ITO, Bangalore V. M/s Broadcom Communication Technologies (P) Ltd., Bangalore

ITA 895/BANG/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1470 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 03-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA.895 & 900/BANG/2014 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A NOS.895 & 900/BANG/2014 (ASSESSMENT YEARS : 2009-10 & 2010-11) INCOME-TAX OFFICER (TDS), WARD 16(1), BANGALORE ..APPELLANT V. M/S. BROADCOM COMMUNICATION TECHNOLOGIES (P) LTD, FORMERLY KNOWN AS M/S. BROADCOM INDIA RESEARCH (P) LTD, CAMPUS 1A, 4 TH FLOOR, RMZ ECHO SPACE, BELLANDUR VILLAGE, VARTHUR HOBLI, BANGALORE ..RESPO NDENT PAN : BLRB05370B ASSESSEE BY : SHRI. SHARATH RAO, CA REVENUE BY : DR. P. K. SRIHARI, ADDL. CIT HEARD ON : 07.09.2015 PRONOUNCED ON : 11.09.2015 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : GROUNDS TAKEN BY REVENUE IN BOTH THESE APPEALS ARE SIMILAR AND ARE REPRODUCED HEREUNDER : ITA.895 & 900/BANG/2014 PAGE - 2 02. FACTS APROPOS ARE THAT ASSESSEE HAD DEDUCTED TA X AT SOURCE ON VARIOUS PAYMENTS EFFECTED BY IT, WHICH REQUIRED SUCH DEDUCT ION UNDER CHAPTER XVII OF THE INCOME-TAX ACT, 1961 (THE ACTIN SHORT) AND SU CH AMOUNTS WERE DEPOSITED INTO THE GOVERNMENT ACCOUNT EITHER THROUGH CHEQUES OR ELECTRONIC TRANSFERS. AO WAS OF THE OPINION THAT TDS AMOUNTS REMITTED BY THE ASSESSEE WERE RECEIVED IN THE GOVERNMENT ACCOUNT BEYOND THE STIPULATED TIME, VIZ., 7 TH DAY OF THE SUCCEEDING MONTH. ASSESSEE POINTED OUT THAT PAYMEN TS WERE EFFECTED PRIOR TO THE DUE DATE, EITHER BY WAY OF ELECTRONIC TRANSFERS OR BY WAY OF CHEQUES, AND ITA.895 & 900/BANG/2014 PAGE - 3 WHENEVER IT WAS BY CHEQUES, SUCH CHEQUES WERE HONOU RED. AS PER THE ASSESSEE, DATE OF PAYMENT RELATED BACK TO THE DATE OF PRESENT ATION OF THE CHEQUE OR ITS TRANSFER BY ELECTRONIC MODE. HOWEVER, AO WAS NOT I MPRESSED. ACCORDING TO HIM, FOR GOVERNMENT DUES WHICH ARE PAYABLE WITHIN A STIPULATED DATE, THE PERSON DESIRING TO MAKE THE PAYMENT BY MEANS OF CHEQUE OR BANK DRAFT SHOULD TAKE SUITABLE PRECAUTION TO ENSURE THESE ARE RECEIVED IN GOVERNMENT ACCOUNT IN GOOD TIME. RELYING ON CENTRAL GOVERNMENT ACCOUNT (RECEI PTS AND PAYMENTS) RULES, AO CAME TO A CONCLUSION THAT THERE WERE DELAYS IN R EMITTANCE OF TDS AMOUNTS. INTEREST WAS LEVIED ON THE ASSESSEE U/S.201(1A) OF THE INCOME-TAX ACT, 1961 (THE ACT IN SHORT) FOR THE ALLEGED DELAYS. 03. AGGRIEVED ASSESSEE MOVED IN APPEALS BEFORE THE CIT (A). LD. CIT (A) RELYING ON CBDT CIRCULAR NO.261, HELD THAT PAYMENTS THROUGH CHEQUES WOULD RELATE BACK TO PRESENTATION OF CHEQUES, ONCE CHEQUE S WERE HONOURED AND ASSESSEE COULD NOT BE HELD LIABLE FOR DELAYS ON THE PART OF CLEARING BANKS. RELEVANT FINDING OF CIT (A) IS REPRODUCED HEREUNDER : ITA.895 & 900/BANG/2014 PAGE - 4 ITA.895 & 900/BANG/2014 PAGE - 5 1. 2. 3. 04. BEFORE US, LD. DR COULD NOT BRING ANYTHING ON R ECORD TO SHOW THAT THERE WAS ANY DEFAULT ON THE PART OF THE ASSESSEE FOR EFF ECTING THE REMITTANCES IN TIME. 05. PER CONTRA LD. AR SUPPORTED THE ORDER OF CIT (A ). 06. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL CONTENTIONS. REMITTANCE OF TDS WHICH WERE EFFECTED BY THE ASSESSEE EITHER T HROUGH E-GATEWAYS, OR BY CHEQUES. THESE WERE ADMITTEDLY DONE BEFORE THE DUE DATES. SUCH PAYMENTS ONCE MADE BEFORE THE DUE DATE, IT WAS BEYOND THE C ONTROL OF ASSESSEE TO ENSURE ITS TRANSMISSION TO THE GOVERNMENT ACCOUNT WITHIN S UCH DUE DATE. ASSESSEE COULD NEVER BE FAULTED FOR DELAY ON THE PART OF THE BANK OR THE CLEARING HOUSE, WHATEVER MAY BE THE RULES GOVERNING RECEIPTS AND PA YMENTS INTO THE CENTRAL GOVERNMENT ACCOUNT. IN OUR OPINION, REASON GIVEN B Y THE CIT (A) CANNOT BE FAULTED WITH. WE DO NOT FIND ANY REASON TO INTERFE RE WITH HIS ORDERS. ITA.895 & 900/BANG/2014 PAGE - 6 07. IN THE RESULT, APPEALS OF REVENUE STAND DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DAY OF SEPTEMBER, 2015. SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (ABRAHAM P GEORGE) JUDICIAL MEMBER ACCOUNTA NT MEMBER MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR