ACIT (TDS), New Delhi V. The Gurgaon Central Co-op Bank Ltd. Branch- CIvil Lines, Gurgaon

ITA 913/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3787 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 23-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 201(1)

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI H.S.SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 9 1 3/DEL/2016 (ASSESSMENT YEAR: 2012 - 13 ) ACIT, 5 TH FLOOR, UDYOG VIHAR, PHASE - V, NEW DELHI VS. THE GURGAON CENTRAL CO - OP BANK LTD, BRANCH - CIVIL LINES, GURGAON PAN: AAALT0271A (APPELLANT) (RESPONDENT) REVENUE BY : SHRI ARUN KUMAR YADAV, SR. DR ASSESSEE BY: NONE DATE OF HEARING 15/11 /2017 DATE OF PRONOUNCEMENT / 0 2 / 2018 O R D E R PER PRASHANT MAHARISHI , A. M. 1. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD CIT(A) - 02.12.2015 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE LD CIT(A) ERRED IN LAW AND FACTS BY CONSIDERING THE APPELLANT HAS COOPERATIVE SOCIETY AND NOT LIABLE TO DEDUCT TDS IN ACCORDANCE TO SECTION 194(3)(V) OF THE ACT. 2. THE LD CIT( A) ERRED IN LAW AND FACTS BY IGNORING THE FACT THAT THOUGH APPELLANT IS CO - OP SOCIETY BUT ENGAGED IN THE BUSINESS OF BANKING AND THEREFORE, NO EXEMPT U/S 194(3)(V) AND THUS THE LD CIT(A), GURGAON HAS ERRED IN DELETING THE DEMAND RAISED ON ACCOUNT OF SHORT DEDUCTION OF TDS OF RS. 1421800/ - AND INTEREST THEREON OF RS. 426539/ - . 3. ASSESSEE IS A COOPERATIVE BANK. IT FILED ITS RETURN OF TAX DEDUCTION AT SOURCE AND FURTHER INSPECTION WAS CONDUCTED ON 7/11/2013 AT THE HEAD OFFICE OF THE ASSESSEE. DURING THE COURS E OF INSPECTION IT WAS FOUND THAT VARIOUS BRANCHES OF THIS BANK HAVE NOT DEDUCTED TAX AT SOURCE UNDER SECTION 194A ON THE AMOUNT OF INTEREST PAID ON TERM DEPOSITS WHICH WAS REQUIRED TO BE MADE. IT WAS FURTHER NOTED THAT ASSESSEE HAS PAID INTEREST TO PRIMAR Y AGRICULTURAL SOCIETIES AND OTHER SOCIETIES BUT DID NOT DEDUCT TAX PAGE | 2 AT SOURCE ON SUCH INTEREST PAYMENT. HENCE THE LD. ASSESSING OFFICER ISSUED SHOW CAUSE NOTICE UNDER SECTION 201 (1) AND 201 (1A) OF THE ACT. ASSESSEE DID NOT SUBMIT ANY REPLY BUT LATER ON I T SUBMITTED ITS EXPLANATION . HOWEVER THE LD. ASSESSING OFFICER WAS NOT SATISFIED WITH THE REPLY AND THEREFORE PASSED AN ORDER UNDER SECTION 201(1) FOR SHORT DEDUCTION OF TAX OF RS. 1421800/ AND UNDER SECTION 201(1A) OF RS. 426539/ AS INTEREST. 4. THE ASSESS EE AGGRIEVED WITH THE ORDER OF THE LD AO PREFERRED AN APPEAL BEFORE THE LD. CIT (A). THE LD. CIT(A) FOLLOWING THE DECISION OF THE COORDINATE BENCH IN CASE OF ALMORA URBAN COOPERATIVE BANK DELETED THE ABOVE SHORT DEDUCTION OF TAX AS WELL AS INTEREST THEREON . THEREFORE ASSESSEE IS IN APPEAL BEFORE US. 5. DESPITE NOTICE NONE APPEARED ON BEHALF OF THE ASSESSEE. HENCE, THE ABOVE APPEAL HAS BEEN HEARD AND DECIDED ON THE MERITS OF THE CASE AS PER INFORMATION AVAILABLE ON RECORD. 6. LD. DEPARTMENTAL REPRESENTATIVE VEHEM ENTLY SUPPORTED THE ORDER OF THE LD. AO. 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTION AND PER USED THE ORDERS OF THE LOWER AUTHORITIES. THE LD. CIT (A) HAS DELETED THE SHORT DEDUCTION OF TAX AS WELL AS INTEREST THEREON BASED ON THE DECISION OF THE COOR DINATE BENCH IN CASE OF ALMORA URBAN COOPERATIVE BANK LTD VS. ITO IN ITA NO. 5324/ DEL /2013 . NO CONTRARY DECISIONS HAVE BEEN POINTED OUT BEFORE US BY THE LD. DEPARTMENTAL REPRESENTATIVE . EVEN OTHERWISE THE LD. CIT (A) HAS GIVEN A DIRECTION TO THE LD. ASSESSING OFFICER TO VERIFY WHETHER ALL THE COOPERATIVE SOCIETIES TO WHOM INTEREST WAS PAID WERE REGISTERED UNDER THE ACT OR NOT. IN VIEW OF THIS WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE. 8. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDE R PRONOUNCED IN THE OPEN COURT ON 0 7 / 0 2 / 2018 . - S D / - - S D / - ( H.S.SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER PAGE | 3 DATED: 0 7 / 02 / 2018 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI