Appeal details
Counselvise Citation
[2016] 132 COUNSELVISE.COM (IT) 2038 (ITAT-PANAJI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 18 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
13-07-2016
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
SMC
Next Hearing Date
13-07-2016
Assessment Year
2011-2012
Appeal Filed On
25-05-2016
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO S . 93 TO 101 /P A N/201 6 (ASST. YEAR S : 2011 - 12 , 2012 - 13 & 20 1 3 - 1 4 ) ACIT (TDS), CIRCLE, PANAJI - GOA. VS. 1) M/S. SYNDICATE BANK, HEAD OFFICE MANIPAL, UDUPI DISTRICT. PAN NO. AACCS 4699 E 2) M/S. CORPORATION BANK, HEAD OFFICE, P.B. 88, MANGALADEVI TEMPLE ROAD, PANDESHWAR, MANGALORE. PAN NO. AAACC 7245 E 3) M/S. KARNATAKA BANK, H EAD OFFICE KARNATAKA BANK BUILDING, KODIALBAIL, MANGALORE . PAN NO. AABCT 5589 K C.O.NOS. 50 TO 52/PAN/2016 ( ITA NO S . 9 9 TO 101 /P A N/201 6 ) (ASST. YEAR S : 2011 - 12, 2012 - 13 & 20 13 - 1 4 ) M/S. KARNATAKA BANK, HEAD OFFICE KARNATAKA BANK BUILDING, KODIALBAIL, MANGALORE. PAN NO. AABCT 5589 K VS. ACIT (TDS), CIRCLE, PANAJI - GOA. (APPELLANT) (RESPONDENT) 2 ITA NO. 93 - 101 /P A N/201 6 C.O.NOS. 50 - 52/PAN/2016 ASSESSEE S BY : SHRI S. ANANTHAN & MRS. LALITHA RAMESWARAN - CAS ( ITA NOS. 93 - 98/PAN/2016) NONE (ITA NOS. 99 - 101/PAN/2016) ( CO NOS. 50 - 52/PAN/2016 ) DEPARTMENT BY : SHRI S. SRINIVAS - DR DATE OF HEARING : 13 / 0 7 /201 6 . DATE OF PRONOUNCEMENT : 13 / 0 7 /201 6 . O R D E R THESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE SEPARATE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS) , MANGALURU PASSED IN APPEAL NO S . 26 TO 28 , 01 TO 03 & 23 TO 25 /MNG/CIT(A)MNG/14 - 15 , ALL DATED 24/03/2016 FOR THE ASSESSMENT YEARS 2011 - 12, 2012 - 13 & 2013 - 14 . CROSS OBJECTIONS ARE FILED BY THE ASSESSEE IN ITA NOS. 99 TO 101/PAN/2016 . 2. SHRI S. SRINIVAS , DEPARTMENTAL REPRESENTATIVE REPRESENTED ON BEHALF OF THE REVENUE AND SHRI S. ANANTHAN & MRS. LALITHA RAMESWARAN, CAS REPRESENTED ON B EH A L F OF THE ASSESSEE S . 3 . THE DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ONLY ISSUE IN ALL THESE APPEALS WERE AGAINST THE ACTION OF THE COMMISSIONER OF INCOME TAX (APPEALS) IN CANCELLING THE LEVY UNDER SECTION 201 (1) & 201(1A) IN RESPECT OF NON - DEDUCTION OF TDS , I N RESPECT OF PAYMENTS MADE BY THE BANKS TO NATIONAL PAYMENT CORPORATION OF INDIA (NPCI) WHICH IS A COMPANY REGISTERED UNDER SECTION 25 OF THE COMPANIES ACT, 1956 AND ALSO GOT REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 . IT WAS THE SUBMISSION THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAD FOLLOWED THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF ITC HOTELS LTD. REPORTED IN (2015) 60 TAXMANN.COM 3 ITA NO. 93 - 101 /P A N/201 6 C.O.NOS. 50 - 52/PAN/2016 346 (KAR.) WHEREIN THE HONBLE HIGH COURT OF KARNATAKA HAS HELD THAT IT IS THE RECIPIENT WHICH WOULD BE CHARGEABLE TO TAX AND IF THE RECIPIENT IS NOT LIABLE TO PAY TAX, THEN THE QUESTION OF DEDUCTION OF TAX AT SOURCE WOULD NOT ARISE . IT WAS FAIRLY AGREED BY THE DEPARTMEN TAL REPRESENTATIVE THAT THE NPCI HAS FILED ITS RETURNS OF INCOME AND HAS DISCLOSED THE RECEIPTS FROM THE CONCERNED BANKS AND THEY HAVE BEEN ALSO GRANTED THE BENEFIT OF EXEMPTION UNDER SECTION 12A . IT WAS THE SUBMISSION THAT THE ORDER OF THE COMMISSI ONER OF INCOME TAX (APPEALS) WAS LIABLE TO BE REVERSED. 4 . IN REPLY , AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THERE IS NO LIABILITY UNDER SECTION 201(1) INSOFAR AS THE ASSESSING OFFICER HAS IN A N ORDER UNDER SECTION 1 5 4 IN AUGUST, 2014 CANCELLED THE DEM A ND RAISED UNDER SECTION 201(1) AND THE ISSUE WAS ONLY OF 201(1A) . IT WAS THE SUBMISSION THAT THE INTEREST LEVY UNDER SECTION 201(1A) WAS BELOW 10 LAC A S PER 154 ORDERS , IN ALL THE CASES. IT WAS THE SUBMISSION THAT THE A P P E A L S W E R E LIABLE TO BE DISMISSED. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSAL OF THE GROUND S OF APPEAL CLEARLY SHOWS THAT REVENUE HAS NOT CHALLENGED THE CANCELLATION OF LEVY OF INTEREST UNDER SECTION 201(1A) IN ANY OF ITS APPEALS . A PERUSAL OF THE 154 ORDERS CLEARLY SHOW THAT THE ASSESSING OFFICER HIMSELF HAS CANCELLED THE LEVY UNDER SECTION 201(1) AND REWORKED THE LEVY OF INTEREST UNDER SECTION 201(1A) . IN THESE CIRCUMSTANCES , THE GROUNDS AS RAISED BY THE REVENUE , BEING INFRUCTUOUS , T HE APPEALS NO MORE SURVIVES AND THE SAME STAND DISMISSED IN LIMINI . EVE N TAKING A LIBERAL VIEW THAT THE GROUNDS ARE READ TO BE AS AGAINST CANCELLATION OF LEVY OF INTEREST UNDER SECTION 201(1A) , AS THE SAME ARE BELOW THE TAX EFFECT OF 10 LAC AS PRESCRIBED BY THE CBDT FOR THE PURPOSE OF FILING OF APPEAL S BEFORE THE TRIBUNAL IN F.NO. 279/MISC.142/2007 - ITJ(PT) , CIRCULAR NO. 21/2015 DATED 4 ITA NO. 93 - 101 /P A N/201 6 C.O.NOS. 50 - 52/PAN/2016 10/12/2015 , A PPEALS OF THE REVENUE ARE LIABLE TO BE DISMISSED. IN THESE CIRCUMSTANCES , O N BOTH THESE GROUNDS , APPEALS OF THE REVENUE STAND DISMISSED. 6 . THE CROSS OBJECTION S FILED BY THE ASSESSEE - M/S. KARNATAKA BANK , I S NOTICED TO BE IS ONLY IN SUPPORT OF THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) . A S THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) STAND CONFIRMED, THE CROSS OBJECTIONS FILED BY THE ASSESSEE - M/S. KARNATAKA BANK FOR ALL THE THREE A SSESSMENT Y EARS STAND D ISMISSED. 7. IN THE RESULT, APPEAL S OF THE REVENUE AND THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON WEDNESDAY , THE 1 3 TH DAY OF JU LY , 201 6 AT GOA . S D / - (GEORGE MATHAN) JUDICIAL MEMBER DATED : 1 3 TH JU LY , 201 6 . VR/ - COPY TO: 1 . THE ASSESSEE. 2 . THE REVENUE. 3 . THE CIT 4 . THE CIT(A) 5 . THE D.R . 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI
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