The Karad Urban Co-operative Bank Ltd., Karad V. Income Tax Officer, Satara

ITA 896/PUN/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7481 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-03-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 15-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY DAMLE
• Keywords: Opportunity of being heard
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI I C SUDHIR, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 896/PN/2010 (ASSTT. YEARS: 2005-06) THE KARAD URBAN CO-OP. BANK LTD., .. APPELLANT 516/2, SHANIWAR PETH, KARAD PAN AAAAT3981A VS. INCOME-TAX OFFICER, WARD-1, SATARA .. RESPONDENT APPELLANT BY: SHRI M.K. KULKARNI RESPONDENT BY: SHRI ABHAY DAMLE ORDER PER G.S. PANNU, AM THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)III, PUNE DATE D 10.03.2010 WHICH, IN TURN, HAS ARISEN FROM AN ORDER OF THE ASSESSING OFF ICER DATED 16.12.2008 PASSED UNDER SECTION 154 OF THE INCOME-TAX ACT, 196 1 (IN SHORT THE ACT), PERTAINING TO THE ASSESSMENT YEAR 2005-06. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS AGAINST TH E ACTION OF THE ASSESSING OFFICER IN DENYING THE CREDIT FOR TAX DED UCTED AT SOURCES (TDS) AMOUNTING TO RS 51,551/-. IN THIS CASE, THE RETURN OF INCOME FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT, WHEREIN CREDIT FOR THE TDS CLAIMED BY THE ASSESSEE AT RS 2,46,060/- WA S ALLOWED. THEREAFTER, AN ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS A LSO COMPLETED ON 20.12.2007. SUBSEQUENTLY, IN AN ORDER PASSED UNDER SECTION 154 OF THE ACT ON 16.12.2008, THE ASSESSING OFFICER AMENDED THE OR DER PASSED UNDER SECTION 143(3) DATED 20.12.2007 BY DENYING CREDIT F OR TWO TDS CERTIFICATES AMOUNTING TO RS 51,551/- ON THE GROUND THAT THE SAM E DID NOT PERTAIN TO THE CURRENT YEAR. ON AN APPEAL BY THE ASSESSEE, COMMISS IONER OF INCOME-TAX (APPEALS) HAS ALSO UPHELD THE ORDER PASSED BY THE A SSESSING OFFICER UNDER SECTION 154 OF THE AC DATED 16.12.2008. NOT BEING S ATISFIED, THE ASSESSEE IS ITA NO 896/PN/10 KARAD URBAN CO-OP BANK LTD., KARAD 2 IN FURTHER APPEAL BEFORE US. IN THE ABOVE LIGHT, RI VAL SUBMISSIONS HAVE BEEN HEARD. 3. SECTION 199 OF THE ACT PROVIDES THAT ANY TAX DED UCTED AT SOURCE AND PAID TO THE CENTRAL GOVERNMENT SHALL BE TREATED AS A PAYMENT OF TAX ON BEHALF OF THE PERSON FROM WHOSE INCOME THE DEDUCTIO N WAS MADE. SECTION 199 ALONG WITH THE RELEVANT RULES PROVIDE FOR GIVIN G CREDIT TO THE ASSESSEE IN RESPECT OF SUCH TAX DEDUCTED AT SOURCE. IN THE PRES ENT CASE, WE FIND THAT NEITHER THE ASSESSING OFFICER NOR THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS BROUGHT OUT THE PRECISE REASON FOR DENIAL OF TH E CREDIT TO THE ASSESSEE. THERE IS NO REASON FORTHCOMING IN THE ORDER OF THE ASSESSING OFFICER AS TO ON WHAT BASIS IT IS STATED THAT THE TDS AMOUNTING TO R S 51,551/- DOES NOT PERTAIN TO THE YEAR UNDER CONSIDERATION. WE, THEREF ORE, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER, WHO SHALL CONSIDER THE CLAIM IN THE LIGHT OF STATUTORY PROVISIONS, AFTER ALLOWING AN OPPORTUNITY OF BEING HEARD IN SUPPORT O F ITS CLAIM, AND THEN PASS AN ORDER AFRESH IN ACCORDANCE WITH LAW. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF MARCH 2011. SD/- SD/- (I.C. SUDHIR) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER PUNE: DATED: 16 TH MARCH, 2011 B COPY OF THE ORDER IS FORWARDED TO : 1. KARAD URBAN CO-OP. BANK LTD, KARAD 2. THE ITO WD-1, SATARA 3. THE CIT(A)-III PUNE 4. THE CIT-III PUNE 5. THE D.R, A BENCH, PUNE TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, PUNE BENCHES, PUNE ITA NO 896/PN/10 KARAD URBAN CO-OP BANK LTD., KARAD 3