PURULIA CENTRAL CO-OPERATIVE BANK LTD., ,PURULIA V. ITO, WARD 4(4), TDS, , BANKURA AND PURULIA

ITA 779/KOL/2025

AI Insights

The case involves Purulia Central Co-operative Bank Limited, which appealed against the order of the Addl./JCIT(A)-2, Mumbai, concerning the assessment year 2017-2018. The bank, a cooperative society engaged in banking, had a system installed by Tata Consultancy Ltd that failed to deduct TDS (Tax Deducted at Source) automatically. Despite multiple reminders to Tata Consultancy Ltd to rectify this, the system remained unchanged, leading to manual non-deduction of TDS, which the AO treated as a defect under sections 201(1) and 201(1A) of the Income Tax Act. The CIT(A) upheld the AO's decision. The bank argued that it had sufficient evidence to prove its case and requested another opportunity to present documents before the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772535 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: M. GOENKA
• Keywords: Reasonable cause; TDS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER आयकर अपील सं/ITA No.779/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2017-2018) Purulia Central Co-operative Bank Limited, Ranchi Road, PO & Dist-Purulia West Bengal-723101 Vs ITO Ward-4(4) TDS, Bankura & Purulia PAN No. :AAAJP0148 E (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri M. Goenka, CA रधजस्व की ओर से /Revenue by : Shri S.B.Chakraborthy, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/08/2025 घोषणा की तारीख/Date of Pronouncement : 28/08/2025 आदेश / O R D E R Per Pradip Kumar Choubey, JM : The assessee has filed the instant appeal against the order dated 14.02.2025, passed by the ld. Addl./JCIT(A)-2, Mumbai for the assessment year 2017-2018. 2. Facts of the present case of the assessee are that the assessee is a banking co-operative society and is carrying on banking business and had installed system of Tata Consultancy Ltd. The above system did not have system for deduction of TDS. The assessee had sent several reminders to the Company to instate TDS deduction system to Tata Consultancy Ltd but it was not installed. The assessee could not do the work manually as it is not possible deduct tax manually and place the figures manually it is not embodied in the system. Accordingly, the assessee has reasonable cause for not deducting TDS, however, the AO treated as assessee in defect under section 201(1)/201(1A) of the Act. It Printed from counselvise.com ITA No.779/KOL/2025 2 was also submitted by the ld.AR that non-accepting of Form 15G and 15H on the ground non submission of receipts for them for sending to the Commissioner of Income Tax when the assessee prayed for some time there to submit the evidence of such sending after collecting the some from various branches and imposing TDS liability by the AO is illegal. In appeal, the ld. CIT(A) has also confirmed the view taken by the AO. 3. Before us, ld. AR of the assessee submitted that the assessee has sufficient evidence to prove his case, therefore, ld.AR prayed that assessee may be given one more opportunity to file the relevant documents to substantiate its case before the ld.AO 4. On the other hand, ld. Sr.DR vehemently supported the orders of the lower authorities and submitted that the assessee was unable to substantiate its case before either of the authorities below. Therefore, ld.Sr.DR prayed that orders of the authorities below deserve to be upheld. 5. Upon hearing the submissions of counsel for the respective parties and perusing the facts of the case and submission made by the ld. AR, we find that the ld. CIT(A) in the last para of it’s finding mentioned that the assessee has not produced any proof of having filed the statement. It has also been observed by the ld.CIT(A) that no details have been given by the assessee to show as to whether the entire interest of Rs.3,21,93,315/- has been covered by Forms 15H/15G of the Act. However, the ld. AR during the course of hearing requested for one more opportunity to prove its case by submitting relevant documents before the AO. Therefore, in the interest of justice, we restore the issues in this appeal to the file of ld.AO for adjudication afresh after providing sufficient opportunity of being Printed from counselvise.com ITA No.779/KOL/2025 3 heard to the assessee. The assessee is also directed to produce all the relevant documents to substantiate its case and cooperate in the fresh adjudication proceedings before the ld. AO, positively. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28/08/2025. Sd/- (RAJESH KUMAR) Sd/- (PRADIP KUMAR CHOUBEY) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 28/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "