PUNJAB NATIONAL BANK, JAIPUR V. ASSISTANT COMMISSIONER OF INCOME TAX (TDS), JAIPUR

ITA 887/JPR/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1796 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 13-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUP SINGH JCIT DHK
• Section: 201(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S B, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO. 887/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2009-10 PUNJAB NATIONAL BANK, RAJASTHAN HOUSING BOARD, PRATAP NAGAR, JAIPUR. CUKE VS. ASSISTANT COMMISSIONER OF INCOME TAX (TDS), JAIPUR. PAN/TAN NO. JPRP 00577 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SANDEEP JHANWAR (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ANUP SINGH (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19/11/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 20/11/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 19/03/2018 OF LD. CIT(A)-3, JAIPUR ARISING FROM ORD ER PASSED U/S 201(1)/201(1A) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) FOR THE A.Y. 2009-10. THE ASSESSEE HAS RAISED SOLE EFFECTIV E GROUND OF APPEAL, WHICH IS AS UNDER: 1. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN UPHOLDING A DEMAND OF RS. 2,83,592/- RAISE D BY ACIT(TDS), JAIPUR ON ACCOUNT OF INTEREST U/S 201(1A) OF THE IT ACT, 1961. 2. THE ASSESSEE CRAVES THE RIGHT TO ADD, AMEND, ALT ER OR MODIFY ANY OF THE GROUND OF APPEAL. ITA 887/JP/2018_ PUNJAB NATIONAL BANK VS. ACIT(TDS) 2 2. THE ASSESSEE IS A PUBLIC SECTOR NATIONALIZED BANK AND HAS MADE PAYMENTS INTER ALIA TO SOFTWARE TECHNOLOGY PARKS OF I NDIA (STPI), JAIPUR. THE ASSESSING OFFICER WHILE PASSING THE ORDER U/S 201 (1)/201(1A) OF THE ACT HAS HELD THAT THE ASSESSEE IN DEFAULT FOR WANT O F DEDUCTION OF TDS ON THE PAYMENT OF INTEREST OF RS. 28,60,035/- TO STPI. THE ASSESSING OFFICER HELD THAT THE PAYMENTS IN QUESTION ARE SUBJECTED TO TDS U/S 194A OF THE ACT AND FAILURE ON THE PART OF THE ASSESSEE AS REFE RRED THE ASSESSEE TO BE LIABLE AS THE ASSESSEE IN DEFAULT. 3. THE ASSESSEE CHALLENGED THE ACTION OF THE ASSESSI NG OFFICER BEFORE THE LD. CIT(A). THE LD. CIT(A) THOUGH ACCEPTED THE CON TENTION OF THE ASSESSEE REGARDING THE PAYMENT MADE TO NATIONAL INS TITUTE OF AGRICULTURAL MARKETING (NIAM) BEING THE INSTITUTION WHICH IS EXEMPT FROM TAX U/S 10(23)(3B) OF THE ACT AND ACCORDINGLY DELET ED THE ADDITION MADE BY THE ASSESSING OFFICER IN RESPECT OF THE PAYMENT TO NIAM. HOWEVER, THE LD. CIT(A) HAS CONFIRMED THE ASSESSMENT/DEMAND R AISED BY THE ASSESSING OFFICER U/S 201(1) IN RESPECT OF RS. 2,83 ,592/- ON THE INTEREST PAYMENT TO STPI. 4. BEFORE US, THE LD AR OF THE ASSESSEE HAS SUBMITT ED THAT THE STPI IS AN AUTONOMOUS SOCIETY AND FORMED BY THE MINISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY, GOVERNMENT OF INDIA ON 05/6/ 1991, THEREFORE, THE SAID SOCIETY IS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 IS ITA 887/JP/2018_ PUNJAB NATIONAL BANK VS. ACIT(TDS) 3 EXEMPT FROM TDS U/S 194A(3)(III)(F) OF THE ACT VIDE NOTIFICATION NO. SO3489 DATED 22/10/1970. THE LD AR HAS ALSO FILED TH E BACKGROUND OF STPI TAKEN FROM THE WEBSITE OF MINISTRY OF ELECTRONIC S & INFORMATION TECHNOLOGY, GOVERNMENT OF INDIA AND SUBMITTED THAT T HE SAID SOCIETY UNDER THE SOCIETIES REGISTRATION ACT, 1860 UNDER TH E MINISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY, GOVERNMENT OF INDIA, THUS AS PER THE PROVISIONS OF SECTION 194A(3)(III)(F) OF THE AC T, ANY SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 FINANCED WHOLLY BY THE GOVERNMENT IS EXEMPT FROM TDS AS PER THE NOTIFICATI ON NO. SO3489 DATED 22/10/1970. HENCE, THE LD AR HAS SUBMITTED TH AT THE PAYMENT MADE TO THE SOCIETY IS NOT LIABLE FOR TDS AS PER TH E SAID NOTIFICATION ISSUED U/S 194A(3)(III)(F) OF THE ACT. HOWEVER, SINC E THIS PLEA WAS NOT RAISED BEFORE THE AUTHORITIES BELOW, THEREFORE, HE H AS PLEADED THAT THE ISSUE MAY BE REMITTED TO THE ASSESSING OFFICER FOR VERIFICATION AND ADJUDICATION. 5. ON THE OTHER HAND, THE LD DR HAS SUBMITTED THAT DESPITE SUFFICIENT OPPORTUNITIES, THE ASSESSEE DID NOT RAISE THIS ISSU E, THEREFORE, THE SAME CANNOT BE RAISED AT THIS STAGE. HE HAS RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 6. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL A S RELEVANT MATERIAL ON RECORD WE NOTE THAT THE STPI IS A SOCIETY ESTABLISHED AND ITA 887/JP/2018_ PUNJAB NATIONAL BANK VS. ACIT(TDS) 4 REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 18 60 BY THE MINISTRY OF ELECTRONICS & INFORMATION TECHNOLOGY, GOVERNMENT OF INDIA ON 05/6/1991. AS PER THE NOTIFICATION SCHEME U/S 194A( 3)(III)(F) OF THE ACT IF ANY SOCIETY IS REGISTERED UNDER THE SOCIETIES REGIS TRATION ACT 1860 AND FINANCED WHOLLY BY THE GOVERNMENT THEN AS PER THE NO TIFICATION NO. SO3489 DATED 22/10/1970, THE DEDUCTION OF TAX AT SO URCE IS NOT REQUIRED SO FAR AS THE INTEREST PAID TO SUCH SOCIETY. SINCE THIS STATUS OF STPI BEING NOTIFIED U/S 194A(3)(III)(F) OF THE ACT HAS NOT BEE N VERIFIED BY THE AUTHORITIES BELOW, THEREFORE, WE SET ASIDE THIS ISSUE TO THE RECORD OF THE ASSESSING OFFICER FOR VERIFICATION AND ADJUDICATION OF THIS ISSUE WHETHER THE STPI IS A SOCIETY FALLING UNDER THE CATEGORY AS NOTIFIED U/S 194A(3)(III)(F) OF THE ACT AS CLAIMED BY THE ASSESS EE. NEEDLESS TO SAY THAT THE ASSESSEE IS GIVEN APPROPRIATE OPPORTUNITY OF HE ARING BEFORE PASSING THE ORDER. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 20/11/2018. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20 TH NOVEMBER, 2018 *RANJAN ITA 887/JP/2018_ PUNJAB NATIONAL BANK VS. ACIT(TDS) 5 VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- PUNJAB NATIONAL BANK, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE ACIT (TDS), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 887/JP/2018) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR