest to members including nominal members. He, however, did not grant the suitable relief for the failure on the part of the assessee to furnish the details of interest paid. On the contrary, the ld. AR submitted that all such details were uploaded to the ld. CIT(A), who did not take cognizance of the same. In view of these facts, we are satisfied that the interest of justice would meet adequately if the impugned order is set-aside and the matter is restored to the file of the ld. CIT(A). We order ITA No.865/PUN/2023 Mahesh Urban Coop. Bank Ltd. 3 accordingly and direct him to decide the appeal afresh after allowing a reasonable opportunity of hearing to the assessee. 4. In the result, the appeal is allowed for statistical purpose. Order pronounced in the Open Court on 11 th August, 2023. Sd/- Sd/- ( PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 11 th August, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The respondent 3. The Pr.CIT concerned 4. DR, ITAT, ‘A’ Bench, Pune 5. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.865/PUN/2023 Mahesh Urban Coop. Bank Ltd. 4 Date 1. Draft dictated on 10-08-2023 Sr.PS 2. Draft placed before author 10-08-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *