Lakshmi Vilas Bank Limited, Guntur V. The Income Tax Officer, Ward-1 (TDS), , Guntur

SA 11/VIZ/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4025 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 22-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Application of stay; Reasonable cause; TDS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER S.P .NO. 11 /VIZ/ 201 9 AND 12/VIZ/2019 (ARISING OUT OF I.T.A.NO. 163 /VIZ/201 9 &164/VIZ/2019 RESPECTIVELY ) ( / ASSESSMENT YEAR: 201 4 - 1 5 AND 2015 - 16 ) M/S LAKSHMI VILAS BANK LTD., 23 - 1 - 97, MAIN ROAD PATNAM BAZAR GUNTUR [ PAN : A AACT4291P ] VS. INCOME TAX OFFICER WARD - 1(TDS) GUNTUR ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI , AR / RESPONDENT BY : S MT.SUMAN MALIK , DR / DATE OF HEARING : 02 . 05 .201 9 / DATE OF PRONOUNCEMENT : 02 .05.2019 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : IN THIS CASE , THE ASSESSING OFFICER (AO) HAS LEVIED INTEREST U/S 201 / 201(1A) FOR NON DEDUCTION OF TAX AT SOURCE ON INTEREST PAYMENTS MADE TO THE DEPOSITORS. THE DEMAND OUTSTANDING FOR THE A.Y. 2014 - 15 AND 2015 - 16 ARE AS FOLLOWS: 2 S.P. NO . 11&12 /VIZ/201 9 M/S LAKSHMI VILAS BANK LTD., GUNTUR A.Y. AMOUNT OUTS TANDING 2014 - 15 - RS.17,95,874/ - 2015 - 16 - RS.18,71,389/ - TOTAL - RS.36,67,263/ - THE ASSESSEE WENT ON APPEAL BEFORE THE COMMISSIONER OF INCOME TAX(APPEALS) [CIT(A)] AND THE LD.CIT(A) HAS CONFIRMED THE ORDER OF THE AO. THEREFORE, THE ASSESSEE HAS FILED APPEAL BEFORE THIS TRIBUNAL AND ALSO FILED STAY PETITION REQUESTING FOR STAY OF THE OUTSTANDING DEMAND. 2. DURING THE HEARING OF THE STAY PETITION, THE LD.AR SUBMITTED THAT THE ASSESSEE HAS COLLECTED FORM NO.15G/15H FROM THE DEPOSITORS TO WHOM THE INTEREST WAS PAID AND THERE IS NO DEFAULT ON THE PART OF ASSESSEE FOR CHARGING INTEREST U/S 201(1)/201(1A) AND ARGUED THAT THE ASSESSEE IS HAVING FAIR CHANCES FOR SUCCEEDING IN APPEAL. ON THE OTHER HAND THE LD.DR OPPOSED FOR GRANT OF STAY AND ARGUED THAT THE CIT(A) HAS CONFIRMED THE ORDER OF THE AO WITH A DETAILED REASONING AND HENCE THE DEPA RTMENT IS CONFIDENT OF SUCCEEDING IN APPEAL, THEREFORE THERE IS NO CASE FOR STAY OF THE DEMAND. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. IN THE INSTANT CASE, THE TOTAL OUTSTANDING DEMAND IS 36,67,263/ - FOR 3 S.P. NO . 11&12 /VIZ/201 9 M/S LAKSHMI VILAS BANK LTD., GUNTUR BOTH THE ASS ESSMENT HEARS. BOTH THE PARTIES ARE CONFIDENT OF SUCCEEDING THE APPEAL. THE ASSESSEE IS A BANK WH ICH IS HAVING LIQUIDITY FOR PAYMENT OF THE DEMAND AND AT THE SAME TIME, THE ASSESSEE IS ALSO HAVING SUFFICIENT RESOURCES TO MAKE THE PAYMENT OF DEMAND IN CASE THE APPEAL IS DECIDED AGAINST THE ASSESSEE AS SUBMITTED BY THE LD.AR . THEREFORE, CONSIDERING THE FACTS AND MERITS OF THE STAY APPLICATION, WE ARE INCLINED TO STAY THE DEMAND FOR 180 DAYS FROM THE DATE OF THIS ORDER, SUBJECT TO PAYMENT OF 20% OF THE OUTST ANDING DEMAND IN TWO EQUAL INSTALLMENTS FROM THE MONTH OF MAY 2019 ONWARDS. THE FIRST INSTALLMENT SHOULD BE PAID ON OR BEFORE THE 31 ST MAY 2019 AND THE SECOND INSTALMENT SHOULD BE PAID ON OR BEFORE 30 TH JUNE 2019. IN CASE THE ASSESSEE CO MMITS DEFAULT IN PAYMENT OF INSTALLMENT OR THE ASSESSEE SEEKS ADJOURNMENT ON THE DATE OF HEARING WITHOUT A REASONABLE CAUSE , THE FACILITY GRANTED TO THE ASSESSEE WOULD BE WITHDRAWN AND THE DEPARTMENT IS FREE TO COLLECT THE DEMAND. 4 . IN THE RESULT, STAY APPLICATION OF THE ASSESSEE IS ALLOWED. 4 S.P. NO . 11&12 /VIZ/201 9 M/S LAKSHMI VILAS BANK LTD., GUNTUR ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND MAY 2019 . S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 0 2 . 05 .201 9 L. RAMA, SPS /COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT LAKSHMI VILAS BANK LTD., 23 - 1 - 97, MAIN ROAD PATNAM BAZAR , GUNTUR 2 . / THE RESPONDENT INCOME TAX OFFICER , WARD - 1(TDS) , GUNTUR 3 . THE COMMISSIONER OF INCOME TAX , TDS, VI JAYAWADA 4. THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 , GUNTUR 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM